Advice needed - Is applying for a loan in joint names better?

PurplePow

Just some general advice needed.

My partner is wanting to apply for a loan of £5,500 for a car purchase. He earns £18,850 and has £900 on a credit card (which can be easily paid off in a few months after a new car is sorted out). Apart from the mortgage, this is the only debt in his name. No bad credit history, no missed payments etc.

However, the mortgage is only in his name and I guess I was concerned he would be declined because it might appear as a lot of debt in his name but the only reason my name isn't on the mortgage is because it was advised when we first got it a year ago not to have my name on due to a small default of £200 from 3 years ago. I've since had credit cards, my new Halifax clarity card which I pay in full each month for past 3 months, and like my partner I currently have £800 on a credit card (a Barclaycard balance transfer at a small rate), but also £200 on my Next Directory (due to be paid off next month actually). My income is £16,200 though I have just started my new job.

I'm wondering whether people think it might be better for him to apply in his own name, or whether it would be better as a joint application despite my default?

Tixy

If you go for a joint loan then you will become financially associated as your default will affect any future credit applications until it goes from your record.

I would suggest he applies in just his name.

CH27

As your default is still on file it would be better not to become linked financially with anyone.

PurplePow

Thanks I did think that, I don't want him to be associated with me until it falls off as it would be unfair. Although we do have a joint account for the bills but Halifax don't report this and we aren't linked on our credit reports.