Question about credit ratings?

chelseablue

Hi

Me and my OH would like to get a joint bank account.

I know my credit rating is good.

Say for instance my OH's credit rating is not good, would this 'drag mine down' too?

I will be keeping my individual bank account where my salary will be paid into. I was planning to have OH's name first on the joint account.

My OH has been overdrawn in the past (bad I know!) I thought if he comes onto an account with me and closes his individual one he will not have a chance to be overdrawn ever and so we will improve his credit rating?

He has never had a loan or a credit card (or applied for any) Just an overdraft.

Any advice?

Sorry for waffling!

MPH80

Simple answer - yes - if you get a joint account - your credit histories will be linked.

However, the accounts that are his are clearly marked as such!

What effect it'll have on your rating is ... disputable ... it's possible his 'overdrawn' efforts actually haven't damaged him that much. It's even possible that if it was a big-4 bank and the actions weren't that bad that they didn't report the bad activity. Perhaps you can order his credit file before you go ahead with this? (https://www.experian.co.uk and https://www.equifax.co.uk - £2 each for the paper versions - don't pay for the online version).

To be honest, given he'll only ever had one bad account - I doubt it'll be that bad for you.

M.

dexters_mum_2

Hi there,
I have a good credit rating and y hubby has a bad credit rating and we have had real trouble getting a joint account, even though I can have a sole account no problem.
You may be OK, who were you thinking of opening an account with and does your OH have any adverse credit such as defaults, CCJ's arrears etc?
DM x

chelseablue

Thanks for the quick replies!

We'll definatley order his credit report before proceeding - good idea!

We were thinking of applying to Nationwide for their Flexaccount - this is who we are with currently. But I will be keeping my individual one and OH will be closing his.

He hasnt had any ccjs or anything just seems to be in minus figures frequently! Wont be happening again - Im keeping both cards to the account lol!

Or is it better to get him a new indiviual account with a different provider? We will need a joint account eventually when we move in together but need to get him sorted first :rolleyes:

dexters_mum_2

Alliance and Leicester are supposed to be good, as are Citibank (you can pay in via Lloyds TSB) and both are worth £50 if you apply via Quidco!

anniecave

being in minus figures is OK - as long as he's stayed within an agreed overdraft. It's if he's had penalty charges (eg for going over an overdraft limit or for going overdrawn without an overdraft, or charges for direct debits or other transactions that the bank refused to pay) that would affect a credit rating.

I would say it's worth looking at the rating first and seeing what is there first.

If he does have items on his record, he would have to repair this by having credit in either his name or joint names for long enough for the bad stuff to drop off due to age.

If he does have a bad history, it may prevent you getting joint credit with some providers. If you went down a joint route, it would mean you were then linked financially and I'm not sure whether that would affect you if you wanted credit just in your name solely. I think it shouldn't affect you, but others may know differently.

I would also advise that you be really careful that you manage any joint stuff well, otherwise then both your credit ratings will be affected. And it's easy to slip up I would imagine if you can both use a switch card at the same time in different places!