Refused joint account in the past, can we reapply now?

R87

Hi

My girlfriend and I would like to open a joint account but were declined when we applied in December. We applied with my bank (Lloyds TSB) and were declined due to my credit rating.

I used to have poor credit due to mismanaging my money as a student and had numerous defaults about 3 years ago. Since settling all of the accounts I haven't missed any payments and my credit score is getting better again. I used to use credit expert and gave up my subscription a few months ago as I felt it was a waste of money and at the time my credit rating was improving. Having been declined for the joint account in December 2012 I took out a subscription again and was surprised to see my rating was down at 704. The only thing I changed since then was paying off a £200 planned overdraft on my second Lloyds account which I don't use much that was overdrawn to 200£, and 3 months later my credit rating is now 856 and classed as the upper scale of "fair".

Is it ok to apply for a joint account again and what are my chances of success?

I have no debt, no credit cards (I'm going to apply for one from my bank also but would like to get the joint account first if applying for two things at once will hinder my chances - will it?) My main account with Lloyds is a silver vantage account and it has no overdraft and has never been overdrawn.

It's frustrating as I know I made mistakes in the past but I don't see any reason why they should hinder me now - the guy at the bank who was processing our previous application said that defaults in the past (even tho not over 6 years old) shouldn't hinder you - and I have no other debt and it's annoying my girlfriend we can't get one.

Any help is much appreciated!

grumbler

Are you sure that you want a joint account in the first place? It will create a financial association between you that will detrimentally affect your gf's credit rating because of your stained past.

What can a joint account do that a single account can't?

CLAPTON

get copies of all three credit files .. forget about the score as it's meaningless

depending what is on the files will determine your next course of action

there seems no reason to trash your GF credit files just for a joint a/c.

R87

Yes we do want a joint account. It will be much easier for paying our bills (we live together) and for shopping, going out for dinner etc.

My credit rating isn't *that* bad. I've had a few defaults but nothing worse and they were all because of ridiculous bank charges mounting up.

What do I do with the copies of the credit files? (Also what are the 3, I have credit expert. Experian and another?)

212

Can you not just add her to your existing account?

She will be credit scored, but if it's you that's the problem there should be no issue - she'll be added to the account you already have no. If anything it reduces the bank's risk (since both of you will be liable for debts, rather than just you).


Lloyds say on their site for existing customers to open a new account, but then it says

New Customers:
You can open an account online in your name only and add someone else to your account at a later date.

- So you could try asking for her to be added, not sure if they will though, but that would certainly be the easier way if her credit profile is fine.

R87

That's an interesting idea, I wasn't aware you could do that. I have two accounts (one is old student account which is now a graduate account which I don't really need / use often) so that would work well if it's possible.

I'll call tomorrow to check.

212

That's how I got my joint account - I failed on credit scoring, presumably the bank wouldn't give me another as I've already got 2 with them. So on the same day as the decline I just requested to change one of my accounts into a joint one and it went through fine

Thought all banks would be happy to do that, but the form I can see on Lloyds' site seems to want existing customers to open a new one so it may be 50/50 as to whether they let you.

Oh and the other CRA is Call Credit. Rarely used for mainstream bank apps, but you can get a copy of your report free from https://www.noddle.co.uk/ - a site they run to give you 1 report a month

They send promotional emails trying to get you to buy scores/protection and other stuff, but if you just delete them it's free

CLAPTON

R87 wrote: »

Yes we do want a joint account. It will be much easier for paying our bills (we live together) and for shopping, going out for dinner etc.

My credit rating isn't *that* bad. I've had a few defaults but nothing worse and they were all because of ridiculous bank charges mounting up.

What do I do with the copies of the credit files? (Also what are the 3, I have credit expert. Experian and another?)

a few defaults?

do you really mean that?

defaults are only a little better that a CCJ

two intelligent people can arrange their financial affairs without having a joint account

I hope you have warned her that having a joint account may trash her good credit record.

R87

I have 4 defaults all of which are settled. One on a loan, one on an old phone contract and 2 on old bank accounts (not with Lloyds). The last default was in 2010.

I agree that it's possible without a joint account (and we have been managing like this for a while) but why shouldn't we make use of a joint account if such a thing exists and will make our lives easier?

I presume after 2016 when my last default has cleared my credit rating should be excellent since I won't be missing any more payments etc.

The_pc_tech

Why don't you wait until your defaults clear and then open a joint account as if your missus has never had any defaults and has a good rating she might not take too kindly to having her rating trashed by financial association with yourself.

When I was younger my Mum got remarried and her new husband insisted they set up a joint account.

A few years later they divorced and we found out he'd not been paying the bills for over a year and he'd been hiding the default letters and had instead been heading down to the bookies with most of their combined salaries.

It took my Mum years to rebuild her relationship with the bank she'd banked with for years beforehand and sort out the debts.

When I started work I was refused a bank account I applied for so looked at my credit file and it had reflected badly on me too so had to file a notice of disassociation.

I am NOT for one moment saying you are anything like that at all but I do think you should wait.

grumbler

R87 wrote: »

Yes we do want a joint account. It will be much easier for paying our bills (we live together)

How a joint account is 'much easier' for bills than a dedicated single one?!

and for shopping, going out for dinner etc.

For shopping etc. a CC with a second cardholder is fine with very few exceptions like, say, Aldi. Unlike a joint account a CC doesn't create an association (am not sure about Amex).

My credit rating isn't *that* bad. I've had a few defaults but nothing worse

You can't be serious.
Your GF is very lucky that you were refused a joint account in the past.

and they were all because of ridiculous bank charges mounting up.

Who cares (except you and your close friends)?