Joint Account - Affect on Credit Rating?

bdh4wK

Evening all,

I'm due to start renting a place with 3 close friends next month; I need some clarification on how my credit rating will be affected if we open a joint bank account to pay rent / bills.

I’m not worried about getting into debt on the joint account itself, I’m fairly well off in comparison and could top up the account if needed. What I am worried about is if someone gets into debt in their personal account, will this affect my credit rating?

Also say if we close the account after 2 years of living together and I go to apply for a mortgage to buy a house are we still financially linked?

Any advice is greatly appreciated!

grumbler

Yes, any joint account creates financial association between the parties and their credit histories get linked.
I am not sure how long the association remains after the account is closed.

Generally, you don't need a joint account for renting. A single account can do the job perfectly.

And, BTW, it's either "effect on credit rating" or "affects credit rating". No offense intended.

InsideInsurance

bdh4wK wrote: »

Also say if we close the account after 2 years of living together and I go to apply for a mortgage to buy a house are we still financially linked?

In theory the disassociation happens as soon as the account is closed but the reality is that reporting cycles are long and sometimes things like this slip through the cracks. I had a joint account with someone and whilst Experian and Equifax had removed the link after it closed Call Credit still was reporting the link 18 months after the account was closed.

That said, once the account is closed, and probably after waiting 2 months to be safe, you can then file a notice of disassociation to help break the connection

CLAPTON

bdh4wK wrote: »

Evening all,

I'm due to start renting a place with 3 close friends next month; I need some clarification on how my credit rating will be affected if we open a joint bank account to pay rent / bills.

I’m not worried about getting into debt on the joint account itself, I’m fairly well off in comparison and could top up the account if needed. What I am worried about is if someone gets into debt in their personal account, will this affect my credit rating?

Also say if we close the account after 2 years of living together and I go to apply for a mortgage to buy a house are we still financially linked?

Any advice is greatly appreciated!

simply don't do it

virtually no advantages and could be a nightmare

zygurat789

bdh4wK wrote: »

Evening all,

I'm due to start renting a place with 3 close friends next month; I need some clarification on how my credit rating will be affected if we open a joint bank account to pay rent / bills.

I’m not worried about getting into debt on the joint account itself, I’m fairly well off in comparison and could top up the account if needed. What I am worried about is if someone gets into debt in their personal account, will this affect my credit rating?

Also say if we close the account after 2 years of living together and I go to apply for a mortgage to buy a house are we still financially linked?

Any advice is greatly appreciated!

When I did this each of us took on a utility in our own names and collected off the others. This had the advantage of building up a good credit history.

opinions4u

Work on the assumption of both account holders having the credit rating of the lowest common denominator.

Experian_company_representative

Once you link up, if circumstances change you will need to tell us. But if no link remains in the future it's quite easy to break it on your credit reports. Be aware though that while you are linked any credit you apply for, and perhaps any you have already, could be affected by the credit histories of the other people.

James

YorkshireBoy

Experian_company_representative wrote: »

Once you link up, if circumstances change you will need to tell us.

Not necessarily?

I believe the link may also be severed by the lender who created it. Perhaps you could confirm?

Could you also confirm whether you'd sever a link for someone who'd told you without previously buying a credit report (either statutory or subscription) because they already knew it existed?

JohalaReewi

bdh4wK wrote: »

Evening all,
I'm due to start renting a place with 3 close friends next month; I need some clarification on how my credit rating will be affected if we open a joint bank account to pay rent / bills.

Don't.


Just don't.


It will end in tears.