Advice on couples affecting each other's credit rating please

charhen19

So, just a quick question.

I bank with Barclays and in the last year I took out a loan over a year to reduce my o/d from £1,850 to £150 and paid it each month without fail. When it got to around £300 I applied for a loan extension of £3,000 over 18 months to pay off a credit card (after being advised I was some sort of premium customer at Barclays and top rated). The application got rejected with a reason of the fact that my current account regularly used my o/d. I appealed on the basis that I reduced my o/d over a year, regularly paid my loan and although the o/d was used, I got paid weekly and so every Friday I would come back into the black. I also reduced the amount to £2500 and upped the period to 4 years (with a view to paying it off early).

Now I am confused as to why it got rejected. I have never defaulted on a payment apart from a phone bill maybe ten years ago. The only thing I can think of is that my girlfriend has a DMP and I live in her house and we have just opened a joint savings account? (about two weeks before my application).

If it is for the above reason – how do I correct my credit rating again or is it now permanently up the creek until the DMP is complete and then 6 years after?

charhen19

Should say I posted this for my bf so ignore the signature, he has no debt.

Tixy

A joint savings account shouldn't create a financial association on your credit files (as it isn't a credit account).

You could check you credit files to ensure that there is not a financial association showing though (and if there is then file a notice of disassociation).

If there is not a link on your credit file then they won't have looked at her files when you made the application so that won't be why ou were declined.

It could well be that is it just because you are using your overdraft regularly as they have said. Was the loan application with the same bank as your current account?

As this relates to a credit card debt have you considered looking to see if you can get accepted for a new card with a 0% promotion on balance transfers. That might be a sensible option.

charhen19

Thanks for your advice, will look into it further.