Joint account may ruin my credit rating

Superslug

I have a very good credit rating - checked experience and have had no problems gaining credit when needed.

Recently partner has been accused of running up £8,000 on a credit card 5 years ago and not paying it off. We are challenging it but have been told in last letter that I may become involved as we share a joint account even though this isn't the one in debt.

I don't know whether to close our joint account just in case as I hope to move house this summer and will need a solid credit score to get the mortgage.
Quandary is our joint account is only one my partner has (sole acct frozen during investigation) and until this credit card debt accusation is resolved there would be no way he would then get a new account. He works freelance and needs an account to be paid.

How badly would my connection via the joint account affect my own credit rating?

tinkerbell28

Did they run up the debt? They need to be honest here. If it's ID fraud then it will sort itself out.

If they did rack it up. Then yes chances are they've decided on inforcement action before 6 year is up.

Why was their account locked down all of a sudden? Is that a recent thing? Is there something they are not telling you? As usually a bank can offset debts against accounts. So you've defaulted on a loan/card. They can raid your current account. This will be an issue for you if you're accounts are at the same bank.

Something doesn't seem right here, it's like you don't have the full story. I'd be looking at removing them from your account and doing a disassociation for mortgage time at least.

jamesd

He can presumably set up an account at any other bank if this does not yet show up on his credit report.

You can prevent your own money from becoming involved by using an account opened in your sole name. That way they can't claim that any of the money in the account is his, as they might try if it was a joint account. naturally he should not use your account for his business purpose.

The joint account will still cause your finances to be linked for six years, so no point in closing it unless you're also going to say that you no longer have any financial association with him, so such links should be removed. Not really likely to be so unless you mean business partnership rather than personal partnership.

If the mortgage application is in your sole name and you can pass affordability tests on your own the effect on a mortgage application will be greatly reduced. It's something you should mention when applying with a description of the events and that it's disputed, so there is no suspicion of concealment or wondering on the part of the mortgage lender. Then they get to choose to proceed normally, wait for the dispute to be resolved or decline.

tinkerbell28

If your only financial link is the joint account. You CAN file a notice of dissociation if they let you close it or remove him from the account.

I would certainly try and do this. Plenty of partners and married couples have no financial association. If you do not hold an ACTIVE joint product you can get the link removed.

It seems very odd though. Say they've got a credit card with bank A. Then an account with bank A. I'm not sure why it would take 5 years for them to freeze it.

I'd make sure you're getting the whole story and check it is not a recent thing or suspected fraud either as a victim or culprit.

Tiddlywinks

Accused? What an odd choice of words.

Did your partner borrow this money? If yes, then that is a fact and you will need to manage the consequences.

If not, then that is another matter...

Superslug

We thought it was mistaken identity but now believe it to be ID fraud. Have contacted fraud department so need to see how bank want to progress while this takes place.

Tinkerbell28: It is the only banking connection we have, we have both names on some bills, would this count as a financial tie?

tinkerbell28

Superslug wrote: »

We thought it was mistaken identity but now believe it to be ID fraud. Have contacted fraud department so need to see how bank want to progress while this takes place.

Tinkerbell28: It is the only banking connection we have, we have both names on some bills, would this count as a financial tie?

Yep if they report to the credit files. Are you sure you have the whole story? Absolutely sure? Freezing an account now for an account which has presumably been rogue for 5 years seems a bit off.