Joint bank account

Suzie1987

Hi everyone,

I got married this year and me and my hubby want to open a joint account but we both have terrible credit and the normal banks (Barclays, HSBC etc) wont allow us to open a joint account. Has anyone got any suggestions of a joint account that we can use that isn't going to credit check us but isnt going to be incredibly expensive. Some general advice and help in this matter would be really appreciated

eskbanker

If you each have sole accounts at the moment you could enquire as to whether either bank would allow another name to be added.

Alternatively have a read through the MSE guide to basic accounts intended for those with credit issues.

downhillfast

My partner and I got around this problem when I had a bad credit rating by us both having separate Barclays current accounts (mine a basic one as I was a discharged bankrupt) and then having a joint 'savings' account with them. 'Savings' accounts are not credit checked. We both had access to the savings account with internet banking and could move money instantly between accounts.

With a bad credit history it wouldn't be a very good idea for you to have a joint current account anyway, as you will then be financial associates in the eyes of credit reference agencies. If one of you recovers their rating quicker than the other you will still be dragged down by that association. Savings accounts do not count as financial association. :beer:

LplateSaver

downhillfast wrote: »

With a bad credit history it wouldn't be a very good idea for you to have a joint current account anyway, as you will then be financial associates in the eyes of credit reference agencies. If one of you recovers their rating quicker than the other you will still be dragged down by that association. Savings accounts do not count as financial association. :beer:

Can you explain how this works as I have a default from a year ago (which has caused me to be rejected from bank accounts) and the bank suggested we apply for a joint account as OH has good credit but I said no as I didnt want to lower his score but it seems silly that a default from a year ago would do this when I pay phone/broadband/cc on time and have a low credit usage etc. Why would a past default of mine have that affect on him? Is a financial association agreeing to take on another persons debt? I might try again after 3 take payment for the debt.. if they ever agree to.. but that's another story.

downhillfast

LplateSaver wrote: »

Can you explain how this works as I have a default from a year ago (which has caused me to be rejected from bank accounts) and the bank suggested we apply for a joint account as OH has good credit but I said no as I didnt want to lower his score but it seems silly that a default from a year ago would do this when I pay phone/broadband/cc on time and have a low credit usage etc. Why would a past default of mine have that affect on him? Is a financial association agreeing to take on another persons debt? I might try again after 3 take payment for the debt.. if they ever agree to.. but that's another story.

The default on your account will put banks off from allowing you an account where any credit could be obtained ie a current account with an overdraft facility. Although it was a year ago it will still flag up (potentially affecting you until it drops off your credit report after 6 years of the default date).
A financial association on a credit report is basically a link to another person with whom you have a credit facility ie credit card, overdraft etc - should one person fail to keep up with repayments then the other is responsible for them. By having an association with someone with a bad credit history you are a higher risk for funds potentially not being recoverable in the future (in the CRAs eyes anyway). I would say that the bank gave you very bad advice if they were encouraging you to open a joint 'currrent' account... if it were a savings account then that would be a different matter.

Have you tried applying for a basic Barclays account? Or a Coop cashminder - bankrupts are able to get these account so unless you have debts with either bank already then you would probably stand a good chance of getting one.

Suzie1987

Ok thanks for all your suggestions

LplateSaver

downhillfast wrote: »

The default on your account will put banks off from allowing you an account where any credit could be obtained ie a current account with an overdraft facility. Although it was a year ago it will still flag up (potentially affecting you until it drops off your credit report after 6 years of the default date).
A financial association on a credit report is basically a link to another person with whom you have a credit facility ie credit card, overdraft etc - should one person fail to keep up with repayments then the other is responsible for them. By having an association with someone with a bad credit history you are a higher risk for funds potentially not being recoverable in the future (in the CRAs eyes anyway). I would say that the bank gave you very bad advice if they were encouraging you to open a joint 'currrent' account... if it were a savings account then that would be a different matter.

Have you tried applying for a basic Barclays account? Or a Coop cashminder - bankrupts are able to get these account so unless you have debts with either bank already then you would probably stand a good chance of getting one.

I kind of get it now, will a satisfied default still have same effect? does a financial association never work to benefit one or both of the parties eg pull me up?
I have tsb and nationwide 5% accs it's just the Lloyds banking group that don't want me