To get a joint account or not?

Silver:Courage

My partner and I are about to move into a rental property together. Ideally we'd like to get a joint account where we can both pay in monthly, ideally overpaying what we need so we can start saving to get a mortgage in the next couple of years.

I'm overly cautious and so we did a credit check and whilst I came out with an excellent score, due to various reasons, my partner has a poor score. he doesn't have an overdraft but does have a small credit card debt - on a 0% balance.

I was hoping to get some advice of the best things to do.

Thanks

headachesrus

My DD is in this exact situation with her boyfriend. They wanted to buy but only she can get a mortgage. Her mortgage advisor said under no circumstances to do anything financially joint as it would wreck her rating. They will look at it again in 3 years when his rating is hopefully better.

GingerBob_3

headachesrus wrote: »

My DD is in this exact situation with her boyfriend. They wanted to buy but only she can get a mortgage. Her mortgage advisor said under no circumstances to do anything financially joint as it would wreck her rating. They will look at it again in 3 years when his rating is hopefully better.

This is probably good advice. Here's some more:

If you're moving in with someone be very careful that utility companies and the like don't create an unwanted financial association between you. Water companies are renowned for doing this. When registering with these disreputable organisations absolutely only ever do so using one name. Ask the landlord not to give your details to the companies in advance of you moving in - you can deal with them directly; be very careful on this last point.

When you sign up for gas/water/elec do not provide any personal information other than your surname. They will ask for DoB, previous address and other stuff; don't provide it.

Experian_company_representative

Hi Abidarling,

It sounds like you are being sensible checking your reports first!

If you do decide to take out a joint account (or even just apply for one) then a financial connection is likely to be recorded.

When lenders look at your report they will also look at the report of anyone you are financially connected to, so your partners credit report could then affect future applications.

Our Credit Cafe video covers this in more detail here.

Kind regards
Neil

GingerBob_3

Experian_company_representative wrote: »

Hi Abidarling,

It sounds like you are being sensible checking your reports first!

If you do decide to take out a joint account (or even just apply for one) then a financial connection is likely to be recorded.

When lenders look at your report they will also look at the report of anyone you are financially connected to, so your partners credit report could then affect future applications.

Our Credit Cafe video covers this in more detail here.

Kind regards
Neil

(or even just apply for one) - this is a good example of the dysfunctional credit reporting industry. In effect you APPLY to become associated so it's then taken that you ARE associated, even if your application fails or is withdrawn. Outrageous!

Just to clarify the second point, you may not be financially connected at all. It's just that some merchant thinks you are - so you are!

Silver:Courage

Thanks GingerBob,

Please can I confirm that you're saying that we should have both our names on any utilities bills either - not just on a joint account?

How quickly can your credit rating change? Ideally we do want to get a joint account at some point in the near future. He's also just come out of a divorce, how do we make sure that he's no longer connected to his ex financially? Do we need to declare that to anyone to ensure their ratings are no longer linked?

Thanks

GingerBob_3

abidarling wrote: »

Thanks GingerBob,

Please can I confirm that you're saying that we should have both our names on any utilities bills either - not just on a joint account?

How quickly can your credit rating change? Ideally we do want to get a joint account at some point in the near future. He's also just come out of a divorce, how do we make sure that he's no longer connected to his ex financially? Do we need to declare that to anyone to ensure their ratings are no longer linked?

Thanks

Even if you have a joint account - say a joint current account - it's always a good idea to have all bills in just a single name (although that doesn't necessarily mean you can avoid joint liability). If you find there's already a financial association logged on the CRA's files linking either of you to someone else, you can file a notice of disassociation with all three of the CRAs to get it removed. You can do it online. It really is a diabolical system. If there's no joint accounts why should there be any associations (rhetorical question). If the CRAs operated in a fair manner the only financial associations would be those proven, and not those assumed.

How quickly can credit ratings change as a result of this? Not sure, but I guess it would be as soon as an association was assumed by a merchant and logged with the CRAs - that could be up to a month.