Will my fiancees credit rating impact mine

Weave

Hi


My fiancee has a bad credit rating and mine is good.


I have just had a new joint credit card issued to use for our forthcoming wedding expenses. The card is in my name with my fianc!e as a joint card holder. We have no other tied finance but we do live together.


Are our credit files now linked and likely to have a negative impact on me in the future?


The card was issued by M and S Bank without any problems.

owlet

Credit cards aren't joint. You are the card holder & fully responsible for the account.
This won't impact your credit file (from the point of view of his bad credit history) because it doesn't link you. Just don't get any joint bank accounts, loans, mortgage etc.

Weave

That's good to hear. Thank you Owlet.

Weave

UPDATE: I have just obtained a copy of my credit file and under 'Financial Associations' my fiancee is now listed as a 'Financial connection'. The connection has been created by the credit card company that issued her with the second card.

It would appear that having a credit card issued as a second card holder on a card in my name is enough to create an association after all.

Fingers crossed this does not cause us any problems when we apply for a new mortgage in my name.

GingerBob_3

Weave wrote: »

UPDATE: I have just obtained a copy of my credit file and under 'Financial Associations' my fiancee is now listed as a 'Financial connection'. The connection has been created by the credit card company that issued her with the second card.

It would appear that having a credit card issued as a second card holder on a card in my name is enough to create an association after all.

Fingers crossed this does not cause us any problems when we apply for a new mortgage in my name.

Interesting and worrying. Have you checked the T&Cs of the credit card to see if there's any mention of this type of totally inappropriate association being set up?

PaulW922

This is quote normal - if you give someone else access to your credit card account you are financially associated, even though the credit facility is not itself in joint names. Financial association is a loose term and doe snot just refer to joint accounts. And yes, if your partner has a poor history that will affect you too. You might want to revisit your decision if you are going for a mortgage....

GingerBob_3

PaulW922 wrote: »

This is quote normal - if you give someone else access to your credit card account you are financially associated, even though the credit facility is not itself in joint names. Financial association is a loose term and doe snot just refer to joint accounts. And yes, if your partner has a poor history that will affect you too. You might want to revisit your decision if you are going for a mortgage....

It might be "quite normal" in the eyes of credit providers, but it's a bullsh*t reason to lodge an association. I didn't know this was the case, but it seems it is. It's a bogus association, and typical of the CRAs to let this sort of thing happen. They also let utility companies create unwanted and unjustified associations.


A thought just struck me: a mate of mine has a son who's a financial nightmare. The son's got many defaults from phone companies, reneged on current account overdrafts and other bad stuff. My mate has always taken consolation from the thought that although the lad still lives at home he is financially independent. Not long ago he guaranteed a loan for his son (a stupid thing to do under any circumstances) so I'm guessing they now have a financial association?

owlet

It's not a joint account & the OP is the account holder & fully responsible for the account. It's not a financial association like a joint current account or mortgage is. Check your Ts&Cs out.

I'd be filing a disassociation through the CRA on the basis that no accounts/financials are joint (unless you agreed to it in the terms).

Hopefully someone will be along soon who knows more.

Weave

I am surprised and annoyed they have created the association between our credit files. I was listening to Martin Lewis on a 5 live consumer team show just two days ago (it was a podcast from a few months ago that I had not got around to yet) and he actually discussed this point and said it was joint accounts and mortgages that create the association.


I'm off to read to t's and c's from the card company to see if they mention this issue.


I don't see why we should be linked like this as its my credit card and my credit agreement. It's not like they can go after my fiancee if I don't make the payments.

Weave

The T&C's for the card say - "If your application is for a joint account or borrowing, an “association” linking your financial records with those of your fellow applicant(s) will be created by the CRAs."


This does not seem clearly defined to me as it is not a 'joint account' or 'joint borrowing'. It is me doing the borrowing and the account is in my name. My fiancee is just a card holder and not responsible for the debt so there is no risk to the card issuer from her.


Not impressed! I seriously hope this does not scupper the chance of me getting a mortgage in a few months time.

GingerBob_3

Weave wrote: »

The T&C's for the card say - "If your application is for a joint account or borrowing, an “association” linking your financial records with those of your fellow applicant(s) will be created by the CRAs."


This does not seem clearly defined to me as it is not a 'joint account' or 'joint borrowing'. It is me doing the borrowing and the account is in my name. My fiancee is just a card holder and not responsible for the debt so there is no risk to the card issuer from her.


Not impressed! I seriously hope this does not scupper the chance of me getting a mortgage in a few months time.

I strongly suggest you cancel this card immediately then file a notice of disassociation with the CRAs (all three of them).