Joint Bank Account Credit Rating

mrecuk

I have a half decent credit rating (or so i'm told) and my partner does not (it's pretty poor). My partner wants to improve her credit rating (so that one day we may apply for a mortgage) but as you would expect, she is finding that she is being rejected for pretty much any sort of credit. My question is, if i was to add her to my existing current account, will it help her credit rating overtime or will any credit i have (for example credit cards) continue to improve my score only. I am aware that her poor credit rating will inevitably affect mine but i was expecting that. It would be a lot easier to have money going in and out of one account and as we would like to eventually apply for a mortgage i thought it would just be easier so i was planning on adding her to my account regardless, i just want to know if it will benefit her in anyway?

Linz2449

Hi.
Many years ago I found myself in this position. My boyfriend at the time had a current account and a credit card, I had neither and couldn't get any credit. He had me added to his current account, changing it to a joint account and he also requested an additional card for me on his credit card account. I then used the credit card account a lot and ensured I always paid the bills on time and always paid more than the minimum, he barely used his. They seemed to see the account was actually being used and managed via my card, as was our joint current account as he left me to deal with all our finances and after a couple of years, I was able to get a credit card in my own name and a mortgage. Once I had the mortgage, banks/credit cards/stores etc. basically approved any credit I applied for after that. So I do believe this will help your GF based on my past experience. As you said, you are already aware this may nagatively impact you to begin with as you will be financially linked but it will sort itself out over time. Hope this helps. Good luck.
Linz

DCFC79

Don't worry about what your scores are as lenders don't see them so are useless, its your credit history you need to look at.

Thrugelmir

What are the reasons behind your partners poor credit "score"?

Not applying for credit for a period of time may be a better approach.

CLAPTON

mrecuk wrote: »

I have a half decent credit rating (or so i'm told) and my partner does not (it's pretty poor). My partner wants to improve her credit rating (so that one day we may apply for a mortgage) but as you would expect, she is finding that she is being rejected for pretty much any sort of credit. My question is, if i was to add her to my existing current account, will it help her credit rating overtime or will any credit i have (for example credit cards) continue to improve my score only. I am aware that her poor credit rating will inevitably affect mine but i was expecting that. It would be a lot easier to have money going in and out of one account and as we would like to eventually apply for a mortgage i thought it would just be easier so i was planning on adding her to my account regardless, i just want to know if it will benefit her in anyway?

why does your GF have poor credit ?
what exactly do her credit files say?
is she on the electoral roll, employed etc?

what credit accounts has she applied for ?


why do you think your have a 'half decent' credit rating ?

CLAPTON

Linz2449 wrote: »

Hi.
Many years ago I found myself in this position. My boyfriend at the time had a current account and a credit card, I had neither and couldn't get any credit. He had me added to his current account, changing it to a joint account and he also requested an additional card for me on his credit card account. I then used the credit card account a lot and ensured I always paid the bills on time and always paid more than the minimum, he barely used his. They seemed to see the account was actually being used and managed via my card, as was our joint current account as he left me to deal with all our finances and after a couple of years, I was able to get a credit card in my own name and a mortgage. Once I had the mortgage, banks/credit cards/stores etc. basically approved any credit I applied for after that. So I do believe this will help your GF based on my past experience. As you said, you are already aware this may nagatively impact you to begin with as you will be financially linked but it will sort itself out over time. Hope this helps. Good luck.
Linz

how exactly did the CC company know you managed the CC account given your partner was the person solely legally responsible for paying and managing the account?

mrecuk

CLAPTON wrote: »

why does your GF have poor credit ?
what exactly do her credit files say?
is she on the electoral roll, employed etc?

what credit accounts has she applied for ?


why do you think your have a 'half decent' credit rating ?

I have used several creditors such as Experian, Equifax and so on to check my credit rating, all of which said i am very likely to get credit (i know that the so called score they show is meaningless as different companies give different scores). As for my partner not being able to get credit it's simply a case of a few years ago she had a mobile phone contract, lost her job and subsequently couldn't keep up with the payments and got into debt. Since then she hasn't applied for any credit until now. She is on the electoral roll and is in full time employment but i do believe it's the mark on her file from being in debt with the mobile phone company that's stopping her getting further credit.

Has anyone had experience using a credit card to build up your credit? I have my own but i wasn't sure if it was worth getting her some sort of starter credit card (which would obviously have a high interest rate because of her situation) to try and increase her credit rating?

owlet

If you have a joint bank account it will create a financial link between you. This will probably affect you in a negative way for a while & over time it should act positively for your partner.

Adding her to your credit card won't have any positive impact for your partner because you are the account holder and it will only report to your credit files.

The best bet for your partner is to get a credit card herself .
Try using a soft search with a company that offers that facility rather then the general soft searches on Experian & on this website.
Can't think off the top of my head which ones at the moment.

If she isn't eligible for the mainstream cards then Vanquis or Capital One are worth trying.

However (and this is important) she needs to just spend a small amount on the card & pay in full once the statement is generated. Setting up a direct debit to pay in full is the best way. The interest rates on these cards are horrendous but if used carefully they work to build up credit history.

A mobile phone contract will build history too. Just a sim only contract will do because they report to the CRAs too.

Dobbibill

mrecuk wrote: »

I have used several creditors such as Experian, Equifax and so on to check my credit rating, all of which said i am very likely to get credit (i know that the so called score they show is meaningless as different companies give different scores). As for my partner not being able to get credit it's simply a case of a few years ago she had a mobile phone contract, lost her job and subsequently couldn't keep up with the payments and got into debt. Since then she hasn't applied for any credit until now. She is on the electoral roll and is in full time employment but i do believe it's the mark on her file from being in debt with the mobile phone company that's stopping her getting further credit.

Has anyone had experience using a credit card to build up your credit? I have my own but i wasn't sure if it was worth getting her some sort of starter credit card (which would obviously have a high interest rate because of her situation) to try and increase her credit rating?

You say this was a few years ago, how many years? CRA's show information for 6 yrs.
Would it be worth them trying for a new mobile phone contract now? Some companies allow 'sim only' deals if you fail their initial credit checks. Which means you are contracted but they haven't parted with an expensive handset, they then review it after 6 months.

You say 'got into debt', was this only with the mobile phone company or was there other debts?

You may find that your 'half decent credit rating' takes a downward turn if you financially link yourself to someone who you know has a bad credit history.

Numerous horror stories on this forum, show that financially linking yourself to someone unnecessarily, is something to steer clear of.

As said by pp, what credit have they applied for recently? This info may help people advise.

owlet

If that one default is old & she hasn't had any credit since then, it may just be that any lenders looking will see a default and nothing else.

It's possible that she simply doesn't have enough history of credit on her file rather than the old default being the problem.

Was the default settled & how old is it?

YorkshireBoy

owlet wrote: »

Was the default settled & how old is it?

I don't think the OP has said the debt resulted in a default? Perhaps the OP could clarify?...was the account formally defaulted?...or was an AP marker applied?...or just a few months of late/missed payments recorded?


If it was a formal default, did she subsequently settle/satisfy the debt?