Joint bank account questions

Chris4

Hi guys,

I live with my partner. Previously we took turn purchasing joint things individually (food, travel, etc.). We then decided to use one of my credit cards as a "joint card" and she transfers me half. This is still a bit of a pain, as she's not paying me on the credit card bill date, so I manually have to calculate the cost between when she last paid me and today (I should probably sort that).

I think the easiest option would be split account that we both put money into (don't worry, there's no concern with running off with it). I've read the MSE article on joint accounts, and previously avoided it because I'm concerned my credit rating would take a hit (mine is higher than hers), but I'm warming to the idea for simplicity's sake. However, after monitoring my credit rating on the free sites (noddle, clearscore) over the last year or so, my credit rating took a hit for the first time this month after applying for 'too much credit' (BT broadband).

• Do you think a joint account is the best option for us?
• Would requesting no overdraft (and ensuring we do not go into negative figures) mean our credit ratings would not be tied?

Thanks.

bigadaj

Your credit score number is made up and useless, it means little in relation to banks, credit etc

If you don't want to be financially associated there is no need to be th a joint account, I can't see hat us wrong with a simple monthly transfer from one bank account to another.

You get your credit card statement and then around three weeks before you have to pay it, so there's plenty of time to arrange th money to be moved.

CLAPTON

Chris4 wrote: »

Hi guys,

I live with my partner. Previously we took turn purchasing joint things individually (food, travel, etc.). We then decided to use one of my credit cards as a "joint card" and she transfers me half. This is still a bit of a pain, as she's not paying me on the credit card bill date, so I manually have to calculate the cost between when she last paid me and today (I should probably sort that).

I think the easiest option would be split account that we both put money into (don't worry, there's no concern with running off with it). I've read the MSE article on joint accounts, and previously avoided it because I'm concerned my credit rating would take a hit (mine is higher than hers), but I'm warming to the idea for simplicity's sake. However, after monitoring my credit rating on the free sites (noddle, clearscore) over the last year or so, my credit rating took a hit for the first time this month after applying for 'too much credit' (BT broadband).

• Do you think a joint account is the best option for us?
• Would requesting no overdraft (and ensuring we do not go into negative figures) mean our credit ratings would not be tied?

Thanks.

how will a joint account solve the problem of her not funding the a/c on time?

just get her to pay the CC amount two weeks before due date

Laurensalive

Personally I would keep a single person account. If the relationship breaks up this would mean the account may be blocked from use until things are resolved. I know difficult to see this. But I have been through it.

diamonds

Easier for who ?


Personally from experience if one party is better dont baby the other, get them to put the joint things for home etc in their name and transfer 50% of the money each month, force education on them about money and bettering their credit file. Do NOT encourage them thats everythings ok I have a joint account now, that second wage may not always be there.

Dobbibill

Chris4 wrote: »

Hi guys,

I live with my partner. Previously we took turn purchasing joint things individually (food, travel, etc.). We then decided to use one of my credit cards as a "joint card" and she transfers me half. This is still a bit of a pain, as she's not paying me on the credit card bill date, so I manually have to calculate the cost between when she last paid me and today (I should probably sort that).

Thanks.

Hi Chris,

This is a good idea. Iron out a few teething problems and it will work. Eg- get a separate account for joint spends, you should have a good idea what the budget is if you have done this for a few months, it doesn't need to be a joint account, just a different account or bills account. Or move the statement date. Why are you working out from then till today? Can you do statement is in, bill is x amount, 50% into bills account for it please?

• Do you think a joint account is the best option for us?
• Would requesting no overdraft (and ensuring we do not go into negative figures) mean our credit ratings would not be tied?

No, there is no need for a joint account.

No, you will be financially linked, even without an OD. Think about it, either of you could add one a few months later.

Chris4

bigadaj wrote: »

Your credit score number is made up and useless, it means little in relation to banks, credit etc

Are you sure? What do they judge you on then? I understand it's not an almighty number that is the sole judge of whether you are accepted for credit, but I'm sure it's not as useless as you describe.

Laurensalive wrote: »

Personally I would keep a single person account. If the relationship breaks up this would mean the account may be blocked from use until things are resolved. I know difficult to see this. But I have been through it.

Thanks for your advice.

diamonds wrote: »

Easier for who ?

Personally from experience if one party is better dont baby the other, get them to put the joint things for home etc in their name and transfer 50% of the money each month, force education on them about money and bettering their credit file. Do NOT encourage them thats everythings ok I have a joint account now, that second wage may not always be there.

For us both, I had envisaged. Both have a card, both able to pay for 'joint' things on the go and bills come out of the account. I don't have to ask for the money each month, the other doesn't have to transfer it. But if transferring is the better option as everyone is suggesting, then that's fine. I can absolutely line up transfer payments for the credit card bill date, it just seemed easier if we had a joint account and that was why I wanted to ask.

Dobbibill wrote: »

Hi Chris,

This is a good idea. Iron out a few teething problems and it will work. Eg- get a separate account for joint spends, you should have a good idea what the budget is if you have done this for a few months, it doesn't need to be a joint account, just a different account or bills account. Or move the statement date. Why are you working out from then till today? Can you do statement is in, bill is x amount, 50% into bills account for it please?



No, there is no need for a joint account.

No, you will be financially linked, even without an OD. Think about it, either of you could add one a few months later.

bigadaj wrote: »

If you don't want to be financially associated there is no need to be th a joint account, I can't see hat us wrong with a simple monthly transfer from one bank account to another.

You get your credit card statement and then around three weeks before you have to pay it, so there's plenty of time to arrange th money to be moved.

CLAPTON wrote: »

how will a joint account solve the problem of her not funding the a/c on time?

just get her to pay the CC amount two weeks before due date

Yes you're right I shouldn't have had my partner transfer mid-way through a statement. I've lined the next one up for the next statement date, so it will certainly be easier that way. If this is the best option for us, then I shall stick with it. Thanks.

rtho782

Chris4 wrote: »

Are you sure? What do they judge you on then? I understand it's not an almighty number that is the sole judge of whether you are accepted for credit, but I'm sure it's not as useless as you describe.

Yes, everyone is sure.

No lender sees this "score", from any credit reference agency.

They see the data, and they make up their own critera for the data. One lender might decide that you can make 6 credit applications in 12 months, the next might decide you can make 18 in 12 months, but no more than 1 in the last 3 months, or whatever other criteria they decide to invent.

Every lender has a different opinion of what makes a good customer for them and the score is the credit reference agencies opinion of what would make a good customer, but the credit reference agency are not a lender and this opinion is not shared with anyone and nobody lends money based on it (as they can't see it) so it is utterly meaningless.