Joint Bank Account Question?

Joe88T

Hello Guys and Girls,

Wondering if you could help me please. Me and My partner (no-cohabiting) are thinking about opening a joint bank account, whilst also keeping our own current accounts.

The idea is that we both pay a set amount each month into the account and that is what we use on our entertainment for the month between us. The idea is to set a strict budget for us both whilst we can then sort out savings etc on our own side.

The reason we have decided to do it this way is that our situations are different so our saving pots and monthly outgoings are different at this time. I have a moderate size of unsecured debt and recently moved house, which has seemed to knock my credit score (all bill gets paid, i have no IVA or CCJ). on the other side my partner's outgoing are minimal and credit score very good. we are both professionals, and have secure jobs.

We are looking to get a mortgage in the next year to two, however i don't want my weakish credit score (i am sure after a few months on the electoral role at my new address it will rise) to effect her, we are not planning on applying for any overdraft r any credit cards or any form of credit with the account or in joint names. The first credit we would have together is the mortgage.

So after my boring background, the question is to what extent will it effect us having a joint account?

we have both discussed at length the commitment it is and the responsbility if it went worse case. our relationship is very strong.

Thank you for your help

Joe

fromtheshires

Ignore the scores as they mean nothing. As long as you are both aware that being financially linked means a default appearing on your account will affect their credit worthiness and vice versa. Could you not just open a savings account each and put your own money into it until ready for a mortgage? That way you canmachieve the same goal without the need of a joint account.

Joe88T

Hello,

Thank you very much for your help,

the idea was for us both to have a card so we can regulate our monthly spending on entertainment. as we are both saving at different rates.

so a default being that the missed a payment or is it also a late payment?

p.s just checked my score on equifax and it has dropped just below national average.

Many Thanks
Joe

fromtheshires

technically a default is when you haven't paid and there is a clear indication that they won't be recovering the money. Late and missed payments will also affect each other's score though too.
When you,say entertainment, do you class that as Netflix etc or nights out, drinking and so forth

Joe88T

Hello,

As we are trying to save for a mortgage we have decided to stay living with parents, as our work demands little time during the week (as most peoples do), we tend to go out at the weekend, so might be for meals, drinks, cinema and so on. there would be no direct debits, or constant payments coming out the account. I am certainly open to any other way, it was just the ease of having an account where we both have a card, we both know where we stand etc.

Many Thanks
Joe

Dobbibill

As you will be pulling money out for entertainment, why don't you put that in a pot/jar/envelope each month in cash.

Having a joint account will financially link you, meaning that some lenders will credit check both of you if one person applies for a product.

Ignore your score on Equifax. They do not provide bank accounts, credit cards, loans or mortgages, therefore their score is irrelevant/pointless/a waste of time. No one else sees the score they create, except them and you.
As a side note, if you paying a monthly fee for Equifax ditch it and get your information FREE from Clearscore, it's exactly the same data.