Help- Got declined for a joint current account!

SarahRob

Hey!

Not having a great weekend.

Yesterday my partner and I had an appointment at my bank- Halifax- for him to be added to my ultimate reward current account. Bit background- we checked our credit ratings around a month ago and mine was good and partners was fair, so we assumed that was fine. Basically at this appointment the application was declined however Halifax were unable to give us a reason.

We were hoping to buy our first house next year, but this seems even further away now. Today we went on Experian for a credit rating, mine was excellent at 995, my partners was very poor at 540. We have racked our brains to think why his would be so bad- In December last year my partner received a letter from Natwest saying his credit card debt had been passed over to a collection company (even though he was paying the min amount and not missing payments), so he had a payment plan set up with this company for £70 per month which he has never missed, we thought this could be the reason. Yesterday he called them up and he paid off the remaining balance which was £1000.

Also his gym membership just stopped taking payments a month or so ago and he received a message saying they couldn't take the payment, he's always had money in there... there has never been a point where he wouldn't of had enough. As the lazy person that he is, he ignored the message.

Is there anyway that if we prove to the gym membership company that he had sufficient funds in his bank they would take away the mark they must have put against his name. Also now he has paid off the debt his credit rating should go up surely?

Were now thinking next year won't be possible for a mortgage, which I am coming to terms with. How long will it take for him to get his credit rating back up to a good level? I understand taking out a credit card and only putting a small amount each month and paying it back fully would help, however we don't want to apply for a credit card and for it to be declined.

Any advice or help would be appreciated.

Many thanks,

Sarah

YorkshireBoy

Did NatWest place a default on his credit card account, and is this shown on his Experian, Equifax, and CallCredit files?

If they did, then that'll be there for 6 years, alongside the missed payments to the Gym and a possible arrangement to pay (AP) marker with the DCA.

You should wait a couple of months and then check all 3 credit reports to see if Halifax financially associated you due to the application search made (assuming you've no other linked accounts such as loans, current accounts, etc?).

GothicStirling

The defaults that led to the debt being handed over to the collection agency will remain on his credit score for 6 years. However, a score of 540 is not very 'poor', it is well above the national average. I do wonder though, whether the bank thinks you both are now at the brink of financially over-extending yourselves.

SarahRob

We have just checked Equifax, there are a number of defaults going back years on his account, also it's saying he's not registered on the electoral role, even though we are and we voted in the last election- We moved in January 2017 and registered straight away. Will this have a massive impact?

SarahRob

The credit score in Equifax is 330 so nearly out of 'poor'.

I'm not sure how the bank could think that, as we both have savings, no credit cards or loans. And its just adding him to a current account?

Dobbibill

The first thing to do is check both your reports with the main 3 CRAs.

This can be done free using the details below, to see the reports from the agency in brackets.

MSE Credit Club (Experian)
Clearscore (Equifax)
Noddle (Call Credit)

Look at the data rather than the score. You will be able to see if there is an AP, missed payments, defaults, CCJs for any relevant accounts.

SarahRob

** I've check my credit account on Equifax and I'm on the electoral role, but partner isn't.. But I sent the forms at the same time AND we voted together at the same time. How could this happen?

Thrugelmir

SarahRob wrote: »

I'm not sure how the bank could think that, as we both have savings, no credit cards or loans. And its just adding him to a current account?

If you had savings then why?

so he had a payment plan set up with this company for £70 per month which he has never missed

Not just your the score that matters. It's how personal financial affairs are maintained. This tells a bank much about a potential applicant and the type of person they are.

boo_star

SarahRob wrote: »

The credit score in Equifax is 330 so nearly out of 'poor'.

I'm not sure how the bank could think that, as we both have savings, no credit cards or loans. And its just adding him to a current account?

He almost certainly has a default and that’s a pretty big no-no for most current accounts, particularly if it’s recent.

Having savings (which aren’t reported anyway) would actually be a negative factor IMO. He’s saving money when he’s in debt? Why isn’t he paying it down?

cjmillsnun

First off. Ignore the score. It’s meaningless apart from indicating a potential problem in the report. The reports are important. These are what lenders see.

Next as indicated above, get full reports for both of you from all 3 major CRAs using the links given.

Go through the reports with a fine tooth comb. Get any inaccuracies corrected, pay any overdue debts down. Make sure all addresses are up to date.

As far as any defaults go, time is the healer. Wait for a few months after clearing defaults and things will slowly improve. After 6 years from the initial defaulting date, a default drops off the file altogether unless a CCJ has been lodged and not satisfied within 30 days in which case it is 6 years from the date of judgement.

Candyapple

SarahRob wrote: »

We have just checked Equifax, there are a number of defaults going back years on his account, also it's saying he's not registered on the electoral role, even though we are and we voted in the last election- We moved in January 2017 and registered straight away. Will this have a massive impact?

Defaults will fall off 6 years from the date they are applied.

If the gym has reported the debt back to the credit reference agencies then regardless if he has repaid it now, there's nothing you can do to remove the late payment markers as they are factual reporting. They will stay on file for 6 years.

It also doesn't matter that he has now cleared the Natwest debt - that too will remain on file for 6 years.

Sounds like your partner's laziness may have cost you getting a mortgage.