Do basic bank accounts report to credit agencies

Robinwren

We are looking to open a joint account for bill sharing but my credit history is good, my husband's not so good. Do the basic bank accounts report to the credit agencies? We need an account with debit cards for food shopping and the like.

davethorp

If your credit rating is good but your husband!!!8217;s isn!!!8217;t so good I would strongly caution against opening any kind of joint account if you don!!!8217;t already have one.

A joint account will create a financial link with the credit reference agencies which will be reported. This will affect your ability to obtain credit as your husband would be searched for any sole applications you make due to the financial link

It can be hard to remove the link too as I found out when my previous relationship broke down last year and it took months before the link was removed and I could disassociate from her as she was defaulting on her debts

Robinwren

Hi Davethorp yes I'm well aware of what you have said hence asking if basic accounts report to agencies.:D

davethorp

In that case the answer is yes they do. At least every basic account I!!!8217;ve had previously has done

Anthorn

Robinwren wrote: »

We are looking to open a joint account for bill sharing but my credit history is good, my husband's not so good. Do the basic bank accounts report to the credit agencies? We need an account with debit cards for food shopping and the like.

In theory since there is no credit with the basic bank account the bank(s) should not report to the CRAs nor do a hard credit search. However I know that sometimes they do and sometimes they don't. So I suppose that it's a matter of pot luck and might also be due to the bank(s) making a mistake in reporting to the CRAs.

For some banks you cannot apply directly for a basic bank account. You have to first apply for a different account and then they will offer a basic bank account if that's their only offer. When you apply for a different account which is not a basic bank account you give the bank permission to do a credit search.

Virgin Money allow direct applications for their Essential current account which is a basic bank account. But you'll need a Virgin Money store within striking distance.
https://uk.virginmoney.com/virgin/current-account/essential-current-account.jsp

As previously stated, avoid a joint account because your partner's bad credit will be linked with yours. In fact I would advise that even if both partners have a perfect credit history because we don't what the future holds.

ValiantSon

Robinwren wrote: »

We are looking to open a joint account for bill sharing but my credit history is good, my husband's not so good. Do the basic bank accounts report to the credit agencies? We need an account with debit cards for food shopping and the like.

I assume that you don't have a joint mortgage or any other joint financial products, because if you do then your credit files are already linked.

Robinwren

No we don't have any linked accounts or products. It would be a little easier to have a joint account for joint spending but not at the expense of a good credit record.

System

All new basic accounts do report to CRAs - some old ones don't.

Coventry BS offer a savings account with an ATM card and Direct Debit facilities.
This is probably your safest bet.

boo_star

Anthorn wrote: »

In theory since there is no credit with the basic bank account the bank(s) should not report to the CRAs nor do a hard credit search. However I know that sometimes they do and sometimes they don't. So I suppose that it's a matter of pot luck and might also be due to the bank(s) making a mistake in reporting to the CRAs.

For some banks you cannot apply directly for a basic bank account. You have to first apply for a different account and then they will offer a basic bank account if that's their only offer. When you apply for a different account which is not a basic bank account you give the bank permission to do a credit search.

Virgin Money allow direct applications for their Essential current account which is a basic bank account. But you'll need a Virgin Money store within striking distance.
https://uk.virginmoney.com/virgin/current-account/essential-current-account.jsp

As previously stated, avoid a joint account because your partner's bad credit will be linked with yours. In fact I would advise that even if both partners have a perfect credit history because we don't what the future holds.

Basic accounts can be put into an unauthorised overdraft via a debit card under certain circumstances.

That’s probably why they still report to CRAs.

agatham

I think it would be best for you to speak to the people in the bank you are opening the account directly. They might be able to give a clearer picture.

Anthorn

boo_star wrote: »

Basic accounts can be put into an unauthorised overdraft via a debit card under certain circumstances.

That’s probably why they still report to CRAs.

Exactleeeee !

But basic bank accounts should not have overdrafts but they do. They also have arm and a leg overdraft fees unless the bank specifically states no overdraft fees, for example Virgin Money Essential Current Account.

No wonder that prepaid bank accounts and cards with the promise of no overdraft and no overdraft fees are still alive and kicking !