Joint Account Help

Jjamie

I am considering getting w joint account with my partner. I’m self employed but also classed as disabled. My partner works full time.
I have a reasonable credit score and his is rubbish.

Would having a joint account bring down my credit score?

Ben8282

As your credit score is meaningless, not seen by anybody except you and not a factor in lenders decisions when making credit decisions, if your credit score drops or not is of no consequence or importance whatsoever.
Opening a joint account may create a financial association between you by having a joint credit product. In such a case, when you apply for credit in the future, lenders may also search your partner's credit files and take any adverse information contained in them into consideration when you apply for credit.

Jjamie

Thank you! I think a joint account would make things easier on him, so I could manage his finances better for him

colsten

Your credit is is not seen by any lenders - it is merely an indicator for yourself of how likely you would be to get credit. If you are not planning on applying for credit (credit card, loan, bank account, overdraft, mortgage etc), it doesn't matter.

However.

Once you have a joint account, you have a financial association with the other account holder. Any of your credit applications will be assessed based on not just your own, but also your partner's credit worthiness.

In addition, you will be liable for any debt on the joint account. Your partner could run up a big debt, and you could be left with settling it. We keep seeing post here from people who are in precarious situations because something went wrong with their joint accounts.

Worth reading this: https://www.moneyadviceservice.org.uk/en/articles/joint-accounts

colsten

Jjamie wrote: »

Thank you! I think a joint account would make things easier on him, so I could manage his finances better for him

Your partner could sit with you once a week looking at his bank account, couldn't he?

Out of interest, how would you manage his finances if you had a joint account? He could still spend the money he spends now, plus he could now also spend yours. And you could start having rows about money.

Wouldn't it be better if he started budgeting, perhaps with the help of an app (and yours, of course)? Have a look at Yolt, or Starling etc for budgeting apps

born_again

Jjamie wrote: »

Thank you! I think a joint account would make things easier on him, so I could manage his finances better for him

Except that he will still have a debit card he can spend on.... So if he blows the account balance. You are just as liable to pay it off as him.

Unless you cut it up and simply transfer a amount of pocket money over to his own bank account..

Jjamie

I’m not planning to actually put any of my money in it, just his wages and leave in enough for the bills and transfer him an amount over to spend money. If that makes sense

colsten

As long as he has a debit card / access to the joint account (even through a Bank branch or by phone), he can take money from the account without your agreement. You will be jointly responsible for any overdrafts on the joint account. You will get a black mark on your credit file (as will he on his) if e.g. a DD bounces, or if there's an overdraft.

Why can't he transfer a fixed amount for bills each month from his account to yours, as soon as his wages come in? If that would not be a reliable arrangement, a joint account is probably also not a reliable arrangement.

colsten

I see from one of your other posts that you already have a financial association with your partner on your credit file, presumably because you made some inquiries about a joint mortgage. If you apply for any credit now, this financial association will be taken into account.

Zero_Sum

Just to throw something else into the mix...

My OH is in a bit of a mess financially. Tried to help her play the system a bit & applied for co-op account for the free money (no OD applied for) and got turned down.

Currently dont have joint accounts, as im a bit wary if we do it'll get denied, then look badly for me as ill have a failed account application against my name for someone elses fault.

colsten

Zero_Sum wrote: »

Currently dont have joint accounts, as im a bit wary if we do it'll get denied, then look badly for me as ill have a failed account application against my name for someone elses fault.

You will not have any failed applications showing on your credit file, for the simple reason that this will not be recorded. A search will show on your credit file, that's all, and that search won't tell anyone whether you applied for a sole or a joint account, or what the result of your application was.