Application Form Qs (Everything is split 50:50!)

csmith848

Hi!

I'm a homeowner (with a mortgage), both of which I share with my girlfriend 50:50.

My credit report shows the only red flag as the amount of disposable income they think I have - to be clear, I don't feel like I'm struggling at all 
Applying for 0% purchase credit cards is proving a pain (I assume because of the above).

1) Should I select 'living with partner' as my marital status?
2) Should I enter our total mortgage payment, or 50% of it because I split it equally with my girlfriend?

Thank you!
Calum

Sandtree

1) Does she live with you?

2) Is the mortgage in joint names?

Ultimately you need to be able to look the counter fraud department in the eye and be able to tell them convincingly that you answered the question as best as you can based on your understanding inc any help text (of which there is little compared to insurance questionnaires etc)

csmith848

Sandtree said:

1) Does she live with you?

2) Is the mortgage in joint names?

Ultimately you need to be able to look the counter fraud department in the eye and be able to tell them convincingly that you answered the question as best as you can based on your understanding inc any help text (of which there is little compared to insurance questionnaires etc)

1) yes - my uncertainty comes in the legal definition of 'partner' (there is nothing legally binding us as people, such as a living together agreement, outside of our ownership of our house and mortgage, etc.)
2) yes

That's the thing, there is no help or more context provided in these forms.
In my mind, if you are analysing my credit, then you only need to know the money that enters and leaves my account, but I'm far from understanding these systems that reward people for not living within their means, so I'm far from sure that I'm correct.

Thank you!

[Deleted User]

It depends on the precise question being asked but, in general, put your share of the costs.

The credit systems don't reward people for not living within their means, as the higher risk increases the incidence of decline or a higher rate. Non-credit systems may vary.

csmith848

Deleted_User said:

It depends on the precise question being asked but, in general, put your share of the costs.

The credit systems don't reward people for not living within their means, as the higher risk increases the incidence of decline or a higher rate. Non-credit systems may vary.

Thanks for the reply.

There is no long-worded question as such, just the standard information request on a form - it just says something to the effect of 'monthly mortgage payment' and then a text box for you to enter a monetary amount.

Sorry, I'm not sure I understand what you mean..
From my experience, if I live until my mid-30s without ever needing a credit card because I spend the money that comes into my account from my full time job, I have a lower credit rating (and therefore less chance of being successfully granted credit when i need it) than someone who has been using forms of credit (i.e. money they might not have at the time of purchase) since they were legally able to do so.

[Deleted User]

Your lower credit rating has no role in credit acceptance.

But using credit doesn't automatically mean living beyond your means. It demonstrates responsible credit usage and therefore lower risk. No credit usage makes you an unknown entity and therefore a higher risk.

You're only living beyond your means if you're not able to repay in full and are reliant on the credit.

Credit is all based on risk, so you need to demonstrate that yours is low.

csmith848

Deleted_User said:

Your lower credit rating has no role in credit acceptance.

But using credit doesn't automatically mean living beyond your means. It demonstrates responsible credit usage and therefore lower risk. No credit usage makes you an unknown entity and therefore a higher risk.

You're only living beyond your means if you're not able to repay in full and are reliant on the credit.

Credit is all based on risk, so you need to demonstrate that yours is low.

Not sure I understand your first line, I'm afraid - what is the point in a credit rating if not to act as a gauge for acceptance?

I would agree with you if companies didn't basically have access to absolutely every transaction in and out of our accounts - considering that they do, it's not hard to see that someone is responsible in that the money leaving never exceeds the money coming in. I'd say that is more responsible than any situation involving the word 'credit'.

Regardless of our thoughts/disagreements, anything you might be able to add to help on the original question/topic would be greatly appreciated.

Thanks again

[Deleted User]

Your credit rating is purely for entertainment purposes. No lender will ever see or use it as it provides no guide to your credit worthiness or fit for their criteria. They assess you on your credit history and circumstances.

Lenders are looking for indications you can handle credit. Avoiding credit doesn't provide that evidence. And they don't have access to every transaction from your current account, only whether you are overdrawn or not.

With regards to your original question, see my first reply. In general, a lender wants to know your own commitments in assessing affordability. So if you're splitting the mortgage, put your share. 

Jami74

csmith848 said:

1) Should I select 'living with partner' as my marital status?
2) Should I enter our total mortgage payment, or 50% of it because I split it equally with my girlfriend?

1) If you live with your partner then put that if it is an option. Choose whichever option is closest to your real life situation.
 2) Put your share. If you are applying for credit they want to know your commitments.

The credit reference agencies make up a score based on the information you give them and your accounts. This is the score that you can see.

The credit card/loan companies have their own scoring system which they keep very secret. They don't see the score that the credit reference agencies give you and they don't care what it is. No-one knows the criteria each company score against and you'll never find out what score they've given you.

Sometimes people with excellent scores on experien, credit score etc can't get credit and sometimes people with low scores do. Neither the credit reference agencies or the company you apply for credit with will be able to see every single transaction in and out of your accounts.

phillw

Deleted_User said:

Your credit rating is purely for entertainment purposes.  

Not this again.

[Deleted User]

Looks like it, doesn't  it?