My credit rating is good...partner is going on DMP

Firsttimebuyer_4

Hi,

My partner is about to start her DMP which will ruin her credit rating. Her rating at the moment is actually ok with no missed payments, but only because she has been using overdrafts and credit cards to pay off other credits...rob peter to pay paul situation. This is no longer sustainable so a DMP is due to start shortly (the plan has been agreed with CCCS).

I have a very good credit history with no missed payments etc etc. I do have quite a lot of debt but it is manageable and I will be debt free in February 2010. (yaaay! )

We have a joint account together but no joint credit cards or loans. I know that we are financially linked on our credit reports.

How will her going on a DMP affect my credit rating if I want to shift some of my credit card debt to 0% cards? (just got approved for an Egg card with 15 months 0% so rating is ok at the moment but I might want to shift some other debt too)

Might it be worth cancelling the joint account to dissassociate myself with her (financially)?

rayday2

I am not sure how it effects you in applying for credit cards but I know if you were to go for a joint mortgage it would effect that application and possibly put you in the sub prime market but that is in both your names.

Hopefully someone will come along who has had personal experience we have only had the above with a mortgage.

Ibex

hello First time buyer

My husband has been on a DMP though CCCS for about a year and a half. And I like you have an immaculate credit history. The only way we are financially assoiciated is with our joint mortgage. This dosn't seem to have affected my credit rating at all, however not sure what a joint bank account joint CC's etc would do.

I think other posters have mentioned before that it would be best to dissassiociate (sp) anything fincancial from your partner if practical.

Anyway I have applied for and obtained CC's and current account during my husbands DMP, BUT........... we are now thinking of either selling or re-mortgaging later on this year (we have to re-mortgage anyway as fixed deal coming to an end) and the feed back from the mortgatge companies is not good even if I when I explian that I would like to take on the whole mortgatge in my name they are still not keen. I'm sure we/I will get a mortgage but it certtinly won't be the best deal.

Best wishes

Ibex

Firsttimebuyer_4

My second question was actually going to be about us buying a house at some point. We are currently renting but are looking at buying when the housing market cools down a bit more. It might then be that I can afford to take the whole mortgage in my name only. She would be paying me on the side and get joint ownership etc but if it would help us getting a better rate then that's a possibility for us.

The joint account is very handy to have as we use it for bills shopping etc. We also have a savings account but there's not much in it at the moment Our finances apart from those two accounts are completly seperate and she understands that her debt is her problem (that is....she got into the mess and she wants to get herself out of it herself). I would help if I could, but at the moment I can't afford to...she's got too much debts and so do I since I'm on a mission to clear £28,000 by Feb 2010 and it's going quite well!)