Additional card and credit consequence

teabelly

I'd like to give my other half an additional card to my normal credit card. He has a bad credit history but has paid everything off in full in the last 6 months. Will this affect my ability to get credit in any way or give me worse deals? The card would always be paid off each month. Because of his credit history we have always kept our finances entirely separate but circumstances are making it inconvenient and some shared finance seems to be a sensible solution. His current bank account doesn't provide a debit card so paying with cash is the only option.

NickX

Additional card holders do not actually carry any liability for the debt, so this should not affect your own credit rating as the primary card holder.

However, please be aware that you will be solely liable for any debts accrued on the additional card.

YorkshireBoy

Making him an additional cardholder on your account [STRIKE]will[/STRIKE] should not create a financial association.

smithja

teabelly wrote: »

I'd like to give my other half an additional card to my normal credit card. He has a bad credit history but has paid everything off in full in the last 6 months. Will this affect my ability to get credit in any way or give me worse deals? The card would always be paid off each month. Because of his credit history we have always kept our finances entirely separate but circumstances are making it inconvenient and some shared finance seems to be a sensible solution. His current bank account doesn't provide a debit card so paying with cash is the only option.

It depends on which bank, some are now creating a financial association with what they now describe as co-applicants.

Search around on the forums and you will find more information.

Some banks now send out a form asking for the additional cardholders details as if it were a new card application (date of birth, address, previous address, employment status etc.) and perform a credit and fraud check against those details.

You are definitely the only one liable for any debt but if your partners details are connected to yours it could have a devastating affect on your ability to get credit for the next 6 years at least.

Which bank(s) are you thinking of doing this with?

James

Edit: it does not matter to the bank that you are the only one liable they are worried what affect the additional cardholders finances will have on your ability to repay your credit agreements, and with good reason as it is in their best interests to take this stance.

CLAPTON

a year or so ago I would have said 'no problem' but now I wouldn't take the risk of creating an association.

smithja

You just need to take a look at a CallCredit paper report to see exactly what data they are now collating and connecting. Big brother is watching you!

teabelly

I was thinking of doing it with a lloydstsb card.