Credit Building > Who needs to do a credit check for a joint bank account?

Who needs to do a credit check for a joint bank account?

Wollit Team1 minute read · Updated 3rd July 2024

Opening a joint bank account in the UK can be a convenient way to manage shared expenses with another person. However, this does involve a credit check, usually for both account holders.

Here is what this depends on and what to expect.

Who needs to go through a credit check when opening a joint bank account?

If you’re applying for a joint account with someone else, both of you will usually need to go through a credit check.

This is because the bank will want to look at both your credit histories to figure out how risky lending to you is.

The credit check is usually done by the bank using information from one or more of the three major credit reference agencies: TransUnion, Equifax, or Experian.

Why do credit checks matter for a joint account?

First of all, credit checks matter for your credit score. Each credit check can lower your credit score temporarily for each applicant, and going through multiple credit checks can lower your credit score even more.

This is why you should not make too many applications for joint accounts (or any kinds of accounts) in a short period of time. Experian recommends not more than two within any six months.

Second, credit checks are crucial in the joint bank account application process because they help the bank evaluate the creditworthiness of each applicant.

A good credit score shows that a person has a history of managing their debt responsibly, which can increase the chances of getting your application for a joint account approved.

Third, credit checks help the bank also decide what kind of terms to offer you. A poor credit score can lead to poor terms, like an account with no overdraft limit or high overdraft interest rates.

To get your application for a joint account accepted, and to get the best possible terms (like a generous overdraft limit and low interest rates), both of you should work on improving your credit score.

One of the ways to improve your score is to download a credit-building app like Wollit.

Wollit works by reporting a fixed fee monthly subscription as a loan repayment to the credit reference agencies (Experian, Equifax, and TransUnion).

This helps you build or rebuild your credit history by showing that you can pay debt on time. It can even report your monthly rent payment to Experian, adding another line in your credit report that shows lenders you're responsible and pay your bills when they’re due.

In time, this will help you improve your credit score so you won’t need to be worried about any credit check ever again.