Credit Score Basics > How to move from a joint account to a single-name account?

How to move from a joint account to a single-name account?

Wollit Team2 minute read · Updated 1st July 2024

To move from a joint account to a single-name account in the UK is not enough to simply call your bank. You need to follow specific steps, especially if you want to keep your credit score safe. Here is what you need to do.

What are the steps to move from a joint account to a single-name account?

Moving from a joint account to an individual account involves a couple of things: first, closing the old account; second, opening the new account; third, disassociating yourself from the financial link with the other account holder. If you don’t do this, the old financial link can impact your credit history and future credit applications.

Here are the steps you need to take:

1. Start the process by contacting your bank to discuss your intention to convert the joint account into a single-name account. Banks have specific procedures for this transition.
2. Settle any existing debt. If you’re closing a joint current account, settle any existing overdraft debt associated with the joint account. This is essential to avoid complications during the process. In some cases, closing the joint account may be required before opening a new single-name account.
3. You will need to get the approval of the other account holder. Depending on the bank's policies, you may even need to visit a branch to finalise the conversion. Make sure both account holders are present if the bank asks for it.
4. Once the account is closed or switched, contact the credit reference agencies (Equifax, Experian, and TransUnion) about the change to make sure that the account is shown only on your credit report.
5. You will also need to add a Notice of Disassociation to your credit report. This will remove the other account holder as a “financial associate” from your credit file, which means that their credit score will stop influencing yours. You’ll also do this by contacting each credit reference agency.

Will closing a joint account affect my credit score?

Yes, moving from a joint account to a single-name account can impact your credit score, especially if the joint account had a significant financial history. However, this drop will be small, and it will be temporary. What matters is that you remove the financial association so you can avoid further risks down the line.

To maintain your credit score and even improve it, you should consider downloading a specialised credit-building app. One such app is Wollit.

Wollit works by reporting a fixed-fee monthly subscription as a loan repayment to all credit reference agencies. This gives you a chance to continue building your own credit history and improve your credit score without the fear of financial associations and without having to be linked with someone else’s credit rating.

On top of this, Wollit can also report your monthly rent payment to Experian. This can add another line in your credit report that shows lenders you pay your bills on time, helping you reduce the impact of a single account being closed in your overall credit file.

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