Joint Checking Account Will Not Help or Hurt Your Credit - Experian (2024)

FAQs

Does a joint checking account affect credit score? ›

Checking account balances don't appear on your credit report and checking accounts don't directly factor into calculating your credit score. However, if problems managing your joint checking account cause missed credit card or loan payments, or credit card overuse, those issues will affect your credit.

A joint bank account can be a good idea as long as you and the other account holder have a strong, trusting relationship. Whether you're planning to share an account with a child, significant other or aging parent, communication is essential. That may mean having difficult discussions about spending and saving habits.

Checking your own credit report or score won't affect your credit scores. It's an example of a soft inquiry—a request for credit info that does not affect credit scores. Experian, TransUnion and Equifax now offer all U.S. consumers free weekly credit reports through AnnualCreditReport.com.

Joint accounts affect both credit reports.

Shared accounts show up on the reports for both people. That means if one person falls behind on payments or the account gets charged off, it'll count against both.

After all, pooling one's resources seems to make a marriage happier and more stable—something most couples want when they first say “I do.” “Couples do seem to be happier when they have a joint account, at least for those first two years of marriage—and possibly later, too,” says Olson.

So if you've got a lot of savings, lenders can't look at this when they're deciding whether or not to let you borrow. And if you open a joint saving account with your partner, this won't show up on your credit history.

Cons of Joint Savings Accounts:

Loss of Individual Control: One of the primary drawbacks of a joint savings account is the loss of individual control over funds.

Pitfalls of Joint Accounts

Joint accounts can cause problems, however, because they generally provide all parties unlimited access to the funds. Thus, if one spouse has difficulty controlling their spending habits, this may affect the other spouse, who may be more frugal.

Multiple credit applications can negatively affect your score, regardless of whether they're successful. This is because each application records a hard search on your report. Try to only apply for credit you're eligible for. Missing payments.

Why is my Experian credit score so bad? ›

There are many factors that affect your score – some more than others. Bankruptcy will lower your score far more than one late payment, for example. It may seem odd, but never taking out credit can also give you a poor rating. Lenders like to see that you've managed credit successfully in the past.

The most important factor of your FICO^® Score^☉ , used by 90% of top lenders, is your payment history, or how you've managed your credit accounts. Close behind is the amounts owed—and more specifically how much of your available credit you're using—on your credit accounts. The three other factors carry less weight.

Checking accounts, including joint accounts, are not part of your credit history, so they do not impact credit scores. Your credit report only includes information about your debts, and accounts have the same effect on your credit whether you are associated with the account as an individual or as a joint owner.

Joint Bank Account Rules: Who Owns What? All joint bank accounts have two or more owners. Each owner has the full right to withdraw, deposit, and otherwise manage the account's funds. While some banks may label one person as the primary account holder, that doesn't change the fact everyone owns everything—together.

Credit scores aren't affected by how many bank accounts you have. Multiple bank accounts are only bad for your credit if you repeatedly pass bad checks and those checks go to collections.

With a joint account, both people can make purchases, and both are fully responsible for the bill; with an authorized user setup, both can make purchases, but only one is legally liable for paying.

If you have a joint account, you both may have to pay taxes on a portion of the interest income. However, the bank will only send one 1099-INT tax form. You can ask the bank who will receive the form because that person has to list the income on their tax return.

Credit histories and scores don't combine when you get married. Your credit history and scores are yours and yours alone, and your marital status is not included in your credit reports. But if you have a shared account or you're an authorized user of your spouse's account, you could affect each other's scores.