So, you’re in a committed relationship with your partner and have moved in together. That’s a big step and will either make or break a relationship. When it comes to paying bills and rent or mortgage, the easiest option seems like setting up a joint bank account. But that’s a massive step too.
Sure, you may think, you’ve come this far so why not go the whole distance but a joint bank account isn’t to be something to rush into.
Once you open that bank account, you’re financially connected. Do you trust your partner enough with money to be financially connected?
With your own account, your money and that account is solely your responsibility but you share responsibility for a joint account. If your partner doesn’t hold up their end of the deal, you will have to pick up the pieces.
Consider whether your partner has any financial issues that could end up your issue too.
Money is one of the biggest causes of arguments and breakups, with debt, gambling and frivilous spending being the main contributors to disagreements.
Everything that your partner does financially contributes to your credit score once you’re connected, even if they have their own personal account.
So, even if they’re great at paying bills through the joint account, if they don’t pay their phone bill on time through their own bank account, this will affect their credit rating, which will also affect your score too.
What if (God forbid) it doesn’t work out and you’re financially connected. You have the awkward experience of closing the account and it sometimes can be difficult to remove a financial connection from your credit report.
Money and your credit rating is incredibly important. Whilst it would be nice for everything to be sunshine and rainbows in a relationship, it doesn’t always work that way.
You need to weigh everything up and consider how much you trust your partner financially.
It all boils down to whether you think your partner is financially responsible. If the trust is there, a joint account could be great for you.
Joint accounts are a great way of showing your commitment to each other and your life together. The fact that you are willing to share money and financial responsibilities shows a great deal of trust.
Joint accounts can also help you manage your finances more effectively. It’s easier to pay bills out of a shared pot that you both contribute to. You can pay equal amounts into it, sharing the cost of bills and even social life easily.
Another advantage is if you have struggled to improve your own credit rating, if your partner has a good score, it will improve yours by having that connection.
There are huge pros and cons to a joint account and you need to really think whether it is going to work for you.
Whether you decide to open a joint bank account depends solely on you, your partner and your relationship.
No one can tell you whether it is right or wrong and every situation is different.
The only thing I would recommend is to keep your individual account and have your wages paid into it, that way, you always have a safety net.