Does a poor credit record affect a joint home loan application if only one of the applicants has a listing against their name?

Banks are guided by the National Credit act in the granting of credit to applicants, so an impaired credit rating of any of the joint applicants can affect the outcome of a joint home loan application. 

The bank’s credit decision will depend on the strength of the remaining applicant’s information and on how often and how severe the listings are on the credit record of the second applicant.

For instance, a once-off default on a small retail account that can be explained will not have as serious an effect as a credit record with many defaults over a period of time.

The different banks use different processes to assess applications, so the extent to which a poor credit record will affect the outcome will vary from bank to bank.

However, if either of the applicants has been blacklisted or is under a formal rehabilitation programme, the banks will not approve the loan as a joint application. Banks’ credit policies are bound by the National Credit Act, which states that no person who has been blacklisted may be granted credit.

If you are considering buying a property with a partner but have concerns about one person’s credit record, it’s a good idea to get prequalified before applying for a home loan. When you are assessed for prequalification, a credit check will be run against your name, and your overall affordability will be calculated.

ooba’s prequalification service – oobaqualified – takes things a step further by helping you to do whatever you can to improve a bad credit record, and assisting you in consolidating your existing debts to improve your affordability.

In addition, by submitting your home loan application to multiple banks simultaneously, ooba has the best chance of securing you a home loan from whichever bank has the least stringent lending criteria.