Reply
Regular Contributor
scmami
Posts: 195
Registered: ‎01-05-2012

Inquiry to open a joint savings account?

I got an alert that I had a new inquiry from my credit union for opening a joint savings account with my 12 year old daughter. My score did not change. I was not told my credit would be pulled. Should I have assumed this? I have an existing checking and savings account with the same credit union.
Starting FICOs (2/2012): EQ 559 TU 558
Current FICOs (EX and TU Lender pulled 10/6/12): EQ 652 TU 635 EX 647
Matthew 7:1 KJV
Judge not, that ye be not judged.
Moderator
Revelate
Posts: 8,318
Registered: ‎12-30-2011

Re: Inquiry to open a joint savings account?

[ Edited ]

scmami wrote:
I got an alert that I had a new inquiry from my credit union for opening a joint savings account with my 12 year old daughter. My score did not change. I was not told my credit would be pulled. Should I have assumed this? I have an existing checking and savings account with the same credit union.

Hrm, tough to say.  I would've assumed that they would if you were opening a joint account with a legal adult, but the bureaus aren't supposed to knowingly keep track of minors, what on earth is the point of pulling the credit of a 12 year old?

 

It was probably an automated process, you *might* be able to talk them out of it, but I wouldn't hold my breath.  I'd certainly ask nicely, but fundamentally I'm pretty certain your daughter isn't legally responsible for any issues that happen with the checking account so it seems sorta pointless and unfortunate in your situation.

 

Edit: second thought, I think you're stuck.  She's 12 now, but in joining the CU, they're going to pull credit for membership reasons.  It wouldn't be impossible but for various reasons I wouldn't expect them to not pull credit for anyone under the age of 18,, and then poll their credit at 18 (which still seems sorta laughable) when they can qualify for accounts on their own.  I'm not certain how it's setup but it's probably their blanket policy and applies to all CU's most likely, but since you're chasing a mortgage in 1/13, it's worth at least asking, I just don't think you'll get far with it unfortunately and I wouldn't make a huge deal over it... it won't matter much in six months, and on recon you'll probably get bonus points from it by telling the story about trying to teach your daughter fiscal responsibility.

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 679, EQ 8 708, TU 711, EX 702* (07/14/14, EX older)
Goal Score: 700 on EQ '04 (01/01/15)


Take the myFICO Fitness Challenge
Regular Contributor
scmami
Posts: 195
Registered: ‎01-05-2012

Re: Inquiry to open a joint savings account?

I will do just that. I'll call their customer service number and go by the branch on Monday. You're right, it's worth a shot! And I am looking at a mortgage soon, that's the only reason I even care! I was relieved it didn't cause a score drop because I sure can't take one! If it's questioned, I agree with you. Can't argue with teaching kids to save! (wish someone would have taught me!)
Starting FICOs (2/2012): EQ 559 TU 558
Current FICOs (EX and TU Lender pulled 10/6/12): EQ 652 TU 635 EX 647
Matthew 7:1 KJV
Judge not, that ye be not judged.
Mega Contributor
RobertEG
Posts: 17,456
Registered: ‎03-19-2007

Re: Inquiry to open a joint savings account?

I dont think the issue of a minor also being on the account is relevant.

As a joint applicant, you permit them to pull your CR provided they have a "legitimate business purpose" to review your credit.

Personally, I think opening a savings account has a questionable "legitimate business purpose," but they might have one, such as overdraft protection.

Is their anything in the account agreement that might incur a potential loss to them, and thus give rise to a legitimate business purpose?

 

Moderator
Revelate
Posts: 8,318
Registered: ‎12-30-2011

Re: Inquiry to open a joint savings account?

[ Edited ]

While I agree with your point Robert, every CU in all of human existance to my knowledge does it upon a new member joining.  Joint account probably had little or nothing to do with it honestly.

 

I think the core rationale was that since CU's are only as good as the collective assets of their members, and actually the members own the joint (in theory), and as such they have a reason to pull credit to ensure they're not admitting a deadbeat.  It's no different really than a credit check on a job application or apartment rental in that regard, of course I think those are pretty frivolous too, but it's what we're stuck with.

 

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 679, EQ 8 708, TU 711, EX 702* (07/14/14, EX older)
Goal Score: 700 on EQ '04 (01/01/15)


Take the myFICO Fitness Challenge
Regular Contributor
scmami
Posts: 195
Registered: ‎01-05-2012

Re: Inquiry to open a joint savings account?

I understand why credit needs to be pulled to open a new acct. So I guess my biggest question is why did my credit need to be pulled when I am already an existing member? I'm not worried about my daughters credit being pulled or anything about her at all. I guess I just figured since I am a current member, I wouldn't have to go through that. As far as having a permissible business purpose, I guess opening the new account would be the purpose.
Starting FICOs (2/2012): EQ 559 TU 558
Current FICOs (EX and TU Lender pulled 10/6/12): EQ 652 TU 635 EX 647
Matthew 7:1 KJV
Judge not, that ye be not judged.

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+