The Case For Joint Names On Utilities, Insurance, And Shared Expenses

There are many reasons why you might want to put both names on insurance, utility, and other bills. For example, if you are married or in a serious relationship, it may make sense to share financial responsibilities. This can include having joint accounts or adding your partner as an authorised user on your accounts. Additionally, in the case of roommates or business partners, it is common to put both names on utility bills to ensure shared responsibility. It is important to note that both parties are usually required to inform the company and agree to share the responsibility.

In the context of marriage, it is worth considering how you handle your personal finances. If you maintain separate bank accounts, you may want to keep certain bills separate. On the other hand, if you have a joint account, it is advisable to have both names on all bills paid from that account. Furthermore, in community property states, creditors can hold either spouse responsible for the other's debt, as assets and debts are shared.

It is also worth noting that having utility bills in your name can be useful for proof of identity and address when setting up new accounts. This is particularly relevant for long-term partners who are not married but share a residence.

Pros and cons of both names on bills

There are several pros and cons to consider when deciding whether to put both names on insurance, utility, and other bills. Here are some key points to keep in mind:

Pros:

• Shared responsibility: When both names are on the bill, it establishes a shared responsibility for the account. This is especially important if one spouse typically handles the bills, as it ensures equal accountability.
• Access to information: With both names on the bill, both individuals can access account information and contact the service provider regarding any issues. This minimizes reliance on a single person.
• Wider range of account management options: In most cases, joint account holders can make changes to the account without requiring authorization from the other person. This includes updating contact information or adding authorized users.
• Avoiding deposits: If one person has never had a utility bill in their name, putting both names on the bill can help avoid deposits that utility companies often charge if there is no history with them.
• Proof of identity: In some cases, having a utility bill in both names can be useful for proof of identity when setting up bank accounts or other services.
• Credit history: If one person has a poor credit history, putting bills in both names can help them build their credit profile by demonstrating timely payments.

Cons:

• Potential issues in case of separation: If a couple separates, having bills in both names can lead to complications. One person may need to re-acquire services in their name, which could result in service interruptions or early termination fees.
• Limited options for certain services: Some service providers, such as Virgin Media, have stated that their system does not allow for two names on an account. This can cause frustration and inconvenience.
• Credit score impact: If payments are late or defaulted, it can negatively affect both individuals' credit scores and their ability to open accounts or obtain credit in the future.
• Potential for identity theft: Authorizing another person to get utility service in your name means you are responsible for ensuring they make payments. If they don't, it is up to you to pay off the debt and close the account.

Ultimately, the decision to put both names on bills depends on each couple's personal situation and how they manage their finances. It is important to carefully consider the pros and cons before making a decision.

Shared responsibility for bills

There are many reasons why you might want to add a second name to your bills. It could be that you're moving in with a partner or a friend, or that you want to share the responsibility with a family member.

The pros and cons

There are no hard and fast rules when it comes to whose names are on the bills. It's helpful to review the pros and cons and compare them with your personal situation before making a decision.

Inform the company

Once both parties agree to share responsibility, putting two names on a utility bill is usually straightforward. It typically only requires that both parties inform the utility company over the phone or in person.

How to add a second name

Call the utility company and choose the "speak with a customer service representative" option or a similar option such as "account management" or "billing representative." If you're opening a new account, choose the "set up an account" option or similar.

Answer the customer service representative's account questions. If dealing with an existing account, put the account holder on the line and provide the name and address on the account, account number or password. If setting up a new account, either person can provide the address.

Explain that you want to put a second name on the bill and follow the representative's instructions. Every utility company uses slightly different procedures. The representative may ask both parties to go to a local branch office or require verbal confirmation on the call, sometimes with a transfer to a recording or third-party witness line.

Go to a local branch

If required, go to your local utility branch office together. Explain what you need to the customer service representative, show identification, and sign and date any account change or new account set-up paperwork if requested.

Protecting account security

After adding a second name to a utility bill, consider placing a password on the account for both parties to use when calling to make changes or inquire about billing.

Important considerations

• Never put your name on another person's utility bill unless you intend to take on the financial responsibilities of the account. If one person fails to pay, the utility company can hold the second person equally responsible and accountable for the payment.
• The person whose name is on the bill is solely responsible for ensuring payments are made on time. Late or defaulted payments can negatively affect that person's credit and their ability to open accounts or receive credit in the future, particularly if the bill is sent to collections.
• If you have your own cell phones, you may want to keep them separate.
• If you each had credit cards prior to sharing finances, and you have balances on the cards, keep those as they stand, particularly if you are paying these cards from your personal account.
• If you get a card that you plan to use for household items or other shared expenses, it should be in both your names.
• The same is true of vehicle loans. If one person wants a vehicle that the other doesn't want to be responsible for, there is no reason for them to be liable for the loan. If their name is on it, they owe it if the other person defaults.
• Both names should be on any mortgage or apartment lease.

Legal requirements

There are no legal requirements for whose names should be on insurance, utility, and other bills. However, there are some important considerations to keep in mind. Firstly, it is essential to understand the financial responsibilities associated with the bills. Both individuals whose names are on the bill are responsible for ensuring payments are made on time and may be held accountable if there are late or defaulted payments. This can negatively impact their credit rating and ability to obtain credit in the future.

In most cases, it is illegal to put a utility bill in someone else's name unless they are a roommate, spouse, or relative living at the same address and have agreed to take responsibility for the bill. It is also common for couples to have joint bills, especially if they share finances or want to avoid potential issues in the event of a spouse's death. Additionally, having joint bills can help build a credit profile and history, which may be beneficial when applying for loans or other financial products.

Furthermore, it is important to note that electric and other utility bills under the same name must be for separate addresses. Providers will not open two accounts for the same address. When deciding whose name goes on the bill, it is advisable to review the pros and cons and consider personal circumstances, such as income, credit history, and financial responsibilities.

Implications for credit scores

Whether or not both names should be on insurance, utility, and other bills depends on a variety of factors. These include the type of relationship between the two parties, the nature of the bill, and the credit history of each individual.

Joint Utility Bills and Credit Scores

If both names are on a utility bill, this creates a financial association between the two people. This association is noted on each individual's credit report. While one person's credit score is not directly affected by the other's, their credit history may be considered when the other person applies for credit. If the other person has poor credit, this can reduce the chances of getting approved for credit, even if the application is made alone.

Utility Bills and Credit Scores

Utility companies do not usually report accounts and payment history to the three major credit bureaus (Experian, TransUnion, and Equifax). Therefore, utility bills have not historically impacted credit scores. However, if an account becomes delinquent and is turned over to a collection agency, this will show up on the credit report as a serious negative.

Insurance and Credit Scores

Insurance scores are ratings based fully or partially on a consumer's credit information. Insurers use credit information, along with other factors, to help underwrite and price policies. These confidential ratings are typically used for personal lines such as homeowners and personal automobile insurance.

Actuarial studies suggest that how a person manages their financial affairs can be a good predictor of their likelihood to file insurance claims. This practice allows carriers to better match insurance premiums with the amount of risk that an individual customer might pose. The goal is to minimize the possibility that customers with lower risks might subsidize rates for those with higher risks.

Community Property States and Credit Scores

If you live in a community property state, creditors can go after either spouse for the debt of the other. In these states, assets are shared, and so is debt. Debt acquired after marriage will belong to both spouses. Even if you don't live in a community property state, you may still be responsible for your spouse's debt, depending on your state's laws.

Other Factors Affecting Credit Scores

• Small unpaid debts: Failing to pay even small bills could lower your credit score.
• Too many recent credit applications: Too many applications in a short time period can lower your credit score.
• Business credit cards: If you are the primary account holder on a business credit card, late payments or unpaid debts will affect your personal credit.
• Mistakes: Incorrect information in your credit history can hurt your score. People with common names, for example, may find other people's information in their file.

Setting up accounts

When setting up accounts, it's important to consider the level of responsibility and authority that each person will have. In the case of utility bills, it's common for roommates, spouses, or business partners to share responsibility by putting both names on the bill. This can be done by contacting the utility company and providing the necessary information, such as account details and personal information.

If you're setting up a new account, you can request to have both names included from the start. However, it's important to note that both parties will be responsible for ensuring timely payments. Failure to do so can negatively impact both individuals' credit scores and their ability to open accounts in the future.

In some cases, it may be advantageous to have separate accounts for certain services. For example, if you and your partner have your own cell phones, you may prefer to keep those accounts separate. Additionally, if one person has a history of late payments or credit issues, it might be wise to keep some accounts separate to protect the other person's creditworthiness.

It's also worth considering the potential consequences of relationship changes. For instance, if a couple breaks up, having separate accounts can simplify the process of cancelling or transferring services. On the other hand, if one spouse passes away, having both names on essential services like utilities can ensure uninterrupted service for the surviving spouse.

Ultimately, the decision to put both names on insurance, utility, and other bills depends on the couple's specific circumstances, including their financial situation, credit history, and long-term plans. It's important to weigh the pros and cons and make a decision that aligns with their shared goals and responsibilities.

Frequently asked questions