How relationship breakdown can affect Credit Reports
If two people in a relationship have obtained credit jointly, they will be linked financially. This could be through buying a home with a mortgage, having a joint bank account, a joint loan agreement, or perhaps a credit card with a second named person
When do you become financially linked?
These credit transactions will be recorded on each person’s individual credit file. The financial link to the other person will also be recorded on both their files. If one person applies for credit then the other persons financial commitment will be assessed even though they are not seeking credit.
Problems arise when a relationship breaks down and ends, as the joint finances will have to be sorted. It's important to look after your own credit score
During the process of separation/divorce, it is important to make sure that any joint bank accounts are closed. Once the separation of joint financial matters is complete you need to disassociate your ex-partner from your credit file.
It is advisable to contact the three main credit reference agencies: Experian, Credit Karma and Equifax.
https://www.experian.co.uk
https://www.econsumer.equifax.co.uk
https://www.creditkarma.com
Request that they put a ‘notice of disassociation’ on your file. For future credit, this lets lenders know you are no longer linked financially to your ex-partner.
The credit reference agencies will not ask you to provide proof as they can do a background check to ensure you no longer have any joint products.
You can get financial associations removed from your report
If there has been a joint debt that defaulted or a joint debt that has been awarded a county court judgement against it, you can still ask for a disassociation as credit reference agencies do not count these as financial links.
If you have been living apart for more than six months and the only link between you and the other person is a joint mortgage, the credit reference companies will record a disassociation. This is a concession to help people to move on.
Joint Debt liability
When you take out a joint debt, you and the other person both become responsible for the whole amount, not just your own share or ‘half’. If one of you can’t or won’t pay, you’re both liable for the full debt no matter which one of you spent the money. This is known as ‘joint and several liability’.
These credit transactions will be recorded on each person’s individual credit file. The financial link to the other person will also be recorded on both their files. If one person applies for credit then the other persons financial commitment will be assessed even though they are not seeking credit.
Problems arise when a relationship breaks down and ends, as the joint finances will have to be sorted. It's important to look after your own credit score
During the process of separation/divorce, it is important to make sure that any joint bank accounts are closed. Once the separation of joint financial matters is complete you need to disassociate your ex-partner from your credit file.
It is advisable to contact the three main credit reference agencies: Experian, Credit Karma and Equifax.
https://www.experian.co.uk
https://www.econsumer.equifax.co.uk
https://www.creditkarma.com
Request that they put a ‘notice of disassociation’ on your file. For future credit, this lets lenders know you are no longer linked financially to your ex-partner.
The credit reference agencies will not ask you to provide proof as they can do a background check to ensure you no longer have any joint products.
You can get financial associations removed from your report
If there has been a joint debt that defaulted or a joint debt that has been awarded a county court judgement against it, you can still ask for a disassociation as credit reference agencies do not count these as financial links.
If you have been living apart for more than six months and the only link between you and the other person is a joint mortgage, the credit reference companies will record a disassociation. This is a concession to help people to move on.
Joint Debt liability
When you take out a joint debt, you and the other person both become responsible for the whole amount, not just your own share or ‘half’. If one of you can’t or won’t pay, you’re both liable for the full debt no matter which one of you spent the money. This is known as ‘joint and several liability’.