Monday 13 February 2017 2:00 am
Millions are risking credit rejection thanks to exes with poor financial histories
A clean break from an ex-partner can be easier said than done… And now, new research from credit checking firm ClearScore has found that millions of Brits risk being turned down for mortgages and other financial products, because they’re unknowingly still tied to ex-partners with poor financial histories.
Once you’ve made the step to take out a joint financial product with someone, a connection is created that remains on both of your credit reports for six years – for better, for worse… Even after the account is closed or you separate from that person.
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Nearly seven in 10 are unaware that a connection still exists after an account is closed and of those who did know, only six per cent were aware a bad connection can continue to hinder them for six years. And half felt they were still being impacted by taking out a joint product with a partner from whom they’ve since split.
When applying for credit products, banks and lenders can look at any financial connections a person has – so the 11.7m Brits who have taken out a joint product in the past could be refused credit if their ex has a less than stellar financial history.
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So before you propose taking out a joint financial product, you might have a few awkward questions to ask of your significant other…
Justin Basini, ClearScore's chief executive said, “When a relationship ends, it’s your responsibility to uncouple your financial records. I’d advise anyone applying for credit to check their credit report and, if you’re still linked to someone whose financial behaviour you suspect could be detrimental, contact the credit reference agencies to request that your connection is severed.”