Bad credit on an address myths

Posted by Kirstie Brown in Credit Score on 9 January 2020 - Kirstie is a Senior Credit Analyst at checkmyfile.

When moving into a new house, the first thoughts that go through your mind could be along the lines of “what colour am I going to paint the kitchen?” or “will my wardrobe actually fit in the bedroom?” You may not immediately ask yourself “I wonder how much debt the previous occupant had!”

Your Credit Report is vital in this day and age and having a good Credit Rating is especially crucial for those important moments like buying a house, or taking out a loan to pay for a car, wedding or home improvement. With all the stress that comes with an application for something like a mortgage, it’s worth knowing what can affect your chances of being accepted.

Can someone else at my address affect my Credit Rating?

A common worry when it comes to Credit Reports is whether a former occupant at an address can impact the person currently living there and harm their Credit Score.

The good news is that credit agreements are registered to specific individuals rather than to an address and, as such, a previous tenant or other people living at your address shouldn’t impact your Credit Report unless you have a financial connection to them.

What if we are financially linked?

The only way that another individual can impact on your credit applications is if you are Financially Associated. This occurs when you hold a joint account with someone else, or have done in the past. This could be a joint bank account with a spouse or even being jointly named on a utility account with a flatmate, as just two examples. Once a Financial Association has been reported on your Credit Report, a lender can then decide whether to search the Credit Report of the other person during your application and, if there is negative information reported, this will likely harm your chances of being accepted.

If you have previously held joint accounts with an individual but the agreement has now been closed, you can request that the Financial Association is removed by contacting the Credit Reference Agencies (CRAs). If no active link is found between yourself and the other person, the CRAs can remove the Financial Association from your Credit Report and any negative information on that person’s Credit Report would no longer affect you. Because financial associations will remain on your Credit Report indefinitely, it’s important to check for yourself that everything is correct. Just because a relationship ends, it doesn’t mean that the association does.

We can dispute Financial Associations with the CRAs on behalf of our active subscribers, so if you’re looking to have an old associate removed, feel free to contact our professionally qualified Credit Analysts.

How do I check my Credit Report?

It is always a good idea to check your Credit Report to see exactly what is held by the CRAs and to make sure that the information is correct. Please be assured that checking your own Credit Report has no negative effect on your score – you can check your own information as much as you like without penalty.

If you haven’t already, you can check your Multi Agency Credit Report with checkmyfile free for 30 days, then just £14.99 per month. You can cancel easily online, by freephone or email at any point. Importantly, our Credit Reports are the most detailed in the UK, including your complete information from the four Credit Reference Agencies so you can see everything in one place.

Updated 09/01/2020 by Sam Griffin

10 Credit Myths Busted

Credit checks are an integral part of modern life: from buying a house or car to applying for a new job or passing a tenancy check, your Credit Report is remarkably versatile. But considering the important role Credit Reports can play, there are still a number of popular myths surrounding them. We’ll look at ten misconceptions to point you in the right direction.

Published on 30 Dec 2019 by Kirstie Day

Full Article

How does my ‘Credit Age’ affect my Credit Score?

Credit age is a difficult concept to define and can be tricky to get your head around. This isn’t about what year you were born – it’s more a reflection of how long and to what extent you’ve been using credit and is an important consideration when looking at your Credit Score - especially if you’re looking to improve it.

Published on 23 Dec 2019 by Andrew Brown

Full Article

Age matters when it comes to your credit score

Credit Action, the National Money Education Charity, scares everyone witless every month with unnerving financial statistics. A few examples include the fact that a property is repossessed every hour and 43 minutes, that every four minutes someone is declared insolvent, and that the Citizens’ Advice Bureau deals with 2,595 new cases every day. In its October 2019 statistics, the charity advised that average household debt is a mere £59,441 including mortgages. According to the BBC, the stat without mortgages has risen sharply to £15,385.

Published on 5 Dec 2019 by Barry Stamp

Full Article

Is there discrimination in credit assessment?

Apple could find itself in hot water in the US after a weekend of high-profile claims that applicants to its recently launched Credit Card were discriminated against on the basis of gender.

Published on 11 Nov 2019 by Barry Stamp

Full Article

Why do I get different Credit Scores?

The first ever idea of a Credit Score was introduced in the 1950s in the United States. Almost by accident, as Bill Fair and Earl Isaac discovered that a study looking at a potential predictor of ill health could be better used to predict bankruptcy and default. They teamed up to form Fair Isaac, Inc, now FICO, to sell credit scores to lenders. FICO scores are now household names by consumers in the US, as they are used extensively, with little competition.

Published on 3 Sep 2019 by Andrew Brown

Full Article

Does Gambling Affect Your Credit Score?

If you’re among the 32% of Brits that gamble on a weekly basis and are thinking of applying for some form of credit in the near future, you might be wondering whether your activity could affect your Credit Rating and your chances of being accepted.

Published on 13 Jun 2019 by Richard Catlin

Full Article

Can Social Scoring Really Affect Credit Applications?

Increased consumer awareness of the importance of a good Credit Score in recent years means that most people applying for a mortgage, loan or other form of finance know that the odds of their application being successful largely depend on the information contained within their Credit Report (among other factors) and how the lender in question interprets it.

Published on 24 Jan 2019 by Jamie Mackenzie Smith

Full Article

What Is An UltraFICO Score And Could It Work In The UK?

Would-be borrowers in the US have been given a potential new route when it comes to proving their creditworthiness to potential lenders, thanks to the recently announced UltraFICO score, which looks beyond the information traditionally used to assess credit applications.

Published on 28 Dec 2018 by Katherine Cornell

Full Article

How To See Your Credit Score For Free

When thinking about your finances and your eligibility to take out a loan, credit card or any form of borrowing, it’s tempting to boil your creditworthiness down into one single ‘make-or-break’ Credit Score. It’s not quite that simple though.

Published on 2 Oct 2018 by Jamie Mackenzie Smith

Full Article

9 Ways to Improve Your Credit Rating

Whether you’re planning on applying for credit in the very near future, or you just want to make sure that everything is as it should be, it pays to check your Credit Report. In many cases, there will even be easy steps you can take to improve your Credit Rating.

Published on 12 Sep 2018 by Beth Jennings

Full Article
keyboard_arrow_left

keyboard_arrow_right

We are rated number 1 for customer service on