Can my ex impact on my credit score

Posted by George Coburn in Credit Reports on 28 March 2017 - George is a Credit Analyst at checkmyfile

One of the most common queries we receive at checkmyfile come from customers who view their credit report and discover that they’re still financially associated with an ex-partner.

These names from relationships past have a habit of lingering on credit files and can be the reason behind someone with an immaculate payment history getting declined following a credit check. So, how do they get there and what can be done about them?

A financial association can be created simply by applying for credit in joint names, so one could be placed on your report even if you don’t subsequently agree to continue the application. That said, they’re normally on your report because you have been joint named on a credit agreement such as a bank account, loan or mortgage.

Normally a financial association will be with a partner but since utility bills are also often reported to the credit reference agencies, it isn’t uncommon for people who share a property to have financial associations with each other if they’re all named on the credit agreement.

There are three credit reference agencies in the UK that hold financial associate information; Callcredit, Equifax and Experian. Whenever you apply for credit, the lender will request information in your name and everything that belongs to your financial associates. Information is then combined and a credit score calculated on all of it.

The presence of just one default, county court judgment (CCJ) or insolvency on someone’s credit file will normally be enough to stop them getting accepted by a typical lender. For this reason, someone could have a completely immaculate payment history, be on the Electoral Roll and have no court records on their credit report but if their financial association has negative information on their report, this could result in their application being declined.

What surprises people is that financial associates aren’t always automatically removed from credit files once all financial ties have been cut. It isn’t uncommon for someone to view their credit report and discover a financial association with an ex-partner they’ve not had any contact with for 10+ years, which would have been impacting their chances to get credit since then.

For security reasons, whenever your credit file is accessed, a search entry will be placed on it to reflect the fact your information has been viewed. The type of search will depend on the company who ran the credit check but it isn’t uncommon to see a credit application search on someone’s file following their financial associate applying for credit. From a future lender’s perspective, this could look like you’ve recently been applying for credit when you haven’t, so it is normally best to get old financial associates removed.

Before you can remove a financial associate from your credit report, you need to first ensure that all accounts with the individual have been closed. It then normally takes 4 to 6 weeks for the lender responsible for reporting the link to update the credit reference agencies that either the account has been closed or that one of your names has been removed from the credit agreement. You can then raise a disassociation request with the agencies.

Once the financial association is removed, their credit file ceases influencing your creditworthiness and your information stops being looked at when the past association applies for credit.

Check Your Multi-Agency Credit Report

Free For 30 Days

How To Remove Negative Markers on Your Credit Report

Your credit report is intended to show potential lenders, employers, landlords (and occasionally insurance providers) an accurate representation of what you are like when it comes to borrowing (and repaying) money and managing other credit agreements. Think of it as a CV of your borrowing history that gets updated on your behalf.

Published on 21 Apr 2018 by Jamie Mackenzie Smith

Full Article

Why Does My Credit File Say I'm Dead?

For many people, it comes as a shock when they are informed that they are, regrettably, dead. In fact, it can be a downright inconvenience when you’re trying to apply for credit, but end up getting turned down because you’ve been accidentally listed on the Death Register.

Published on 11 Apr 2018 by Tom Blandford

Full Article

Will checking my credit report affect my credit score

Does checking your credit report affect your credit score? This is a question we are often asked, as more and more consumers regularly access their credit history to check for errors. This seems to be based on the popular misconception that search footprints damage your score, and as checking your credit file leaves a footprint, checking your report must harm your score. However, this is far from the truth.

Published on 5 Apr 2018 by Kelly Luff

Full Article

What are address links and why are they on my file

At first the sheer amount of historic information held by Credit Reference Agencies can seem daunting when seen for the first time. This is certainly true for address links, which show all current and historic addresses recorded for you, as well as additional addresses that lenders think may be linked to you. But you can rest easy, because they're nothing to fear.

Published on 24 Mar 2018 by George Coburn

Full Article

How to Change Wrong Information on Your Credit Report

Making sure you have the right information on your credit report is essential, not just if you want to apply for any form of finance, but also because potential landlords and employers may want to check your information as well. But even if you think you’ve maintained a perfect credit history, the number of different sources of data that the UK’s four Credit Reference Agencies draw from leaves plenty of room for errors.

Published on 19 Mar 2018 by Katherine Cornell

Full Article

How long is your credit information really held for

When applying for credit, the majority of lenders will search for your credit files with the Credit Reference Agencies to determine whether they will be willing to lend to you. Any information obtained from the agencies can then be used in the lender’s evaluation of your creditworthiness.

Published on 15 Mar 2018 by Tom Blandford

Full Article

What Credit Searches Mean

One of the most commonly misunderstood aspects of credit files are the credit search footprints left on your report whenever someone accesses your file. One popular misconception is that ‘too many credit searches will put off potential lenders, but the truth is you’d have to make an alarmingly large number of applications for that to happen.

Published on 9 Mar 2018 by Kirstie Brown

Full Article

Arrangement to Pay markers

Have you seen an ‘AR’ mark on your credit file? Chances are you might glance at the letters and assume that they relate to payment arrears. However, on many credit file providers’ reports an ‘AR’ appearing on the payment history means an arrangement to pay has been recorded on the account.

Published on 20 Feb 2018 by Ben Ryland

Full Article

Credit search footprints left by comparison sites

If you’re one of the millions of people who use comparison websites to make sure you’re getting the most competitive insurance quotes, you might have noticed that every time you use a comparison site, you get an increased number of searches on your credit report.

Published on 16 Feb 2018 by Arron Dickens

Full Article

What doesn’t appear on your credit report?

People are often just as surprised at what isn’t reported on their credit file as what is. It can be a bit of a shock when they finally do come to check their report and find that a lot of their spending and earning has gone largely unheralded.

Published on 19 Jan 2018 by Tom Blandford

Full Article
keyboard_arrow_left

keyboard_arrow_right

We have loads of great customer reviews