Can a financial association affect a credit application?

A financial association is a link with another individual that’s created whenever you jointly apply for credit together – like a mortgage, secured loan, or joint bank account. Associations remain on your report indefinitely, but you can request their removal after any existing financial ties have ended. 

While a financial association doesn’t have a direct impact on your credit score, it can impact credit applications. When you apply for credit, potential lenders will review both your credit report and your association’s report to assess them jointly. For example, if you have a financial association on your report with adverse or negative credit history, like defaults or a CCJ, this could harm your approval chances.  

You may find it harder to get accepted or that the rates you’re offered are higher than they were before. 

This is because lenders are concerned about your ability to repay them. If they see that your financial association has large debts to pay, they may assume that you’ll need to help them repay these debts. 

It’s good practice to monitor your credit report and remove any financial associations that are no longer relevant. Read our guide here for guidance on how to do this. Keep in mind that it can take 4-6 weeks for lenders to update the credit reference agencies with new information, so any joint accounts you’ve recently closed won’t be reflected on your report instantly. 

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