COULD YOUR EX BE DAMAGING YOUR CREDIT SCORE?
Ex-partners could be causing financial misery for millions of Brits, according to new research from free credit checking service ClearScore.
Exes with poor financial histories could be the reason that many of us are turned down for mortgages, credit cards or other financial products. Once you’ve taken out a joint financial product with someone, a connection is created that remains on both of your credit reports for six years, even after the account is closed or you separate from that person.
When applying for credit products, banks and lenders can look at any financial connections you have. That means the 11.7 million Brits who have taken out a joint product in the past could be refused credit if their ex-partner has a history of financial behaviour that lenders frown upon.
7 million Brits have taken out a joint financial product with a partner they’re now separated from1 69% of Brits don’t know that you remain financially “linked” for six years, even after a joint product has been closed down ClearScore advising people to severe financial connections with past partners in advance of applying for credit
However, nearly seven in ten (69%) Brits are unaware that a connection still exists after an account is closed. And 94% of the people who understand they remain connected wrongly believe they are connected for fewer than six years.
Ensuring you are desirable for lenders is essential in getting the best deals available on everything from credit cards to mobile phone contracts. Figures shows that up to 60% of credit card applications are rejected each year.2
According to the research, over half (51%) think taking out a joint financial product with a partner from whom they’ve since separated has negatively affected their credit score.
1 Research conducted with 2,109 UK adults (aged 18+) by Censuswide between 8-9 February 2017
2 Figures from Totally Money
ClearScore is a service that allows consumers to access their credit report and scores for free, forever. ClearScore was co-founded by CEO Justin Basini and investors Brightbridge, Blenheim Chalcot and QED Investors.