Would-be borrowers should consider the impact an ex-partner, with whom they shared financial products, could have on their credit score before applying for a mortgage.
That’s according to credit scoring firm, ClearScore, which has discovered the majority of people did not realise they could face credit rejection because of financial mistakes made by their ex.
This is because, even if you have parted ways, you will remain financially linked for six years, even after a joint product has been closed down.
It is advising people to check their credit reports to ensure they aren’t connected to any ex partners because, if they have a poor financial history, this could damage your own chances of being accepted for a mortgage.
ClearScore explained, when you apply for credit, banks and lenders can look at any financial connections you have if you are still linked to someone whose financial behaviour you suspect could be detrimental.
Justin Basini, CEO of ClearScore, said: “People are at risk of being haunted by the financial ghosts of partners past.
“Even if your own credit report and score are in rude health, the way you are viewed by lenders can be negatively affected by your ex partners.”
Uncoupling your finances
Basini explained, when your relationship ends, it’s your responsibility to ‘uncouple’ your financial records. He said: “I would 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.”
Some other tips ClearScore offers to help improve your credit score include getting onto the electoral roll, a move which will help ensure credit reference agencies can verify who you are and make you appear more stable to lenders.
Meanwhile, using credit responsibly, by keeping a credit card active and spending small amounts which you pay off each month, will demonstrate you can manage debt.
It also advises ensuring the details the bank has match your current address. Also, do not to apply for multiple cards, make sure you put your name on all utility bills and close any old bank accounts or cards.
