One in 10 couples (11 per cent) has had to postpone taking out a joint credit agreement, such as their first mortgage, because of one partner’s credit score, according to new research.
The study by Experian also shows that 17 per cent of Britons have seen their or their partner’s credit score harmed through their relationships.
When couples’ finances become linked through joint financial agreements – such as a mortgage – their credit reports become linked.
If one partner has a less than perfect history of managing money and repaying debt, it therefore could affect the other’s chances of getting credit in the future and at the best rates.
Among those couples whose credit scores had been affected by their relationship,
• 20 per cent found getting a mortgage more difficult or expensive
• 8 per cent were unable to secure one at all
• 23 per cent were unable to get a credit card
• 21 per cent were unable to take out store credit
Think you struggle with financial incompatibility with your partner?
Behavioural psychologist Jo Hemmings, in partnership with Experian, has produced these simple steps to help you both get on track for a bright future.
1. Remember that no two people are the same and we all need to have our guilty pleasures. The key is to work at understand what shared goals you both have, and how you both can together work to achieve them
2. Joint financial agreements are not the best solution for every couple, as once you have a joint account your credit rating can becomes inter-dependent and so if there are any debt skeletons in the closet it can impact on you both getting credit into the future
3. If you already have a joint account and one partner has a very poor credit rating, as long there is no outstanding debt, you can close the account and break the association to each other by contacting a credit referencing agency such as Experian
4. When you reach a position where you can be truly honest and upfront with each other about you past and current financial situation, look at your credit report online where you can both see not only your credit history for the last six years but also your credit score which is a really good indication of how lenders are likely to view any applications you make in the near future
5. You will also see if there are things you may be doing wrong that are damaging your credit rating, and so you can take the time to learn how you can improve the picture your credit report paints of you
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