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Ex-partners, debts and credit ratings

19/10/2009

Someone`s own credit rating can be affected by the way their ex-partner handles their debt and their finances, a press release from Experian warns.

Entitled "Ex-factor" threatens Britons` finances, the press release points out that the behaviour of someone`s ex-partner can have an impact on their credit rating without them even knowing it. Yet Experian calculates that 55% of Britons do not realise that this is possible.

`Just making one joint application for credit means you become financially linked even if the account is closed down or never actually opens in the first place,` the PR states. `This financial association can damage your credit rating long term if you do not remove it, as you suffer for your ex`s bad habits.`

Furthermore, one in five Britons admit they hide their debt and money worries from their partner, and - of those currently in a relationship and sharing finances - one in ten admit to keeping a bank account secret from their partner.

"We tend to be more worried about who our ex might be dating next than the more significant issue of what debts they could be racking up. One worry will pass with time, the damage to your credit rating might last a lot longer," says Darryl Bowman, Director at CreditExpert, the online credit monitoring and identity fraud protection service from Experian.

Mr Bowman goes on to recommend that people close any joint accounts they may still have with an ex-partner, and `inform us that you are no longer connected`.

"Money and debt may not be the first things to cross someone`s mind when they separate from a partner," said a spokesperson for Debt Advisers Direct, "yet this is clearly an important issue, as damage to their credit rating could make it a lot harder for them to clear their debts."

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Debt Advisers Direct offer free debt advice and a range of debt solutions, including debt management plans, debt consolidation loans and IVAs (Individual Voluntary Arrangements).

More than 4 million fear they`ll be made redundant 16/12/2010 - According to R3`s quarterly personal debt tracker, more than 4 Consumers took on more mortgage debt in July 26/08/2010 - Consumers took on £2bn more mortgage debt than they repaid Debts called in by parents 26/08/2010 - According to research, `the bank of Mum and Dad` is Teenagers `scared of debt` 19/08/2010 - Nearly two thirds of teenagers are `scared` of debt, according