LONDON, 18th April 2018: New findings from global information services company Experian reveals that almost one in six (15%) people in the UK say they have been negatively impacted by their current partner or ex’s credit history.
When couples apply for a joint financial product such as a bank account, loan or mortgage, their credit reports are likely to become “linked”. This means that lenders may look at both credit reports when deciding what credit or financial services to offer, and at what rate, for both joint and individual credit applications made in the future.
The research, which involved speaking to 3,000 people across Britain, reveals that one in four people (24%) believe their credit applications have been negatively impacted by another individual. The majority (10%) say they’ve been detrimentally impacted by their partner, 5% by their ex-partner, 5% by someone they were or currently live with, 4% by a parent, 4% by a child and 1% by a friend.
On the flipside, 22% of Brits admit that their credit history has negatively impacted someone else’s ability to get access to credit, and at preferential rates. 12% say it’s affected their partner, 5% someone they were or currently live with, 4% a child, 4% a parent, 2% an ex-partner and 1% a friend.
Financial ties can have a positive or negative impact. If your partner has a more positive credit history, it could mean lenders view your credit application more favourably, potentially meaning better lending rates. However, if your partner has previous bad debt or missed payments on their credit report, it could be affecting your own financial trajectory because the way they manage money may be considered in assessing whether you can keep up with repayments.
James Jones, Head of Consumer Affairs at Experian, comments:
‘By understanding how our finances can become tied to a partner, both for better and for worse, couples can be a financial force to be reckoned with. If couples are open about finances and work together to improve their credit reports and scores, they will be at an advantage when it comes to key financial milestones such as applying for a mortgage together.
The key is to begin talking about finances before you take large financial steps, such as opening a joint bank account or applying for joint credit. By doing this, you’ll both have an idea of what you can achieve and how you may need to improve, and can work together where improvements need to be made.’
Money & relationships
Experian’s research shows that people rate finances as an important factor in a spouse or long-term partner. A third of Brits (33%) think having a partner that is good with money is ‘very important’, rating this over good looks (14%) and a good job (26%).
However, many people are missing out on having informed conversations when talking about money in a relationship, with less than half (42%) saying that they would speak to their partner about their credit history.
James Jones shares his top tips for discussing money when in a relationship.
Notes to Editors
The research was commissioned by Censuswide using 3,034 respondents, polling a representative selection of the UK population. The survey was in the field from 10/11/17 until 13/11/17.
Priya Sahib, PR Manager – Experian
+44 (0) 203 042 4573
Lucy Hastilow, Senior Account Director – Marlin PR
+44 (0)7880 315 185
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