{"id":122818,"date":"2018-08-30T13:23:45","date_gmt":"2018-08-30T12:23:45","guid":{"rendered":"https:\/\/www.finder.com\/uk\/?p=122818"},"modified":"2024-03-01T14:58:46","modified_gmt":"2024-03-01T14:58:46","slug":"other-people-credit-score","status":"publish","type":"post","link":"https:\/\/www.finder.com\/uk\/credit-score\/other-people-credit-score","title":{"rendered":"Can other people affect my credit score?"},"content":{"rendered":"

It can be difficult enough to build up a decent credit score on your own, so the fact that others could harm your chances of being approved for a personal loan<\/a> or credit card<\/a> could be disheartening.<\/p>

However, crucially, it also works the other way round. Your chances of being approved for a loan can be improved by making a joint application with someone who has a great credit score<\/a><\/p>

The myths and truths of how and when other people affect your credit file and your credit score are unveiled below.<\/p>

Financial associations<\/h3>

A financial association is another individual that you share finances with. A joint county court judgement<\/a> (CCJ) can also create a financial association. Your current financial associations are visible on your credit file, which is held by credit reference agencies (CRAs) like Experian, Equifax or TransUnion (formerly Callcredit).<\/p>

While your financial associations\u2019 credit scores should not directly affect your own, prospective lenders may choose to take financial associations into account when considering your individual applications for credit. In this way, their credit score could have an indirect effect on your credit score. Additionally, when you hold a joint financial product but the other person uses it irresponsibly (perhaps going into unauthorised overdraft on a joint account or defaulting on a joint loan repayment), both your credit scores will take a hit.<\/p>

Why would a prospective lender be interested in the credit scores of your financial associations? Well, they may worry that you might bail out your spouse, relative or business partner at the expense of your own financial obligations.<\/p>

When you cut financial ties with somebody, the financial association on your credit file should be removed. If it isn\u2019t, you can contact the credit reference agency with proof that you\u2019re no longer financially connected to them and request that the association is removed.<\/p>

Because a financial association can have a bearing on the outcome of your own applications for credit, you should think carefully before getting a joint account, applying for a loan in joint names or acting as a guarantor for somebody.<\/p>

\"Abstract<\/p>

Do the people I live with affect my credit score?<\/h3>

Your credit file will only show a financial association to somebody you live with if you jointly hold a financial product. For example, if you have a joint bank account that you use to pay household bills or if you apply for a joint loan to cover a larger household expense.<\/p>

If you apply for a financial product jointly with a housemate, both your credit files will be taken into account, and if the application is successful, a financial association will be added to your credit file. Until your financial ties with this person are cut, their credit score can have a bearing on future applications for credit, whether joint or individual.<\/p>

If you don\u2019t have a financial association to them, the credit scores of those living in your house won\u2019t affect your ability to get a loan at all.<\/p>

Does my spouse affect my credit score?<\/h3>

Marrying your sweetheart will only have a bearing on your credit file if you take out a financial product together. Chances are, if you\u2019re tying the knot, you either already have an account or mortgage in both your names or you\u2019re thinking of getting one.<\/p>

When you apply for a financial product together, the would-be lender will consider both your credit histories. Once you hold a financial product jointly, a financial association will be visible on your credit file. That means that prospective lenders may consider both your and your partner\u2019s credit scores \u2013 even if you\u2019re applying on your own \u2013 until all financial ties are cut.<\/p>

Bear in mind that if you\u2019re thinking of applying for a loan together, but one of you has bad credit, the other might stand a better chance by applying on their own.<\/p>