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Experian - Credit Crossroads

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Relationship Breakdown - Credit Crossroads

Experian is a leading UK credit reference agency. When you apply for credit, you will probably give the lender (the company you want credit from) permission to carry out a credit check through us. We do not decide who should get credit, but the information we provide may help the lender to decide.

We hope this guide will help you cope with credit after a relationship has broken down.

How it all works.

When you apply for credit, lenders have to make sure that you are who you say you are and live where you say you live. They also want to make sure that you are likely to be able to keep up the repayments. They will look at the information you give them when you apply (such as your job and income). They will also look at the information we hold about you, which we call your credit report (sometimes called your credit file)

It is important you understand the information on your credit report. Your credit report must also be up to date beacause it helps lenders check:

your name and address;
how you have managed credit in the past; and
how you are managing credit at the moment.

If your report shows that you repay credit on time, this will usually help you get credit. It will also help you get the best credit deals.

Once you close a credit account (such as credit card, a loan or mortgage), details of how you handled your payments stay on your report for six years. Negative information (such as a court judgment, a bankruptcy or a 'default' - a credit account you have broken the terms of) also stays on your report for six years.

You can ask our Consumer Help Service to send you a copy of your credit report. They will also send you information to help you understand it and answer any questions you have. You can also get help and advice from our website.

To order a copy of your credit report, visit www.experian.co.uk or call 0870 241 6212. It costs £2 if you apply online and £2.50 if you phone for a copy.

How to break the ties that bind

If you have been married, or lived with someone as a couple for a long time, you are likely to have applied for credit together and ahve had joint credit accounts (such as a joint mortgage or other loan, a joint bank account or a joint credit card). Links to that person's credit report are show as 'associations' on your credit report (that person would be known as an associate).

When a relationship ends, details of all associations stay on your credit report unless you tell us they need removing. We can remove them only if you no longer have any financial link with that person. If you no lover have any joint credit, the link can be broken.

Once you and the associate have sorted out your finances, let the credit reference agencies know that you no lover have a financial link with your ex-partner. If we break the link on your Experian credit report (known as creating a 'disassociation') we will tell the other agencies for you.

If you no longer live with yor ex-partner and the only remaining financiall link you share is a joint mortgage, we may still be able to create a dissociation to separate your credit reports. Ask you Consumer Help Service for details.

Update your records

If you do nothing, you could find that lenders take account of your ex-partners credit history when you apply for credit. If he or she has a poor credit history, this could prevent you from getting credit or could mean you pay higher interest.

If you do not want to be linked to your ex-partner in this way check what joint finances you have. Start by getting a copy of your credit report from us. When you ask to see your credit report,we will send you information about credit accounts in your own name or in joint names. You won't see financial information about any person you have a finacial link with , but you will see the names of anyone you are linked to.

Contact your lenders (or any company your joint accounts are with, such as a television-rental or mobile-phone company) and ask tehm to change their records.

This may not always be simple. For example, one of you might have to sign over the mortgage to the other. Or you might have to pay off one loan and apply for a new one. You may find you owe each other money.

Who is liable for what?

It is a good idea to press on with sorting your fiances out, even if it gets complicated. Most lenders are quite used to this situation and will help you sort things out. Tell them about your new circumstances. It is in their interest to make sure credit from them is not overlooked and that you all know who has to pay for what. If you are using a solciitor, he or she will help if necessary.

Once all your finances have been separated, contact teh credit reference agencies and arrange to have any links between you and your ex-partner removed from your credit report. Child maintenance payments do not count as a financial link.