How your ex could cost you more than a broken heart: Millions of Brits being credit blacklisted because of former partner's money troubles (2024)

• Nearly seven million Brits had credit ratings affected by the poor finances of a partner, including many who have long since split up
  
• Problems occur when unmarried couples get joint loans, mortgages, credit cards or bank accounts
• Solution is to get a 'financial disassociation' - a monetary version of a divorce - when separating
  

By Lucy Waterlow for MailOnline

Published: 15:11, 25 February 2013 | Updated: 15:11, 25 February 2013

A failed romance won't just cost you time, tears and heart ache, millions of Brits are finding a relationship breakdown can also bring the additional stress of being credit blacklisted as a result of their ex's money troubles.

Nearly seven million Britons have seen their credit ratings affected by the poor finances of a partner, including many who have long since split with that person.

But unless they have applied for the equivalent of a financial divorce, even responsible adults could find themselves turned down for a loan or credit card because of a former lover.

Analysts Experian CreditExpert estimates up to 6.8 million Britons - around one in seven of the adult population - have suffered money troubles because of a romantic relationship.

Almost half of these (47 per cent) have been affected by the problems of an ex-partner and a third (33 per cent) are still affected up to three years after the relationship has ended.

The survey of over 3,000 adults also found one in four (25 per cent) ex-lovers struggled to get a loan as a result of a former partner's credit rating and 18 per cent were set a higher interest rate as a result.

Problems occur when unmarried couples get joint loans, mortgages, credit cards or bank accounts - which 57 per cent of the couples said they did to prove how committed they were.

But if one of the couple gets into financial trouble, even on an individual rather than joint account, the other is listed as being 'financially associated' and so their rating suffers too.

This can happen if one of the pair defaults on a loan repayment or does not pay their credit card bill for instance.

When couples split, it is possible to file for a 'financial disassociation', a monetary version of a divorce which means the two individuals are no longer classed as a couple to lenders.

Yet few individuals tend to do this, said Experian, even though it could repair any damaged credit rating in as little as nine months.

Experian managing director Peter Turner said: 'Financial ties, such as a joint mortgage, a joint bank account or a partner's name on a credit card, will be viewed on a credit report as an 'association' to your spouse or partner.

'This association will stay on a credit report - regardless of whether the relationship has ended or not - unless a request to have it removed is made.

'It can be painful to have to think about finances in the middle of a break-up but it can be the first step towards regaining your financial independence.'

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