Credit Rating by Association

james916

Hi,

Could someone please explian the concept of a 'financial tie' in relation to credit ratings?

I am looking to open a joint current account with my girlfriend, however she has a mortgage with her brother. His credit history is poor which has had a negative effect on hers. Would, by opening a joint current account with her, my credit raiting also be affected?

Also, if we wanted to take over the mortgage and 'buy out' her brother, would any credit checks at that point disregard her brothers credit rating as the new arrangement would cut the financial tie?

Thanks

James

james916

The FAQ on www.creditreportguide.org.uk states:

"If you have financial commitments with another person or people, such as a joint bank account or mortgage, the financial status of those other people could affect your application."

So clearly any financial association may affect ones credit rating. What isn't clear is how far (deep) the associations are considered.

bigheadxx

http://www.insolvencyhelpline.co.uk/debt_factsheets/credit_reference_agencies.php#8

Some info on here for you, in particular disassociation notice.