Girlfriends Debt record

auroan

Hi all,

New to the site and seeking some advice.

I'm a divorcee of about 3 years. I've been with my new girlfriend for about 2 years now and I have a few concerns how her finances may link to mine.

We're both 29.

The only debt I have is a car loan of £314 a month... (but I'm earning well into the 40% tax bracket so it's more than manageable). I currently rent after selling up at the peak of the housing market bubble (part forced by divorce). I have no other financial ties and I have a perfect credit history. Never been in the red, always paid of credit cards every month, never dipped into my over draft. Although I have no savings due to using them to pay off a personal loan due to the poor savings rates.

Now here is the problem.

My girlfriend... although having a medical degree and being a recently qualified teacher... has over £24K in student loan debt. She has also had a couple CCJs against her when she finished uni, and on several occasions has had debt companies chase her for things like unpaid phone bills, gym memberships etc when she's canned contracts without going through the proper procedures.

Her credit rating is atrocious. An example being that the only credit card she has charges her an astonishing 44% apr !!!!

She has now moved in with me in my rented house. None of the household bills are in joint names apart from the council tax (which I pay anyway, but York council refused to take her name off it?) and an amendment to the rental AST to include her.

In all cases I've tried to make sure my finances are in no way linked to hers, but the council tax and rental agreement worry me. Will these two "links" have cause to drag my credit rating down ?

I want to buy a house when the market sorts it's self out... but I want to keep my credit rating as good as possible to I have a better pick of the mortgage market.

So am I worrying for nothing or does anyone have any further tips ?

HappyMJ

Those 2 you mention are not credit agreements they are bills. If they go unpaid then they can go after either of you so if she doesn't pay they'll ask you if you don't pay then they can get eventually a CCJ for outstanding rent against either of you but you would have had ample opportunity to pay the bill before then so it won't affect you. Only once a CCJ is issued will it appear on your credit report.

KingElvis

I don't think CT or a rental agreement will show on your credit record. You would be well advised to keep a 40ft cattle prod between her finances and yours....love it may be, but a sensible head must prevail.

Things that would link you would be joint accounts and applications........

auroan

Cheers, what I thought, but just wanted confirming. Believe me there is no way on earth I'm going any where near a joint account or anything else with her.

I've told her this and she understands, not sure how this will stand up in the future though when it comes to house buying etc. She'll want to contribute if we stay together that long but to be honest I'd rather she didn't. Guess my head might be warning my heart of something ;-)

KingElvis

Not being nosey but has she grown out of it, you know all the debt and ignoring it stuff?

To be honest, with things as tight as they are she''ll have a hard job finding credit anyway, this may be for the best because you can use the next few years to educate her.

All the best.

auroan

I think she has. We had a very big blow up when I found out she got another student loan for her teaching course... when she didn't need one. She'd already got a bursery which would have been more than enough for her to live off as at the time she was still living at home.

Sometimes I think I'm more 39 than 29 and she's more 19 than 29.