Separate Credit Records

Helonearth

Hi all,

Not certain this is the right place for this question, but I'm sure someone can point me in the right direction.

I'm looking at moving in with my lovely lovely boyfriend in the next few months, but don't really want to be financially linked with him quite yet. I have a flat of my own which I am paying a mortgage on, and a very good credit record. He has got arrangements and defaults all over the place which he is working very hard to clear. :rolleyes:

I am going to rent out my flat and we will rent a new place for the two of us, which keeps my investment in my place separate. I think it would be hugely beneficial for us to have my record separate to his, so that if we do need to borrow money for an emergency, we can do it in my name at a reasonable rate.

My question is, how do we go about this? Obviously, we don't apply for any accounts or credit in joint names, but would the tenancy on a flat create a link between us? Would we have to be jointly credit searched for a phone line or similar domestic essential?

I used to work in finance, but I think things have changed in the last few years regarding financial links.

Thanks in advance

H x

TAG

I'm not 100% sure but I would of thought that a joint tenancy agreement would link you financially. As you would both be liable for the rent.

How old are his defaults? Would it be more feasible to wait a bit maybe until these have dropped off his credit files?

Meanymoo

I don't think a tenancy agreement would link you financially. Tenancy agreements don't show up on your credit record and I've shared rented houses (joint tenancies) with many friends none of whom have ever shown up on my credit record. I thought it was an urban myth that your "bad credit" could be due to someone dodgy having lived at your address at some point - that in fact sharing an address with someone is not an issue. I think you're sensible not to want to be financially linked until he's sorted his own record out though. Just don't open any joint accounts.

If I'm wrong about the tenancy agreement not linking you financially, then you could solve the problem by having the tenancy drawn up in your name, with your OH named as a resident but not responsible for the rent. My DH and I did this when we signed a tenancy agreement last year: I am a full-time student therefore not earning, so the agreement had to be drawn up in DH's name because their "computer said" he was capable of paying the rent but I was a risk (despite having an EXCELLENT credit record myself and proof of financial support for my studies)! Only do this if you absolutely trust your OH not to run off and leave you with all the rent to pay though, obviously!:D

Helonearth

TAG wrote: »

How old are his defaults? Would it be more feasible to wait a bit maybe until these have dropped off his credit files?

I think it would be a bit more feasible if it weren't for the fact that we live 300 miles apart and hardly seeing each other and the huge petrol bills are driving us mad! :mad:

Helonearth

Meanymoo wrote: »

If I'm wrong about the tenancy agreement not linking you financially, then you could solve the problem by having the tenancy drawn up in your name, with your OH named as a resident but not responsible for the rent.

I guess this is another option, as long as the landlord doesn't object. Would we be able to put council tax, phone bills, electric etc solely in my name as well?

I've never thought about it before as I own my flat on my own, and my parents are married so everything was in joint names at their place.

funky-footprints

Meanymoo wrote: »

I thought it was an urban myth that your "bad credit" could be due to someone dodgy having lived at your address at some point - that in fact sharing an address with someone is not an issue.

its not an urban myth .. i have never lived with my brother in law, yet when he left the country he left our address to forward all his mail too.

We had a few years of messiness trying to stop the phone calls and letters from various companies that were after him !! we applied for our credit files and couldnt believe how he appeared on our records. he even appeared on my mothers credit file, at another address, as my maiden name shared initials with my mum. We were refused credit cards, and had a real battle when we put our house on the market as we were refused a mortagage ! It was eventually sorted, we lay low for a couple of years, didnt apply for any credit at all, and it slowly resolved itself.

This was all a few years back, so I hope things have changed !

Last week i received a letter from council tax chasing a tenant of ours from one of our houses, ( we had to evict her for arrears) the council tax are chasing up for payment of council tax for 2 years prior to me even knowing her !!! I rang them immediately, demanding her name and my address be unlinked. I know she is in serious debt as the mail that arrived at the house after she left, indicated so, however i am now dreading anything else arriving here !!!

daphne_descends

As long as you do not have a joint account with him then he will NOT affect your ability to obtain credit. People can show on your file as listed at the same address but it means nothing and is a record of the electoral register only.

I'd suggest the 'house buying, renting and selling' forum for more - especially if you're planning to rent out your own flat.

frivolous_fay

I'm surprised people are saying sharing addresses doesn't affect your credit record.

A few years back I got my Experian file, and had to remove associations with my father, brother and sister. I could tell who they banked with, who they'd made late payments to, and what catalogues they bought from. I'd be surprised if none of that was taken into consideration - if it wasn't, why would it appear on MY record?

Helonearth

fac73 wrote: »

I'd suggest the 'house buying, renting and selling' forum for more - especially if you're planning to rent out your own flat.

I probably would have tried that forum, if it weren't for the people on it. I stuck my head round the door once and would never go near it again! I know that these boards are mainly in place for advice, but no-one on there seems to ever have a laugh about anything.

Helonearth

frivolous_fay wrote: »

I'm surprised people are saying sharing addresses doesn't affect your credit record.

A few years back I got my Experian file, and had to remove associations with my father, brother and sister. I could tell who they banked with, who they'd made late payments to, and what catalogues they bought from. I'd be surprised if none of that was taken into consideration - if it wasn't, why would it appear on MY record?

I think from the sounds of it, my best plan will be to do my best not to create any associations, and then keep an eye on my record to make sure that if anything does pop up I can get it taken off again.

Thanks for your advice everyone!

margaretclare

We're an older married couple, retired, and we have a lot of things in separate names. We have one joint account that we both tip into to pay bills and we have the property title in joint names - apart from that, we have our own accounts and we're very credit-worthy. It's possible to have electricity etc in your name alone and that doesn't show up on a credit report. However, even though we have most things separate, if I send for a report from Experian, DH's details do show up, including his previous address!

HTH

Margaret