Protect your finances from your ex!

Don't let your ex-partner's behaviour destroy your excellent credit rating.

It's a sad fact of modern life that relationships break down all the time. But did you know the financial ties you have with your partner don't necessarily break when the two of you separate?

According to CreditExpert.co.uk, more than half of you have absolutely no idea that an ex-partner can have a negative impact on your own credit rating. Even if your ex seemed to be pretty good at managing their money when you were together, who's to say what their financial behaviour might be like now?

This problem is more widespread than you might realise. Often we don't even know the full picture when it comes to our current partner's finances, let alone our previous partners. After all, one in ten people in relationships confess they have a secret bank account their other half doesn't know anything about, while one in five keeps debts hidden.

How do you become financially linked?

Just one joint application for credit means you're financially linked even if the account is now closed, or never actually got up and running in the first place. In other words, a declined application can still link the two of you together.

This financial association could damage your credit rating over the long term if your ex is now racking up debts all over the place and failing to manage them properly.

Many of you think your credit score will be affected by anyone who lives with you. But this isn't true. Just because you lived with your ex, you won't be financially connected with them unless you applied for some form of credit jointly. This even applies if you were married but never shared your finances.

By the same token, if you never actually shared the same address, but you applied for credit together, a financial tie will be created.

How can you become financially separated?

You don't want to suffer just because your ex can't handle credit. It's hardly fair that your own ability to borrow could be jeopardised by someone who is no longer part of your life. But what can you do about it?

Luckily, there's decisive action you can take now to break the financial ties with your former partner before they do you any harm.

Check your credit report

The first step is to check your credit report. You can do this at any one of the three major credit reference agencies: Experian, Equifax or Call Credit, although you can get a free credit report from Experian. You can use your report to check who you are still financially connected with. Remember checking your report won't do any damage to your credit score or credit rating.

Tell the credit rating agency that the relationship is now over and ask them to update their records accordingly. This creates a financial 'disassociation' from your ex and prevents their credit record from affecting yours in the future.

It's a good idea to monitor your report on a regular basis so you can be sure the financial separation is well and truly behind you.

Settle up and close your joint accounts

The next thing you should do is settle up any outstanding credit agreements you still have with your ex. After a separation, it's inevitable you'll need to negotiate a way of dealing with your joint debts - and your joint finances in general. The sooner you do this, the better.

Once your debts have been fully repaid, it's important the accounts are closed. For example, a credit card where your ex is an additional cardholder may still appear on your credit record even if there's no outstanding balance. Make sure you contact the bank and ask them to cancel the card to sever the financial association.

You should do the same thing with any lender where you have held a joint credit agreement and with any other company where you have had a joint account, such as your gas and electricity supplier.

What about your current relationship?

It's not just ex-partners you may need to be worry about. Financial associations with your current partner can also create havoc with your credit rating. Read Don't let a partner ruin your credit rating for more advice.

Finally, if you have a burning question about your finances and your ex- or current partner, why not ask other lovemoney.com readers for help at Q&A? Many have been through similar experiences and can offer tips on what to do.

Get a free credit report from Experian

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