Your credit history and your home addresses
Your credit history is about your use of credit. It isn’t a record of the financial history of people who’ve lived at your address.
This means you don’t need to worry about the credit histories of people who have previously lived at your address, or who currently share a home with you – unless you have any joint credit or debts, ‘linking’ your credit histories.
Linked credit files and joint debts
If you’ve taken out any credit agreement in joint names, with someone else, your credit file will show a link or association to them.
This means your poor credit history may affect them and vice versa. This could apply to joint loans or bank accounts, or cases where someone else has acted as a loan guarantor for you.
If you have any joint accounts included in your credit file but you no longer have any connection to the person involved, you can ask for your credit files to be ‘disassociated’.
This removes the link between your credit file and theirs. You can only do this if the joint account has been paid off in full and you don’t live with the other person.
To apply for disassociation, you need to contact the credit reference agencies directly.
What do I do if the information on my credit report is wrong?
You can contact either the credit reference agency or the lender to tell them, and they should update their records.
Will my credit history affect my job?
Some employers credit check new or existing staff, but this is only likely to happen in parts of the financial and legal services sectors.
Some employers credit check new or existing staff, but this is only likely to happen in parts of the financial services sector.
If you think your
credit history might cause problems at work, speak to your union rep, or ask to speak to your HR department confidentially about the possible consequences.
Can I get a mortgage with a bad credit history?
A mortgage lender will credit check you and they may refuse you a mortgage or charge you a higher rate of interest if you have a poor credit history. Some companies specialise in lending mortgages to people with poor credit, but they’re likely to charge much higher interest.
Can I rent a property with a poor credit history?
Many landlords or letting agents perform a credit check. You’ll have to give them permission to access your credit file, so you should know this is happening.
They may refuse you a tenancy, or they could ask for a guarantor or larger deposit. Some landlords only check public information such as the public registers of court judgments or insolvency, so a record of missed payments or defaults to other debts won’t always affect your tenancy application.
Will my credit affect my car insurance?
Insurers will credit check you, and if you pay in monthly instalments there’s a risk that a poor credit history could mean paying a higher rate of interest. In our experience it’s very unlikely that a poor credit history will stop you getting an insurance policy.