Credit Score Basics > What does a financial associate mean on my credit report?

What does a financial associate mean on my credit report?

Wollit Team3 minute read · Updated 17th September 2024

If you see "financial associate" on your credit report, it’s important to understand what this means and how it can affect your finances. Here is what financial associates are, how they impact your credit score, and what you can do about them.

What is a financial associate?

A financial associate is someone you share a financial connection with. This connection usually happens when you have a joint financial agreement, like a mortgage or a shared credit card.

How do financial associations happen?

You become financially associated with someone when:

You open a joint bank account: If you and another person have a bank account together, this creates a financial link.
You apply for credit together: If you take out a loan or mortgage with someone, you both become financial associates.
You share debts: If you are both responsible for paying off debts like credit cards or utility bills, this also counts.

It’s important to remember that just living at the same address or being married does not automatically make someone your financial associate. You need some sort of joint credit account. This can be a joint credit card, a joint bank account with overdraft, or even a joint utility bill.

How do financial associates affect my credit score?

Your credit score is a number that shows how reliable you are when it comes to borrowing money. Here’s how having a financial associate can impact your score:

When you apply for credit, lenders look at both your credit history and that of your financial associates. If your associate has a bad credit history—like missed payments or defaults—it can make it harder for you to get credit.
Lenders may see you as a higher risk if your financial associate has poor credit. They might worry that you could be responsible for helping them pay their debts, which could affect your ability to pay back new loans.
Your score can be affected by negative marks on your associate's credit report. For example, if they have defaults or County Court Judgments (CCJs), these could lower your score too.

How can I check if I have financial associates?

To see who you’re financially associated with, start by checking your credit report. Here’s how:

You can get your full credit reports for free from Experian, ClearScore (for your Equifax report), and Credit Karma (for your TransUnion report).
Once you have your reports, look for the section on financial associations. This will list all the people with whom you share financial connections.
Make sure all listed associates are current and accurate. If there are errors in there, dispute them with the agency. They can sort it out.

How can I remove financial associates from my credit report?

If you no longer share finances with an associate, it’s wise to remove them from your report so their behavior doesn’t affect you anymore. Here’s how:

Reach out to each agency where the association is recorded (Experian, Equifax, TransUnion) and request to disassociate from the individual.
Submit a “Notice of Disassociation”. This effectively removes the financial association from your report.
Be ready to show proof that the financial connection has ended—this could include closing joint accounts or providing evidence of separation if applicable.

When should I review my financial associations?

Certain life events are good times to check and update your financial associations:

Moving away from a shared home – to make sure that you don't have associations with former flatmates with whom you might have shared a utility bill.
Moving in with a partner;
Getting married or divorced;
Buying a home;
If someone linked financially passes away;.
And pretty much any time you take new credit.

Does being married automatically create financial associations?

No, marriage alone does not create these links unless there are joint accounts or shared debts involved.

What else can I do?

Besides removing unwanted financial associates, the most important thing you can do is to build your own credit score, independent of anyone else.

Luckily, now there are many apps that can help you build and improve credit.

One such app is Wollit. Wollit is an app available both on Android and iOS, and it works by reporting a fixed-fee monthly subscription as a loan repayment to all three credit reference agencies.

This gives you a chance to continue building your own credit history and improve your credit score without the fear of financial associations and without having to be linked with someone else’s credit rating.