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04/03/2020

What is a notice of disassociation?

04/03/2020

What is a notice of disassociation?

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If you’ve joined or shared finances with another person at any point, then it may show on your credit file. Not everyone wants this, and so applies for a notice of disassociation.

Financial association happens when you make a joint application for credit with someone; whether this be your partner, spouse, friend or family member. This could be for anything from mortgages and bank accounts to a loan application.

Put simply, a notice of disassociation is asking to become no longer financially associated with someone you once shared accounts with.

This is commonly done when relationships break down and couples are looking to separate everything money related. This can be a huge benefit to those dealing with ex-partners who have a lot of debt as it can help prevent your credit score being affected as well.

How do I get a notice of disassociation?

You can request a notice of disassociation from credit reference agencies such as Experian or Equifax. All joint accounts must be closed before this can be issued, however – if anything is still active, you won’t be able to disassociate yourself.

You may be asked for proof that your financial connection has been broken, so be prepared with as much documentation as you can. This includes divorce papers, documentation showing you no longer live together – such as transfer of ownership or sale of the property – and paperwork from the creditors confirming that you are no longer named on the accounts.

Does bad credit affect the household?

When you live together, it doesn’t necessarily mean that you automatically become financially associated. The main exception to this is if you have a joint mortgage.

If you are married, you may find that your partner’s financial situation may be taken into account, even if you’re making a sole application. As such, if one of you had bad credit, you may find applications being rejected.

One important thing to remember though is that there’s no such thing as a blacklist of addresses based on credit scores.

Does your partner’s credit rating affect yours?

Generally, your partner’s credit rating will not affect your own. However, if one of you has a poor credit rating, you’ll likely find being accepted for joint applications difficult

If you are financially associated in any way, then this will be different. Any joint accounts will show on both of your credit reports, and you’ll share the responsibility of paying the balance.

If one of you defaults or misses payments, then this will flag on their credit report and potentially on yours too – which could make it difficult for you to get credit.

As such, although your credit ratings will be separate, it’s a good idea to make sure both are in good health before linking your finances together.

How do I disassociate myself from someone financially Equifax?

In order for you to register a notice of disassociation with Equifax, you’ll need to fill in a form and submit it either by post or by email.

You’ll need to provide personal details for both you and the person you want to disassociate from. In some cases, you may be asked for proof that accounts are now either solely in your name or that you are not named on the account at all. Our advice is to send this with the form to Equifax to make sure you’ve covered yourself.

How long this will take isn’t clear, but the general consensus seems to be that the notices will be registered within 28 days.

How do I disassociate someone from my credit file?

The process across the credit reference agencies is similar to above, however with Experian you can complete it all online.

As mentioned above, you will need to ensure that all joint accounts are clear, closed down or transferred into a single name. Most forms will have a check list for you to complete stating what accounts you no longer want to be linked to and confirming that you no longer live together, and your incomes are separate.

It’s important to be truthful when dealing with this as if you are found to have lied and then obtained credit as a result, it is considered a criminal offence.

Is it bad to disassociate?

This will depend on your situation. If your score is being brought down by an ex-partner/spouse, friend or family member, then it’s likely to be in your best interests to request a notice of disassociation.

If you are financially associated to someone with a bad credit rating, this could bring your own down, so disassociating yourself will benefit you in the long run.

It will also depend on personal preference. For example, a couple who have split amicably with joint accounts and good credit scores may see no issue with leaving themselves financially linked – but others may not.

However, it’s probably best to sever ties regardless to avoid your credit file being affected in the future.

If you’re struggling with money worries and joint debts, we can help. Our advisers are on hand to offer you free and confidential advice to help you work through your debts, regardless of your situation. Contact us on 0808 2234 102 or click the button below to be connected.