MARTIN Lewis’ Money Saving Expert site has revealed how not to let your flatmate ruin your credit score.
Many of those living with a flatmate will be surprised to hear they can have negative effects on your credit score if you aren’t financially careful.
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Money Saving Expert has warned those living with a partner or flatmate about the dangers of being financially linked to them.
“Even just a joint bills account with flatmates can mean you are co-scored,” the site reads.
If your partner or flatmate has a “poor history” with their finances it is important that you financially distance yourself from them, according to the website.
By keeping “your finance rigidly separate, it should maintain access to good credit for you”.
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For those who have split up with their partner or stopped living with their flatmate, you need to “financially de-link” from them as you risk letting their credit score affect yours.
Four products link you with your other half or roommate – “a joint mortgage, a joint loan, a joint bank account and in certain circumstances, your utility bills”.
However, those whose bills have them and their flatmate’s name on it does not mean you are “financially linked”.
This only applies when the energy company is certain you’re in a relationship – “for example, when your bills are addressed ‘Mr and Mrs'”.
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The site also revealed the common mistake people make when they think they have a “joint credit card”.
These do not exist, according to the Money Saving Expert site.
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In reality “it’s one person’s account, the other just has a second card to access it”.
Martin Lewis‘ Money Saving Expert took to X, formerly known as Twitter, to warn and educate people on how not to let their “partner or flatmate’s credit score wreck yours”.
It comes after Martin Lewis called a huge change coming in the spring budget a huge “win” for first-time buyers.
And the MoneySavingExpert warned 1.1million Brits are missing out on a free £102 a week.
Ten credit boosting tips
- Never miss or be late on any credit repayments – it can have a disproportionate impact.
- Minimise credit applications by using MoneySavingExpert’s free eligibility calculators.
- Always check your credit files after rejection.
- Use a credit (re)build card to build a history & restore past issues.
- Don’t withdraw cash on credit cards.
- Paying your rent on time can boost your credit rating.
- Never pay for a credit repair company.
- Stability counts, use consistent details between applications and don’t overchurn.
- Reduce your debts with savings, if you have them.
- Don’t ‘spend’ your applications too often.
