Financial Associations Causing Finance Applications To Be Declined

Friday, 14. February 2014

Most people are aware that in order to be approved for finance you need to have a reasonably good credit score. You maintain a good credit score, as you know, by making credit payments on time (pay by direct debit wherever possible), not gaining CCJ’s, defaulting or going into arrears and not applying for credit to too many companies at the same time.

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Closing down old credit cards can also help. But I have had a few ‘declines’ just recently because of financial associations that, in a few cases, were no longer in existance. When you apply for credit you can only have your personal details searched so if you have a partner who has very poor credit or could even be bankrupt, they cannot be checked out unless you give permission or you have a financial association.

If you are shown to have a financial association with anyone the chances are that their credit status will also be taken into account. So if you are applying for finance and you and your partner have a joint mortgage or a joint credit card there is a financial association. One client had a girlfriend and they jointly applied for a credit card and were approved at the time.

They didn’t take out the card and split up shortly afterwards but one of them ran into some severe financial difficulties. As the financial association was still showing on the credit reference agency file the unknowing boyfriend was declined for car finance because of the difficulties experienced by the ex girlfriend.

So check your credit reference files and if you are showing any financial associations with any ex’s make sure you write to the credit reference agencies (all 3) and tell them that you no longer have any financial association with your ex, and to remove the link. By Graham Hill