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What is a notice of disassociation?
A notice of disassociation is how you break the financial ties with another person that are recorded as part of your credit history.
To find out if you’ve ever tied your finances together with someone else, ask yourself if you have ever:
- Taken out a form of credit with another person – such as a joint loan or mortgage.
- Taken out a joint bank account with someone else.
If either of these answers is a yes, it’s likely that your credit histories’ will be connected. To find out for certain you should check your credit report using free services Noddle and ClearScore to look under the section “financial associations” and see if the person’s name appears there.
What does having your finances linked mean?
It simply means that lenders will be able to see anyone you have tied your finances to on your credit history. So, they could take their credit history into consideration when reviewing your application for credit.
If their credit history is significantly damaged, this could end up having a negative consequence on your chances of being approved for credit.
Although it won’t directly affect the credit score that each credit reference agency gives to you, lenders will be able to see it and they may deem you to be too risky to lend to if you are financially tied to someone with high levels of debt or a bad credit history.
Breaking the link
Whether it’s a partner you have separated from or a friend or family member that has high levels of debt or a damaged credit history, it’s probably a good idea to break the financial ties between you so your chances of getting credit in the future aren’t in jeopardy.
Even if your ex-partner doesn’t have a damaged credit history, it’s best to sever any financial ties in case their debt starts to affect you in the future.
The only way to pull apart your financial ties is to apply for what is called a financial disassociation. You’ll have to do this with each of the three credit reference agencies (Experian, Equifax and Callcredit) to get it taken off all of their systems. This is because each lender will check your credit history with one of the three, so you’ll be cleared in all cases by doing this.
Thankfully, it’s not a difficult job. We’ve taken some of the leg work out for you, and you can find all three of the disassociation request forms by clicking on each of the agencies here: Experian, Equifax and Callcredit.
It’s easy to get a financial association removed from your credit report, but there are some instances where you’ll be unable to.
For example, if you still have an outstanding form of credit with the person in question, you won’t be able to break your ties with them. The credit – whether it’s a loan or a current account overdraft - must be repaid before you can proceed.
If your only financial tie is a joint mortgage, you must have been living apart for six months before you can get your finances separated.