Martin Lewis’s MSE warns of a housemate mistake that could ‘destroy your credit score’
MARTIN Lewis’s Money Saving Expert site has revealed how not to let your flatmate ruin your credit score.
Many of those who live with a roommate will be surprised to learn that this can negatively impact your credit score if you are not financially prudent.
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Money Saving Expert has warned people who live with a partner or housemate about the dangers of financial ties with them.
“Even just having a joint account with housemates can mean that you score,” the site reads.
If your partner or roommate has a “bad history” with their finances, it is important that you distance yourself from them financially, according to the website.
By “keeping your finances strictly separate, it should preserve your access to good credit.”
For those who have split up with their partner or are no longer living with their roommate, you should ‘financially disconnect’ as you run the risk of their credit score affecting yours.
Four products connect you to your significant other or housemate: “a joint mortgage, a joint loan, a joint bank account and in certain circumstances your energy bills”.
However, those whose accounts have these and their roommate’s name on them does not mean you are “financially connected.”
This only applies if the energy company is certain that you have a relationship – ‘for example if your bills are addressed as ‘Mr and Mrs”.
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.
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 ruin yours”.
It comes after Martin Lewis called a huge change in the spring budget a huge ‘win’ for first-time buyers.
And the MoneySavingExpert warned that 1.1 million Brits are missing out on a free £102 a week.
Ten credit-enhancing tips
- Never miss credit repayments or be late; this can have a disproportionate impact.
- Minimize loan 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 and fix previous problems.
- Do not withdraw cash with credit cards.
- Paying your rent on time can improve your credit score.
- Never pay for a credit repair company.
- Stability counts, use consistent details between applications and avoid overflow.
- Reduce your debt with savings, if you have it.
- Don’t release your applications too often.