Credit, Collections & Insolvency News
New data from Moneysupermarket has found that 94% of people don’t realise that ex-housemates could be impacting their credit score.
Teh dat found that 79% of people having lived with a flatmate, 94% remain unaware that joint financial products – like shared bank accounts or bills – can directly link their credit score to a housemate’s. These connections can linger indefinitely, even once the boxes are packed and the flatmate has moved out.
Only 8% of those surveyed claimed to actually financially trust the people they live with, leaving many at risk of entering risky arrangements.
The research also revealed just how many housemates people are going through. More than one in four (28%) say they’ve lost track of how many people they’ve shared a home with over the years, while the average 25–34-year-old has already lived with around 15 flatmates in total.
Over a quarter (27%) of 16–24-year-olds have already lived with as many as ten different flatmates, even though they are only at the beginning of their renting journey.
The financial fallout of living with multiple flatmates can be serious. One in ten 16–24-year-olds, and 14% of those aged 25–34, say they’ve had to cover missed payments on behalf of others to protect themselves – a habit that could leave lasting damage on their own credit history should they struggle to keep up with both their own commitments and someone else’s.
It’s not just young renters at risk either, the research revealed that almost half (43%) of over 45s are still renting, with one in ten saying they expect to rent for the rest of their lives.
Many renters are unknowingly creating new “credit ghosts” without realising it – tying their credit to housemates in ways that could come back to haunt them, including having joint bank accounts for bills – Almost one in 10 (9%) of 16–24-year-olds admitted to pooling money in a shared bank account with flatmates, not realising it creates a lasting financial link.
Having everyone named on bills – 9% of 25–34-year-olds list all flatmates on utility bills or contracts, meaning missed payments could affect everyone’s credit history, not just the person at fault.
Kara Gammell, finance expert at MoneySuperMarket said “Simply living with someone won’t affect your credit score, but creating a financial link with them can. Opening a joint account for bills or taking out shared credit means your credit files become linked, and their financial behaviour – good or bad – could impact your future applications.
“What many people don’t realise is that these financial associations last indefinitely unless you actively request to have them removed. Sharing a bathroom is one thing. Sharing your credit history for years after you’ve moved out? That’s a risk you don’t need to take.”
