Is it time to bank up together?

Before committing themselves to a relationship, almost a quarter of people in the UK search out credit information on their partners – and no wonder. If your other half has a record of bad debts, missed payments or court judgments, then you could find it impossible to get credit yourself, or face high interest rates, even though you have a perfect payment history.

Two can live as cheaply as one, goes the old saying ­– but not if one of the pair has a bad credit record. If you set up home together and opt for a joint account, you can find it difficult to get the best deals on credit cards, loans and mortgages. The resulting money worries can place a damper on your romance.

So it's hardly surprising that, according to research from the credit monitoring service CreditExpert, 17 per cent of us ask our partners about their credit history, a figure that rises to 25.8 per cent among cohabiting couples.

Start with your credit reports

Before you decide whether a joint account – maybe a bank account for household expenses, a mortgage or simply a credit card – is better than keeping your money separate, start by looking at both your credit reports.

Your credit report is the unique, personal record of your credit history and includes information about loans, mortgages and credit cards that you have taken out, your repayment history, details of any court judgments against you and other information, such as whether you are registered to vote.

Lenders check your credit report when you apply to them and use the information it contains, along with details from your application form, when they decide whether or not to make you an offer and how much interest to charge.

One of the sections on the report covers your financial associates, which lists anybody with whom you share a joint credit card, mortgage or loan. You cannot see any other data but lenders will follow this up by checking their credit histories too. So if you set up an account with somebody who has a poor credit history, you can find yourself penalised for his or her financial problems.

The easy way to see your credit reports – for free – is to visit Credit Expert, the online credit monitoring and identity protection services from the UK 's largest credit reference agency, Experian. You can both sign up for a 30-day trial of the service and check your reports as often as you like.

Set the record straight

Because your credit reports are key to getting the financial deals you need to build your future together, your priority is to ensure that they are up to date and accurately reflect your circumstances.

For example, you might have missed a couple of repayments on a loan or card because you were ill, although this has never happened before or since. If you would like to add a note to explain the situation, CreditExpert can help – contact them via the website. Lenders will see your explanation when they check your report and may take a more favourable approach as a result.

You might even discover loans or applications for credit that you do not recognise, in which case you may be a victim of identity fraud – one of the UK's fastest-growing crimes, which costs the country £1.7 billion a year, according to the latest government figures.

Again, let CreditExpert know and the experienced Victims of Fraud team at Experian will help you to set the record straight.

Don't panic

If both of you have good credit reports, it's likely that you will find it relatively easy as a couple to borrow the money you need. Even so, you should schedule regular checks on your credit reports, to make sure that things continue to go well and that your identities are safe.

But if one of you has a court judgment, bankruptcy or broken credit agreement on file, these will stay on the record for six years, so it might be better not to bank up together straight away.

Instead of opening a joint account, make a plan to improve matters. For example, you could consolidate any debts into a cheaper loan, pay off one or more credit cards or find better deals. www.CreditExpert.co.uk is a great resource – it's full of useful advice and tips.

When you are building a life together, you need to be certain that your finances are sound – and little changes can make a big difference.

• If you'd like to check your credit report and find out more about CreditExpert, click here .