The nation is more open-minded than we might think about who to pair up with for joint credit applications, according to new research from reference agency Equifax UK.
The study of 2,000 adults in the UK found credit cards (71%) and personal loans (58%) are the most common forms of credit to apply for alone, while a mortgage (48%) is the most likely form of credit to be applied for with a partner.
However, of those who said they had already or planned to take out a mortgage, 17% have or will do so with someone other than their partner.
As many as one in 11 have applied – or plan to apply – for a mortgage with a friend (9%), falling to 7% with a parent, 6% with either their son, daughter, grandson or granddaughter (18+), and 5% with a sibling. Homeowner loans were also high among friends (18%) or with a parent (14%), while cousins ranked highly for joint car loans (12%).
The findings come with more than one third (34%) saying a joint application for credit is necessary to secure the size of loan they need, rising to 58% among younger ages (18-34s).
Excluding mortgages or car finance, the most common spending plans with joint credit include home renovations, travelling or holidays, and emergency expenses (all 34%). This was followed by large item purchases (32%), weddings and business expansion (both 24%). Almost a quarter (23%) said it was to build credit history.
Craig Tebbutt, Chief Strategy & Innovation Officer at Equifax UK, says: “The affordability landscape in the UK has shifted, average income to house price ratios have widened, and consumers are increasingly thinking outside the box about how they use credit to achieve their goals. Spouses have long been our ‘go-to’ credit partners particularly for larger loans like a mortgage, but this won’t be an option for everyone and responsible borrowing alongside wider family and even friends unlocks more options to boost financial inclusion.”
The findings come as Equifax UK launches its Family & Friends Plan subscription, allowing users to share the benefits of the existing Equifax Credit Report and Score service with up to two additional users.
Almost half (46%) of adults say their family or friends would benefit from being better informed about their creditworthiness, and 62% also think they would benefit from tools to help protect them against identity fraud.
