Credit Score HELP

LegacyUser

Hi I don't know if this the right place but I need advice.
I've been foolish with credit cards but didn't rack up huge debt-I ow about €2500. Now I want to transfer to a 0% balance but because I missed a minimum payment (due to me not getting my act together) I'm not eligible and I'm stuck in a debt which will cost me more money to to pay off. I am really getting worried about this, will my credit score affect me forever? Should I tell my boyfriend about this as we're planning on buying a house (I own my own home which I am selling) as it might affect our application? I am having sleepness nights and just wish I had never created such a hole for myself, but I want to get it sorted. What should I do?

jenga-jen

Hi OP

You can obtain a copy of your credit rating from the Irish Credit Bureau through their website: http://www.icb.ie

It takes less than 10 working days and they post out your current rating, this should let you see where you currently stand.

I'd assume that if you were to then decrease your current debt this rating would improve. Either way it'll give you a clearer picture of where you stand since this is the same organisation that the banks use!

If you're thinking of buying a house with your OH you might want to consider coming clean about your debt. Wouldn't you want to know if the situation was reversed?

LegacyUser

Hey Op,

A black mark on your credit report stays there for 5 years. However depending on the situation amount, whether you cleared the double amount the following month, i'd imagine that you shouldn't have problems getting approved if you have never missed mortgage payments. As for transferring your credit card the banks are unlikely to take over another banks credit card debt, in the current climate and also as you missed the very least amount accepted for payment. Do you only ever meet the minimum payments? If I were you if i'd savings i'd clear my credit card or I would apply for a personal loan and clear it then cut the card up as you obviously are not in control of your spending on it. Another website may be of use to you, it's called Askaboutmoney.com

LegacyUser

Thanks jenga jen
I know I probably should tell him, but he is SO sensible with money (credit card bill paid in full every month, never took out a loan, pays cash for most things) that I'm afraid he won't understand how I let this happen!
I looked at that site, thanks a mill!
Based on what you said (you seem to know this stuff, not like me!) can you improve your credit score by paying off a debt? I have had a card withdrawn which is what is holding me back, but can I get over this by paying it off in full and paying down the other debt? I'm in a permenant, pensionable civil service job and I own my home (very low tracker mortgage tahnk god) but I can't believe how tight the banks have gotten-its been a MAJOR wake up call and I'll never be so silly again.

jenga-jen

silly woman wrote: »

Thanks jenga jen
I know I probably should tell him, but he is SO sensible with money (credit card bill paid in full every month, never took out a loan, pays cash for most things) that I'm afraid he won't understand how I let this happen!

Ok on the personal side of things, you have to realise that no matter how sensible he is, he hasn't got a mortgage by the sounds of things. If you sit him down and explain that this just got a little bit out of hand but you're doing X,Y, Z to sort it then surely he should understand??

A lot of banks are giving free financial reviews at the minute. Why don't you contact your branch and see if someone can sit down with you? They'll be able to advise you, given your current income, outgoings, mortgage and the level of debt you want to clear.

As givemeabreak said, loans are one option to clear a credit card debt as they have often significantly lower interest rates, however you'll need someone who knows your situation to advise you properly.

Go get some help for yourself, something that seems so daunting may in fact be easier to resolve than you think once you get professional advice!

LegacyUser

Thanks again, jenga jen, and other replier!

I know what I need to do, I've worked out a really strict budget for myself (bringing own lunch to work, no shopping and minimum socialising, Lidl for groceries, reduced other bills by switching to lower rates etc) so I have a plan to pay these cards off by June, but what I'm really worried about is the credit score and if this will haunt me for a long time. Even if I'm credit card free in six months, will banks hold it against me for five years? I've called the bank and they just say becuase of this one thing on my credit check, they won't transfer my balance or help me at all. I now have MAJOR sympathy for people worse off than me (at least its only €2500 and not €25,000) because they aer so black and white about this.

I've decided to come clean with my BF as we're looking at houses this weekend, but will a credit card black mark count for a joint mortgage application? Thanks a mill!!!

Sleepy

If you've never missed a mortgage payment, one missed credit card payment isn't going to affect an application for a mortgage with your boyfriend at all.

I'd be more worried about the possible negative equity situation on your current home preventing you from clearing that mortgage by selling the property.

LegacyUser

Hi sleepy,
I'm not too worried about negative equity as I bought my house five years ago and they are still selling in my area for more than I paid. I also have very low repayments so if we are stuck renting it, rental income would more than cover the mortgage.

It's not the missed payment that's the problem on my credit score, its that the bank withdrew a card becasue of its new strict policy on missed payments, so I can't use it and have to pay it off. Its just been a shock hearing I'm in trouble like this, as I only knew I had a bad score when my application was refused, I honestly was very naive and thought I'd have no problem switching to a 0% card. I have learned my lesson and I've a plan in place to get myself out of this mess but even if I do, will this one mistake affect me for five years?

jenga-jen

OP the bank might not transfer your balance on you credit card since, as another poster advised, most banks may not want to take on extra debt.

Your best bet really is to go and get a financial review done (I've had my own bank offer me one lately and I've seen posters in other banks for the same only this week).

Bear in mind, €2500 isn't a huge amount of debt considering you already have a mortgage! However, the only people who can tell you whether this is going to affect your mortgage application is the bank.

Don't be afraid to reveal this debt to them, they'll already know/will find out anyway if they're doing the right checks! You won't be the first person in this situation. I had a great chat with a girl in my bank with regards to my credit score and she was very helpful.

Unfortunately, I know it sounds like I'm pushing you on this but really they'll be the only people who can give you an accurate answer.

faceman

Hi OP. If you missed the minimum payment then it will affect your application unless you have cleared the debt, if your application is with the same bank. Generally speaking, it takes 2 missed payments to affect your rating but again, it depends on the bank.

Any credit card debts in excess of €2k are considered to be a loan and can impact your borrowing potential a great deal. You should try have this debt under control or preferrably paid before applying.

You could look at getting a credit union loan to clear the credit card debt. The interest rate will be far less. Credit card interest rates are ridiculously high.

This isnt me offering professional advice btw, so seek professional advice before making a decision