Credit Rating Help

turlach

Hi Folks,

Just a few questions regarding credit rating. Me and my girlfriend were in Harvey Norman today, we went to buy a couch, but she got refused credit.

She has had loans credit cards and loans before and has failed to pay them back on time, so I'd say thats why she didn't get it. I have never had a credit card or a loan before- but I applied for one about 4 years ago and was refused. Beacuse of direct debits bouncing. We are both students and have been sharing a house with 4 others over the last year. So over the last year I have had esb bills, eircom bills and my own mobile phone bill bouncing say on the wednesday, but then being paid off on the friday. This has happened a few times over the last year. I also owe the fekkers in JJB 70e

So....

What effects my credit rating?
Will being refused a credit card effect give me a bad credit rating?
How long do thhe ICB keep bad credit on record?
Do utilitiy bill effect my credit rating?

From reading online the Irish Credit Bureau only look at loand from finiancial institutions and not from other companies, BUT beacuse these bills go through my AIB account would all these factors effect my credit rating? I just ordered a credit report from the ICB tonight and I am nervously waiting for a letter from them.

ALSO...

If we were to get a joint account would our two credit ratings be combined?
I will probably have many more questions once I get the report....

Thats all for now...
Thanks folks

chris85

turlach wrote: »

Hi Folks,

Just a few questions regarding credit rating. Me and my girlfriend were in Harvey Norman today, we went to buy a couch, but she got refused credit.

She has had loans credit cards and loans before and has failed to pay them back on time, so I'd say thats why she didn't get it. I have never had a credit card or a loan before- but I applied for one about 4 years ago and was refused. Beacuse of direct debits bouncing. We are both students and have been sharing a house with 4 others over the last year. So over the last year I have had esb bills, eircom bills and my own mobile phone bill bouncing say on the wednesday, but then being paid off on the friday. This has happened a few times over the last year. I also owe the fekkers in JJB 70e

So....

What effects my credit rating?
Will being refused a credit card effect give me a bad credit rating?
How long do thhe ICB keep bad credit on record?
Do utilitiy bill effect my credit rating?

From reading online the Irish Credit Bureau only look at loand from finiancial institutions and not from other companies, BUT beacuse these bills go through my AIB account would all these factors effect my credit rating? I just ordered a credit report from the ICB tonight and I am nervously waiting for a letter from them.

ALSO...

If we were to get a joint account would our two credit ratings be combined?
I will probably have many more questions once I get the report....

Thats all for now...
Thanks folks

Your girlfriend having missed payments before will be marked against her. Also yourself having never had a loan or credit card also puts you in the risky section as you have no proven track record yet. you would be considered less risky than your other half but more risky than someone who a good record of payments on their credit facilities.

your credit rating is compiled only from the financial institutions which are members of ICB. utilities are not part of this and such do not count. missing a DD wont count either as your current account wont affect credit rating on ICB.

ICB keep note of defaults for five years. It would also be noted for all to see that you previously applied for credit and got refused.

Credit facilities affect your credit rating, these are loans (secured and unsecured) and credit cards basically.

Your girlfriend having missed payments before will be marked against her. Also yourself having never had a loan or credit card also puts you in the risky section as you have no proven track record yet.

turlach

chris85 wrote: »

Your girlfriend having missed payments before will be marked against her. Also yourself having never had a loan or credit card also puts you in the risky section as you have no proven track record yet. you would be considered less risky than your other half but more risky than someone who a good record of payments on their credit facilities.

your credit rating is compiled only from the financial institutions which are members of ICB. utilities are not part of this and such do not count. missing a DD wont count either as your current account wont affect credit rating on ICB.

ICB keep note of defaults for five years. It would also be noted for all to see that you previously applied for credit and got refused.

Credit facilities affect your credit rating, these are loans (secured and unsecured) and credit cards basically.

Your girlfriend having missed payments before will be marked against her. Also yourself having never had a loan or credit card also puts you in the risky section as you have no proven track record yet.

Hi Chris,
Thank you very much for the reply. Have to say i've been a member of boards for ages but have only started using it recently. It is a fantastic community with very helpful members.

From what you said above, would the fact that I have two student overdrafts in two banks not effect my credit rating? I have not broken any of the terms of them as far as I know.

From what you said would the best thing for me to do is get a small student loan and/or a student credit card? Would it matter if I didn't use the credit card or would it be better if I used it? If i was to get a student loan out then deposit it into a different account then lodge it back in after a couple of weeks would this give me a good credit rating? Does applying for loans and getting refused effect my credit rating? would it be best to ask for a student loan for 200e and then pay it back, then get a bigger one again building it up?
It is just very important for me to have this for my future and I am only starting to get to grips with my personal finances recently.

Thanks in advance,
Turlach
x

chris85

turlach wrote: »

Hi Chris,
Thank you very much for the reply. Have to say i've been a member of boards for ages but have only started using it recently. It is a fantastic community with very helpful members.

From what you said above, would the fact that I have two student overdrafts in two banks not effect my credit rating? I have not broken any of the terms of them as far as I know.

From what you said would the best thing for me to do is get a small student loan and/or a student credit card? Would it matter if I didn't use the credit card or would it be better if I used it? If i was to get a student loan out then deposit it into a different account then lodge it back in after a couple of weeks would this give me a good credit rating? Does applying for loans and getting refused effect my credit rating? would it be best to ask for a student loan for 200e and then pay it back, then get a bigger one again building it up?
It is just very important for me to have this for my future and I am only starting to get to grips with my personal finances recently.

Thanks in advance,
Turlach
x

getting any form of credit and paying it back will help indeed. Even a few hundred euro and paying it back would be better. Also having a credit card and not using it wont help as you havent used any credit so they cant list that you have been paying it back.

ANy loan will show up and will be marked on ICB as cleared when paid in full.

Any loans or credit applications refused will be noted on ICB also afaik.

A student loan would help improve your rating certainly if paid back on time. you must also remember that your ability to repay is there as well and is as big if not a bigger factor in the equation.

gogo

Turlach, while the bounced direct debits wont affect your ICb report, the bank you are dealing with will have taken note of them, so for example your with the Aib, and you are missing direct debit payments, when you then go and apply for a credit card with them, you'll probably be declined without them even checking on the ICB, they will have no need because your account will tell them everything they need to know.
So I personally would work on that first before you apply for any credit, get your bank account in order, work out due dates for direct debit payments and ensure you have funds in the account ot meet them, if you dont cancel the dd's and pay manually as this wont impact in you bank account.
The idea is to start small, work on your account first. Its crazy to apply for credit that you dont need to build up a credit rating. If you do, you cant just borrow 200euro, deposit it somewhere and then pay back the loan, you'll be charged interest for one, and the temptation to spend it will always be there.

Do it properly and start at the basics. Good account and good relationship with bank, and they'll more than likely consider you for credit when you actually need it. Good luck with it.

turlach

gogo wrote: »

Turlach, while the bounced direct debits wont affect your ICb report, the bank you are dealing with will have taken note of them, so for example your with the Aib, and you are missing direct debit payments, when you then go and apply for a credit card with them, you'll probably be declined without them even checking on the ICB, they will have no need because your account will tell them everything they need to know.
So I personally would work on that first before you apply for any credit, get your bank account in order, work out due dates for direct debit payments and ensure you have funds in the account ot meet them, if you dont cancel the dd's and pay manually as this wont impact in you bank account.
The idea is to start small, work on your account first. Its crazy to apply for credit that you dont need to build up a credit rating. If you do, you cant just borrow 200euro, deposit it somewhere and then pay back the loan, you'll be charged interest for one, and the temptation to spend it will always be there.

Do it properly and start at the basics. Good account and good relationship with bank, and they'll more than likely consider you for credit when you actually need it. Good luck with it.

Cheers Gogo,

Have been concentrating on the for the last while, it will be much easier now that it will be just me and my gf living together and I wont have to be hounding 5 other people to give me money while being broke myself. Started a budget spreadsheet today, keeping all my receipts, saving 10% of my wages each week. Was thinkin of doin my utilites manually, but I have no capital for the deposits needed to do them. Going to start off with the basics- tis hard as a student with part time job, moving into a new house, but there are plenty of nixers to be done.

Fair play for all the advice Chris and Gogo- much appriciated. I have a much better understanding of credit ratings now after much googling and help from here.

gogo

We all had to start somewhere, getting refused that couch might be the best thing that ever happened to you. Good Luck!!

turlach

gogo wrote: »

We all had to start somewhere, getting refused that couch might be the best thing that ever happened to you. Good Luck!!

Thanks Gogo- I really think so too, a bit of education and forward palnning cannot help.
:D:D