Credit Rating

woodzie

Hi I'm hoping someone can help me. I got myself into debt 3 years ago where I had loans with 3 credit unions. I fell behind by a month or so in each credit union on each loan. I was earning €16k per annum while training for my job and this caused me o get into debt as I was finding it difficult to live.
Anyway I paid up all my arrears or so I thought. One of my loans is in arrears by 4.5 months however I was never informed by the credit union about his. There's €4k left on that loan and its due to be repaid in full by July.. As I'm earning a lot more now, I'm going to pay off €1k over this month and have the loan cleared by June. Will this badly effect my credit rating or will the fact I paid it off within the loan period mitigate the effects of been in arrears for over three months?

chris85

woodzie wrote: »

Hi I'm hoping someone can help me. I got myself into debt 3 years ago where I had loans with 3 credit unions. I fell behind by a month or so in each credit union on each loan. I was earning €16k per annum while training for my job and this caused me o get into debt as I was finding it difficult to live.
Anyway I paid up all my arrears or so I thought. One of my loans is in arrears by 4.5 months however I was never informed by the credit union about his. There's €4k left on that loan and its due to be repaid in full by July.. As I'm earning a lot more now, I'm going to pay off €1k over this month and have the loan cleared by June. Will this badly effect my credit rating or will the fact I paid it off within the loan period mitigate the effects of been in arrears for over three months?

The arrears will remain on the ICB for 5 years following the clearance of the loan. When completed it will be marked as completed but the history of arrears will also be on it.

woodzie

Cheers for the reply, that's what I was thinking but I'm also wondering how badly will it affect my credit rating. I'm planning on applying for a mortgage in a year or so and I have been able to get all my finances in order and I have always repaid loans by their expiry date and as I thought never more than a month in arrears on any of it. Always pay my credit card on time too.

Liam D Ferguson

It's possible that your Credit Union may not be a member of the ICB, who compile credit ratings. Check their website www.icb.ie to see. You can also order a copy of your own credit report (the same one any banks will see) for a small fee.

chris85

woodzie wrote: »

Cheers for the reply, that's what I was thinking but I'm also wondering how badly will it affect my credit rating. I'm planning on applying for a mortgage in a year or so and I have been able to get all my finances in order and I have always repaid loans by their expiry date and as I thought never more than a month in arrears on any of it. Always pay my credit card on time too.

It basically affects your credit score. How the financial institution views this is up to them.

As also mentioned if your CU is not a member of the ICB then wont affect your credit rating.

woodzie

Thanks guys. I checked and it is a member of the icb. I know it not joined recently. Surely they would need my permission to send them my repayment history as I never consented to them giving my info to icb. I know that if your applying for a new loan they will ask for your permission before you are approved. However I was never asked as my cu wasn't a member when I applied for the loan.

Liam D Ferguson

woodzie wrote: »

Thanks guys. I checked and it is a member of the icb. I know it not joined recently. Surely they would need my permission to send them my repayment history as I never consented to them giving my info to icb. I know that if your applying for a new loan they will ask for your permission before you are approved. However I was never asked as my cu wasn't a member when I applied for the loan.

That's an interesting point. On most bank loans the consent is contained in the declaration you sign on the application form. But if you're 100% sure you never signed anything because your CU wasn't an ICB member at the point of application, then the CU shouldn't be sharing your information.

Only ways to find out for sure are to ask your CU if they sent your details to the ICB (and if so, under what authority) or order a copy of your ICB report directly.

killers1

Liam D Ferguson wrote: »

woodzie wrote: »

Thanks guys. I checked and it is a member of the icb. I know it not joined recently. Surely they would need my permission to send them my repayment history as I never consented to them giving my info to icb. I know that if your applying for a new loan they will ask for your permission before you are approved. However I was never asked as my cu wasn't a member when I applied for the loan.

That's an interesting point. On most bank loans the consent is contained in the declaration you sign on the application form. But if you're 100% sure you never signed anything because your CU wasn't an ICB member at the point of application, then the CU shouldn't be sharing your information.

Only ways to find out for sure are to ask your CU if they sent your details to the ICB (and if so, under what authority) or order a copy of your ICB report directly.

Could be a case that your CU joined the ICB after your loan had issued and have since changed their application forms accordingly. They might only be posting history on loans taken out since then. As suggested order a copy of your icb (www.icb.ie) and you'll know fairly quickly where you stand...