Credit Rating and Mortgage

sephiroth30

Looking for some advice - I have a credit card which I have been struggling to pay. Self employed and work has been crap, trying to pay another loan I have and rent and everything else and the credit card payments were missed a number of times. So I have spoke to them and they have said my file has been passed to the ICB and will have 5 years on my rating. My credit card is frozen so no interest is being charged and they are sending me out a letter to see how much I can afford to pay off it monthly so there is something coming off it.

How badly is this going to affect my credit rating?

Is there anything I can do to fix it any sooner than the 5 years or am I basically left with no chance of getting a mortgage or any other loan now for 5 years as a result?

Is it possible if it was paid off sooner that while it would remain on there that I could still apply and get a loan?

I have another loan I am paying back which the payments have been met on, will this stand to me at all or does it matter?

Does this rating affect business loans also? I am in the early stages of setting up something with someone else as the other line of business has been so bad. Will it affect the businesses chance of getting a loan if I have a bad rating or is the business seen as a customer in itself?

Thanks for any help.

sephiroth30

Anyone??

cookie1977

sephiroth30 wrote: »

Anyone??

Your credit rating affects all loans you apply for to companies that access the ICB registry. I dont know if it's easy to repair it before 5 years as a missed payment is a missed payment even if you catch up on them. Basically your rating will remain affected for the 5 years as far as I can see. How much it affects you (whether you can get a mortgage or business loan) depends on the size of the missed payments and the institution you want the loan off of (amongst other things). It may mean higher interest rates will be sought from you or more security for a loan or they may outright refuse. It's hard to say for certain

sephiroth30

Does anyone know if the 5 yrs clock starts ticking from when the bank sends the info to the ICB or only when the card has been paid off in full?

cookie1977

sephiroth30 wrote: »

Does anyone know if the 5 yrs clock starts ticking from when the bank sends the info to the ICB or only when the card has been paid off in full?

Every month you haven't paid the debt or are behind the bank sends info to icb. So until you catch up or pay off (i.e.when the bank stop telling the icb you're late or haven't paid) the clock wont start.

sephiroth30

They sent me out a payment plan letter to fill in saying how much I could pay back a month. They said the interest on the card has been stopped so its pretty much like paying back a loan now. So does that mean the 5 years wont start till I have that paid off in full or it starts now as long as I start making these payments back, unless I miss one in which case they tell the ICB I missed one of those and start it again?

cookie1977

I'm not going to swear to it but I'd imagine if you've done a deal with them that they've agreed to, as long as you don't miss a payment, the clock should start from when you last missed a payment.

Call the bank or icb to confirm.

sephiroth30

Ok thanks for the replies - waiting on them to get back to me on my proposal at the minute so will see what they say on that first.

acadia

Hello
Just to advise, if they do offer to freeze interest and charges , check to see if it will remain until the cc amount is fully paid ,
I had the same offer on my cc only to find now the interest and charges are now being added again, BOI claim that they only freeze for 12 months and if your able to make the agreed payments then they start putting on the interest and charges as the freeze was only to assist in getting the balance down, so re check what they are offering and get it in writing as well no verbal agreement never trust them unless its in writing