BAD CREDIT RATING HELP ME!!!!!!!!!!!!!!!

gerbear69

Hi

I took very sick in 2013 , I couldn't work. My job didn't pay me. I went into arrears with my credit card. 8 months of arrears unfortunately At the time the bank with whom I had the credit card (permanent tsb) said it would stay on my credit rating for 2 years! I have since gone back to work and worked my ass off with my partner and managed to save a pretty good deposit (40K) in just over a year. We now want to apply for a mortgage, I am obviously apprehensive of being declined over my credit rating. It is stated on my ICB report that I was in arrears for 8 months. Is it only for another year? Or was PTSB lying to me? Could I have made my credit history slightly better by saving? I have taken out 2 small loans in the Credit Union in recent months and paid them back well before the time given, would these loans help me? The Credit Union is registered with the ICB. DO I have a hope of getting a mortgage???

jodaw

The information that is on your ICB will remain on your record for 5 years after the loan account has been closed/cleared.

If the credit union is registered with the ICB then you loan accounts with them would also show with the ICB. If the payment profile on these loans is good then that would stand to you. The bank may question why you required personal loans when your savings are so high?

I hate to be the bearer of bad news but the bank are still really strict in their requirements and I would say you would be ruled out almost automatically with any bad credit history.

If everything else is perfect and you could put are really plausible excuse for the bad credit then maybe there might be a chance.

Other than that how is everything else?

- What is you current rent and is it paid from your account?
- Has the 40k been saved in regular amounts into your savings or lumps?
- What sort of LTV will the mortgage be?

gerbear69

Thank you for replying.

I was afraid you would say that. Rent is only 600 a month we are staying with my parents, it comes out via a standing order so does our savings, we are saving 3000 a month constantly, no breaks have ever been taken in our savings. I only took the loans to try help my credit rating. Is there anything else I can do to help my situation?? LTV will be 13%. Desperate to buy right now we have a dependant

chooey

Not sure if you can still do this but you used to be able to add some notes to your icb profile so maybe you could just explain on it that you were unemployed. Not sure if they pay much heed to it but it's worth a try

dellas1979

As an alternative, I assume "partner" means you are not married yet (i.e., you wont be taken into consideration on a mortgage application by your partner if they apply on their own-you are both assessed if you were married).

I also assume judging by how well youve both saved recently that your partner has a good enough wage to approach the banks on their own for a mortgage.

It does throw up a few legal issues (i.e., if you were to split 5 years down the road, the house would be in your partners name).

Littlepea

Hi sorry to jump on your thread but I am in a similar (sort of) situation.
Myself and my husband applied for a mortgage last year and were turned down.
I own a property with a friend which is in negative equity and this was a big factor.
We spent the year saving as much as we possibly could to show we could cover both mortgages if necessary. We also have close to €30k in savings.
We have been told that our mortgage application has been turned down as my husband had two missed payments on a loan which was taken out in 2007 and was paid off in full four and a half years ago years ago.
The advisor from our local branch has appealed our case as he feels this is very harsh.
Hee has asked what the loan was for. My husband went travelling in 2007 and borrowed the money for this.
Should I tell the truth and say it was a loan to go travelling for a year or would it be better to say it was for a car loan? Could they check this?
Also, what are our chances of being approved on an appeal?
Any advice welcome.

jodaw

As far as i know, if the loan is with another bank then the bank will just receive the amount and payment profile of the loan account, so they would not be able to know the purpose of the loan itself.

If the loan was taken out with the bank in question then they would have the information to know it was a personal or a car loan.

In reality honesty is the best policy and in this case i dont think saying it was for a car over travel would make a difference.

In my experience the credit record is a deal breaker and they will not over look it.

On the bright side there is only six months until the record is cleared from the system. So maybe just save for another six months and you will be good to go.

Only other option would be to contact the lender of the loan account directly and ask them nicely would they remove the record. I have known this to work on the rare occasion, but with only six months remaining i would just wait.

Seamu$

gerbear69 wrote: »

Thank you for replying.

I was afraid you would say that. Rent is only 600 a month we are staying with my parents, it comes out via a standing order so does our savings, we are saving 3000 a month constantly, no breaks have ever been taken in our savings. I only took the loans to try help my credit rating. Is there anything else I can do to help my situation?? LTV will be 13%. Desperate to buy right now we have a dependant

LTV figure can't be right - hardly any need for a mortgage at that rate! Do you mean 87% perhaps?

SBarrett

Lenders will only look at cases with a clear ICB record. The record stays there for 5 years after the loan is cleared.

At the moment, a lot of people are unable to get mortgages because of a few hundred euro of bad debt that was cleared years ago. It's not fair at all but it's the banks money and they make the rules.


Steven

CSOSulla

Yes, given the history, it is bloody harsh!

It's not fair at all but it's the banks money and they make the rules.

Actually, no its not their money. After the fiasco over "their" lending policies, causing a massive economic downturn, if memory serves, they were bailed out by government money, borrowed from the EU, being paid back by punitive taxes by us. So ultimately they are using "our" money which was used to bail them out, then refusing to lend to decent people, by some arcane [ICB] formula that has about as much bearing on realistic ability to pay as a dartboard!

Only Ulster bank did not have this, but as it was part of RBS and made a huge loss, it was bailed out by the UK government. Its strange how they are so reluctant to lend to decent, normal hard-working people, but still pay themselves huge [and it is huge] bonuses.

By August 2011 total funding for the six banks by the ECB and the Irish Central Bank came to about €150 billion; the largest of the six, Bank of Ireland, then had a market capitalisation of just €2.86 billion

Anglo Irish was nationalised on January 20, 2009, when the Irish government determined that recapitalisation would not be enough to save the bank. Since then it has emerged that Anglo Irish falsified its accounts before it was nationalised, with circular transactions between it and another bank, Permanent TSB, being uncovered. Denis Casey, the chief executive of Irish Life and Permanent, the company that owns Permanent TSB, resigned in the aftermath of this revelation.

Bank of Ireland chief executive Brian Goggin announced his retirement in January 2009, confessing to RTÉ that his bank has made bad lending decisions. Asked about his expected salary for 2009, Goggin admitted that it would be “less than €2 million”. Goggin had earned approximately €3 million in the year to 31 March 2008. He was replaced as CEO by Richie Boucher whose appointment was announced on 25 February

They also made the rules that caused the meltdown, how many were/are penalised for it? The ONLY time they have been penalised at all is for illegality, then only on an international level. Not for screwing up many peoples lives, including many bank employees. So saying its "their" money is a slight misnomer TBH. We will be paying "for them" for a "long" time to come.

They are parasites, who make their own rules and need regulating badly! They are as corrupt now as they were then.

S

Littlepea

jodaw wrote: »

As far as i know, if the loan is with another bank then the bank will just receive the amount and payment profile of the loan account, so they would not be able to know the purpose of the loan itself.

If the loan was taken out with the bank in question then they would have the information to know it was a personal or a car loan.

In reality honesty is the best policy and in this case i dont think saying it was for a car over travel would make a difference.

In my experience the credit record is a deal breaker and they will not over look it.

On the bright side there is only six months until the record is cleared from the system. So maybe just save for another six months and you will be good to go.

Only other option would be to contact the lender of the loan account directly and ask them nicely would they remove the record. I have known this to work on the rare occasion, but with only six months remaining i would just wait.

Thanks for the reply. Looks like we'll just have to wait it out then. The biggest problem we have is continuing the saving as we are also paying rent and childcare as well as saving enough to show we could pay two mortgages
Just one other query, we have applied twice now for a mortgage. If we apply again next year to a different bank or the same one will the banks be able to see the previous ICB logs from our previous two applications and will this count against us?

Jim2007

Littlepea wrote: »

The biggest problem we have is continuing the saving as we are also paying rent and childcare as well as saving enough to show we could pay two mortgages

So in reality then you would not be able to handle the two mortgages.... perhaps you should rethink this strategy, because it is not sounding so good! What happens if it all goes wrong, how will you deal with further financial demands in the next few years as your kids grow up and need assistance with training, education and so on.

SBarrett

Jim2007 wrote: »

So in reality then you would not be able to handle the two mortgages.... perhaps you should rethink this strategy, because it is not sounding so good! What happens if it all goes wrong, how will you deal with further financial demands in the next few years as your kids grow up and need assistance with training, education and so on.

Jeysus Jim, a bit of empathy wouldn't go far astray!!

Littlepea, it doesn't matter what you say the loan was for. The ICB record is key.

Seeing as it was the banks who threw money at people and then got bailed out themselves when they were in trouble, it is unfair that they refuse people point blank for people having a mark on their ICB record and prevent them from getting a mortgage for 5 years!

gerbear69

Thank you all for your help!

Sorry I meant to write a deposit of 13% LTV of 87%.

Just like to say there is light at the end of the tunnel, we as a couple got our full approval today:) We are over the moon. I wrote a letter explaining how I got into arrears and the under writer was satisfied with my explanation. Honesty is the best policy, I sent in medical reports etc. and bank statements of the time to prove I wasnt being paid, and that it was a once off illness.

SBarrett

gerbear69 wrote: »

Thank you all for your help!

Sorry I meant to write a deposit of 13% LTV of 87%.

Just like to say there is light at the end of the tunnel, we as a couple got our full approval today:) We are over the moon. I wrote a letter explaining how I got into arrears and the under writer was satisfied with my explanation. Honesty is the best policy, I sent in medical reports etc. and bank statements of the time to prove I wasnt being paid, and that it was a once off illness.

Well done, that's great to hear.

It's also great to hear that underwriters are showing some understanding to the reasons that people get into arrears.

Good luck with the house hunting.

Steven

Heno07

Delighted you got it. What bank did you get loan from? My partner is in same position. Old loan had a few missed payments.
Thanks

deckycoop

congrats on bein approved...

sorry i just want to ask a few silly questions about my own situation,

i have 12k euro outstanding with a bank since 2011. i have being in contact with them today. they said that in 2017 the system will be updated and the money will be wrote off. as loan partly paid and 12k outstanding.

i want to know what this means for the ICB. will this always be on my record. will it be a huge black mark over me for the rest of my life. in 2017, 6years after entry on my ICB will it be removed. or will lenders take any notice.. if i settle up the debt and make a payment for say 75% what will the outcome be or should i pay the full amount off.

i really need to know what my options are here..

jodaw

deckycoop wrote: »

congrats on bein approved...

sorry i just want to ask a few silly questions about my own situation,

i have 12k euro outstanding with a bank since 2011. i have being in contact with them today. they said that in 2017 the system will be updated and the money will be wrote off. as loan partly paid and 12k outstanding.

i want to know what this means for the ICB. will this always be on my record. will it be a huge black mark over me for the rest of my life. in 2017, 6years after entry on my ICB will it be removed. or will lenders take any notice.. if i settle up the debt and make a payment for say 75% what will the outcome be or should i pay the full amount off.

i really need to know what my options are here..

Make no mistake about it, it will be a huge black mark on your credit rating. Forget about even approaching a bank for finance.

If the debt will be wrote off in 2017 then it will be 2022 before the record is removed from the ICB.

Out of interest, if you can pay of 75% of the debt why are you in line for debt write off? This looks like a simple case of strategic default:rolleyes:

As far as options open to you, I would advise that maybe you contact the financial instution and make an offer to pay the 75% of the debt if they agree to clear the debt fully and remove all history from the ICB.

I believe they would go for this deal and it would be best for you if you have any future plans for a mortgage etc...

Edit: If they update in 2017 as partially paid with 12K outstanding then i assume that the 12K will continue to remain on your record unless you clear it or they write it off fully

deckycoop

the bank said when they settle they look to settle for 75 %.. there words.. not mine. i mite be able to make up 6-7 k to try to write it off once and for all..

so i need to pay up and wait out for it to come of my record with time..

oh the joys of being a stupid boy

jodaw

try to strike a deal with them. Tell them you will repay the debt if they agree to clear all record of the debt.

depending on the bank they may agree and there is no harm in asking.

at the end of the day their number one priority is to recover as much as possible of the debt