Mortgage / credit rating

mollytev32

Hoping to apply for a mortgage in the next 6 months.got my credit report in the post and it looks good. However I recently got a letter in the post from a debt collecting agency IJ ie littlewoods saying I owe 356 euro. A debt I completely forgot about. Just wondering if this is going to affect my credit rating/score. I paid 150 euro off the debt yesterday and planning paying the rest but am I too late??

Has this happened anyone else?? I'm worried sick. Don't want to think I've ruined my chances of getting a mortgage..

Eric Cartman

first of all little woods aren't in the ICB , so unless they brought you to court over the debt it won't appear on the ICB .

secondly , if you are in debt to littlewoods , you really should reconsider a mortgage , you need to have shown a consistent savings record and the ability to manage your finances and live within your means, getting into debt for household goods or clothes suggests that this is not the case.

mollytev32

Thank you for your reply. I have been saving on a regular basis for a number of years now and have also taken out several loans which have been both paid back early. The littlewoods account was a complete oversight as I moved house and bills had been going to old house therefore out of sight out of mind. Silly I know but these things happen. I will have it cleared by the end of the month but was just worried that it may have been reported to the icb..
Thank you again for the quick reply.

Rackstar

Eric Cartman wrote: »

first of all little woods aren't in the ICB , so unless they brought you to court over the debt it won't appear on the ICB .

secondly , if you are in debt to littlewoods , you really should reconsider a mortgage , you need to have shown a consistent savings record and the ability to manage your finances and live within your means, getting into debt for household goods or clothes suggests that this is not the case.

OP seems to have everything under control apart from 350 quid to littlewoods, hardly worth reconsidering the mortgage over.

Friend of mine was constantly running up bills with Littlewoods and Oxendales, straight out told the bank this and they didn't bat an eye. They said it's not a worry as she had a good savings record, regular salary etc. Gave her the mortgage without any issue. Bank was Ulster Bank.

mollytev32

Thank you..you have put my mind at ease.

fondue

Eric Cartman wrote: »

first of all little woods aren't in the ICB , so unless they brought you to court over the debt it won't appear on the ICB .

secondly , if you are in debt to littlewoods , you really should reconsider a mortgage , you need to have shown a consistent savings record and the ability to manage your finances and live within your means, getting into debt for household goods or clothes suggests that this is not the case.

Even if Littlewoods brought you to court it still wouldn't appear on your ICB report. You have nothing to worry about.

mollytev32

Thank you..I'll get it cleared anyhow..better safe than sorry..

Pac2015

Eric Cartman wrote: »

first of all little woods aren't in the ICB , so unless they brought you to court over the debt it won't appear on the ICB .

secondly , if you are in debt to littlewoods , you really should reconsider a mortgage , you need to have shown a consistent savings record and the ability to manage your finances and live within your means, getting into debt for household goods or clothes suggests that this is not the case.

€ 356 is not such a huge amount to be reconsidering taking out a mortgage as the person said she forgot about the debt.
Littlewoods are not customers of ICB so I would suggest clearing down that debt and closing the account because as from 2016 the ICB will be no longer and there is a new EU crowd taking over the credit rating it will now be credit scoring in a points system and that shows up everything.

sKeith

Pac2015 wrote: »

there is a new EU crowd taking over the credit rating it will now be credit scoring in a points system and that shows up everything.

Do you have a link to where I can read more about this.

Pac2015

sKeith wrote: »

Do you have a link to where I can read more about this.

I don't there was a financial expert on the Matt Cooper show some weeks back talking about it he said it will be late 2016 before this happens the ICB will still be up and running and you can still request your report from them but this crown will work based on your bank statements, your expenditure how often you use your credit card for basic things etc...
They will look at your spending habits rather then if you are a good payer, I personally think its an invasion of privacy and the expert did too but its coming in and they will work off a points system now.

L1011

Pac2015 wrote: »

I don't there was a financial expert on the Matt Cooper show some weeks back talking about it he said it will be late 2016 before this happens the ICB will still be up and running and you can still request your report from them but this crown will work based on your bank statements, your expenditure how often you use your credit card for basic things etc...
They will look at your spending habits rather then if you are a good payer, I personally think its an invasion of privacy and the expert did too but its coming in and they will work off a points system now.

There is only a vague proposal (from 2008!) for an EU wide system.

What is happening is that the Central Bank is to have a statutory Central Credit Register which will be able to have more details than the ICB. The ICB is unlikely to exist after this is introduced; and it'll probably also get the two private firms out of the market in time.

Pac2015

L1011 wrote: »

There is only a vague proposal (from 2008!) for an EU wide system.

What is happening is that the Central Bank is to have a statutory Central Credit Register which will be able to have more details than the ICB. The ICB is unlikely to exist after this is introduced; and it'll probably also get the two private firms out of the market in time.

The guy on the Matt Cooper show said it was definately coming in and that the ICB would be still going on their own for about a year then will work in conjunction with this new crowd, it was very vague as to what was happening but it seems like every little thing will be looked at he said things like families who more or less live on the credit card will be looked upon harshly its a tough system I dont know if its needed here as its hard enough to get banks to give you anything these days however I do know Ulster bank have been using an internal credit scoring points system for years very like this and they are really strict too.