Bad Credit History/Mortgage - Questions (*please help, need advice*)

ncoen

Hi there,

I was wondering if anyone is or was in the same boat as me, and was looking to see what they plan to do or have done.

Basically, I missed a few payments on my student credit card a few years ago and when AIB called me, they told me they would cancel my card (and most likely told me it would affect my credit rating) I said "Yes, please go ahead. Thanks." Obviously a foolish thing to do, but I was young and never even thought about buying a home etc in the future. If I could travel back in time (still hoping for Hawking to invent a machine for time travel) I would return to that phone call and slap myself silly. They monthly payments were like €50 a month.

In total, there was €800 on the credit card that I had to pay through Intrum Justitia and payed off within 6 months.

But clearly, the damage is done. My credit history shows that I have to wait until April 2018 before the 5 years are finished. My own fault. *holds hands up* I was an idiot, and I will gladly pay the price for these 5 years and NEVER make this mistake again....

but my question is, after the 5 years, will this bad credit history (for €800 student cc) still be visible to all banks? If so, would they care? Would they be lenient on me due to amount? Or would I find it hard to get a mortgage? Do they not see it at all as my time is done and I would be fine to apply for a mortgage?

I work full time, have no loans (obviously), no overdraft (obviously), and have savings and accounts in good nic.

I feel terrible that my idiocy might affect my wife from owning her own home. We could easily afford a mortgage between us.

Anyone been through anything like this? Help!!

Cheers!
Ned

Trish56

The record should be gone after 5 years with the Irish Credit Bureau however details will always be on record with AIB so it would be best if applying for a mortgage in the future not to apply to AIB/Haven/EBS.

ncoen

Thanks Trish56 - yeah I was thinking that my current bank would obviously have a record. I may have to apply with another bank although i really would hope AIB wouldnt hold €800 (student cc) against me.

Has anyone else with previous bad credit (on ICB for 5 yrs) been successful with a mortgage application?

Trish56

I am aware of an AIB customer who was declined a mortgage by them re a €280 o/s balance on a car loan which was eventually paid but they would not consider him for a mortgage.
The same person was looking for a 40% loan to value mortgage with his new wife and they had joint savings of 70k. Made no difference so my advice would be to save until you have 10% deposit and then check your ICB and apply elsewhere.

ncoen

Thanks Trish - I will certainly bear that in mind! Although I have to say, it seems completely unfair and tbh, nonsensical - how many ppl in this country have bad debt (car, homes etc). I would understand a bank being cautious with someone who neglected their mortgage payments, but not a student credit card.

I probably wasnt going to go with AIB anyway - their terms and rates arent great, but would have been nice to know that I wasnt affected by €800. ;-(

Anyone else with any feedback or experience applying for mortgages after being on ICB for 5 years??

Have you actually been refused a mortgage?
Or are you getting ready?

There are mortgage providers like pepper money who say they will consider people with records like yourself.

ncoen

no havent applied yet! And wont be until 2018. But I've been saving and will be a good position to apply - just not happy to hear that AIB might refuse me because of something that happened years ago and that I've been paid.

I'm thinking PermTSB, KBC, EBS, etc.

What's pepper money?? I hate that I'm "people with records like yourself".... it was such a small amount and paid it back asap and have paid my due (in my opinion). I think that should be the end of my sentence, so to speak!

It's harsh but it will disappear.
None of us can tell what the reaction of any bank would be if you applied tomorrow - you could be fine.

ncoen

Thanks @pg633!! Appreciate the kind words ;-)

Smiley012

Hey I just posted this elsewhere, but figured it was relevant here:
I had some missed payments on my student credit card - mine was 2 standing orders I had forgotten about. I moved country, Mum was polite and didn't open my mail. 3 missed payments and the debt was written off by BoI - this was 2011.

Fast forward to this year, I'm trying to apply for a mortgage. 

KBC declined me, using that as the primary factor. Keep in mind I had stellar savings, solid employment history and no missed payments since. It was also for the grand total of 56euro. 

I applied to BoI, supplying the exact same information - my ICB report, my credit card statements from that period. They said it was a "genuine" reason, and I was approved for the mortgage. 

There's definitely hope! Good luck.

ncoen

Thanks Smiley012 - appreciate the kind words!Can I ask if your bad debt was still on the ICB report at the time of applying for a mortgage or was it cleared by then? I thought KBC wouldnt see it if it was with BoI!?? ;-/

Smiley012

Hey Ncoen,

ICB is viewable by all financial institutions as a way of verifying your credit history (and so they can make a decision on whether to loan to you!).

BoI wrote off the debt - not from my ICB, but from the credit card. I apologise, that probably wasn't clear!

When I applied for the mortgage through BoI and KBC they could see the missed payments on my ICB report from when I had the student credit card (oh sooo many years ago (4.5 years to be exact)).

BoI were just far more reasonable about it I guess!

ncoen

Ah I see - that makes sense! Because I'm waiting until the 5 yrs are up, and so it wont appear on my ICB report anymore, so no bank (aside from AIB) will be able to see it. Thanks a million for your advice, and everyone else! I suppose I'll just have to wait and see and hopefully I get approved when the time comes. I earn good money, have good savings, and currently no loans between my wife and I... just hope I don't regret being a naive 24 yr old haha!! ;-)