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Revoked Credit Card

  • 25-04-2023 11:52am
    #1
    Fiachramurph
    Registered Users, Registered Users 2 Posts: 1 ✭


    AIB revoked my credit card for not meeting the required payments in September 2022. I have set up a payment plan so the debt will be cleared by 2023.

    I understand banks won't entertain a mortgage for me until at least 2 years has passed since the CC debt has been cleared (Sep 2025).

    I also have an overdraft and Avant loan, so my question is does both the overdraft and loan have to be paid off in full before the 2 year policy kicks in? Or could I clear the OD and loan off over the next 2.5 years and then by the time Sep 2025 comes around as long as I have zero debt and the required deposit / history of savings then I would be considered for a mortgage?

    I have stock options that will mature in Sep 2025 which I plan to use as a deposit.



Comments

  • #2
    Squiggle
    Registered Users, Registered Users 2 Posts: 1,257 ✭✭✭Squiggle


    Borrowings will affect the size of the mortgage you can get so it depends on the numbers ie salary , loan repayments , duration.

    I'm not familiar with the 2 year time frame you refer to regarding your revoked credit card and a mortgage application but information about your credit card situation will remain on your credit record for 5 years after the last payment.



  • #3
    Vicxas
    Registered Users, Registered Users 2 Posts: 15,449 ✭✭✭✭Vicxas


    You will have a mark on your record for 5 years for any bad debt.


    I was in a similar spot as yourself where i cleared an old credit card but never closed it and was charged the government stamp duty. This lead to an outstanding balance and caused me to have a black mark on my credit score.

    When we went to apply for a mortgage we were advised to write a letter stating what had happened to the underwriters. Basically holding your hands up and apologising. Now im not sure if the size of your debt is a factor but i wish you luck with your application .



  • #4
    walterking
    Registered Users, Registered Users 2 Posts: 1,297 ✭✭✭walterking


    I'd clear the credit card debt asap.

    Then clear the overdraft.

    A few months of frugal living will sort it - go though every expense and see what the alternatives are. eg Phone €40 - alternative 48.ie @ €12.99, SKY TV - alternative, free sat (free) etc.

    You'd be very surprised how it adds up. I did an exercise for someone recently on their spending and cut over €400 a month off their expenditure and no descernible drop in lifestyle. (she was spending €4 every morning on coffee - now has a nespresso and travel cup - that alone was €60 a month saving)



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