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Revoked Credit Card and Credit Rating - advice please

  • 07-08-2020 12:56pm
    #1
    edenbridge146
    Registered Users Posts: 153 ✭✭


    Hi folks - looking for advice here
    A credit card from AIB was ran up by my now Ex husband.
    Balance was 7,000. - Missed 5 payments as it was height of recession and hubby out of work etc etc, i'm managing everything on my own and most important thing for me was to keep the mortgage paid etc

    Anyhow moving on, when me and hubby separated in 2014 - i still have this credit card bill ironically which he ran up - - you'd do anything for peace - due to his non working and his older age he couldn't get any credit in his own name

    Im receiving no maintenance from hubby as he's 61 at this stage and no work.
    Im keeping the mortgage going and the 2 kids age 14 & 11 at the time.
    So after being in contact with AIB, the card was cancelled and i agreed to pay 50 a month. The balance was approx 7,000
    2 years ago I then agreed to pay 75 a month. I haven't missed a payment in the 7 years since this card was revoked and the account was closed
    Current balance is 2,000

    Now heres the stickler - applying for a new mortgage with new partner now in 2020
    I have a mortage of 68,000 on current home - house worth 550k and never missed a payment, Savings of 40k but the new mortgage company in my initial stages of application are making a big deal about this revoked credit card

    All my bills are always paid and this credit card is showing as revoked with an outstanding balance of 2,000 which i am continuing to pay - the main reason i haven't paid it in full is due to this debt being used as leverage in my divorce settlement - still waiting on court date.......

    I'm trying to 'fix' this - what should i do or any advice in applying for mortgage

    Considering it was revoked in 2013, why is it still showing in 2020 ?

    I would appreciate any advice on this

    Many thanks

    Edenbridge


Comments

  • #2
    Hollybeg
    Registered Users Posts: 58 ✭✭Hollybeg


    edenbridge146 wrote: »
    Hi folks - looking for advice here
    A credit card from AIB was ran up by my now Ex husband.
    Balance was 7,000. - Missed 5 payments as it was height of recession and hubby out of work etc etc, i'm managing everything on my own and most important thing for me was to keep the mortgage paid etc

    Anyhow moving on, when me and hubby separated in 2014 - i still have this credit card bill ironically which he ran up - - you'd do anything for peace - due to his non working and his older age he couldn't get any credit in his own name

    Im receiving no maintenance from hubby as he's 61 at this stage and no work.
    Im keeping the mortgage going and the 2 kids age 14 & 11 at the time.
    So after being in contact with AIB, the card was cancelled and i agreed to pay 50 a month. The balance was approx 7,000
    2 years ago I then agreed to pay 75 a month. I haven't missed a payment in the 7 years since this card was revoked and the account was closed
    Current balance is 2,000

    Now heres the stickler - applying for a new mortgage with new partner now in 2020
    I have a mortage of 68,000 on current home - house worth 550k and never missed a payment, Savings of 40k but the new mortgage company in my initial stages of application are making a big deal about this revoked credit card

    All my bills are always paid and this credit card is showing as revoked with an outstanding balance of 2,000 which i am continuing to pay - the main reason i haven't paid it in full is due to this debt being used as leverage in my divorce settlement - still waiting on court date.......

    I'm trying to 'fix' this - what should i do or any advice in applying for mortgage

    Considering it was revoked in 2013, why is it still showing in 2020 ?

    I would appreciate any advice on this

    Many thanks

    Edenbridge

    First, to answer your last question, if a credit card is revoked it creates a black mark on your credit record until same is SETTLED (i.e. paid off in full or wrote off (part or full) PLUS will remain on your record for an additional 5 years after settlement.

    The only thing you can do is be upfront about what happened and hope that same is taken into consideration. It really does depend on the bank in question. I would engage the services of a mortgage broker to do your bidding for you (as opposed to dealing directly with a bank). Best of luck.


  • #3
    Shadow2019
    Registered Users Posts: 40 ✭Shadow2019


    Hey there , sorry to hear about your predicament I am in a similar position. The debt stays on record for 5 additional years once it’s paid. Have you requested a copy of your reports? It’s you have been paying monthly this will also show you have no missed payment etc and will help your case. For us I paid balance in March 2019 and no bank/finance Ireland will entertain us until 2021 but mine is a debt collection not the bank direct. Best of luck!


  • #4
    Water2626262
    Registered Users Posts: 214 ✭✭Water2626262


    I’d say their main issue is not that it happened but the fact that debt is outstanding. You have savings and large equity in the house. I know you stated it may affect your divorce settlement but can you not clear it in full? That’s the first step anyway in getting it off your credit rating (albeit it’ll be there for another 5 years)

    So in summary you can explain to the bank the difficult circumstances that led to this happening, the fact that you’ve been honouring the full debt, why you didn’t clear it in full sooner and now it’s paid in full.

    The positives are you have honoured the full debt (legacy Celtic tiger credit card write downs / settlements common enough) all these years. You also have taken on more than your fair share of responsibility for this issue as it was a joint account. Surely the bank will see some sense.


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