# Credit Rating



## JennyD (14 Aug 2006)

How do you repair a bad credit rating?


----------



## NorfBank (14 Aug 2006)

Apologies if this answer is too simplistic but just stop missing payments on loans that you have and make sure whatever loans you have are paid up to date.
Credit arrangements stay on your Irish Credit Bureau for 5 years so it takes time to perfect your credit if there has been a legal judgement against you that is noted on your ICB


----------



## ClubMan (14 Aug 2006)

You clear your debts, make sure not to incur further debts that you might renege or get into arrears on, maybe annotate your _ICB _record and wait the five years for black marks to drop off. Note that the _ICB _store credit history records not credit ratings and lenders who refer to these records will draw their own conclusions about credit ratings/worthiness.



_Post crossed with NorfBank's._


----------



## JennyD (14 Aug 2006)

so basically if you have a bad credit rating you would have to wait five years to get a mortgage?  My boyfriend missed 3 repayments on a loan from the bank but has since paid it off and got another loan from same bank to try and fix this. he has paid off some of said loan early and is paying the repayments on time.  Would this make any difference?


----------



## ClubMan (14 Aug 2006)

JennyD said:


> so basically if you have a bad credit rating you would have to wait five years to get a mortgage?  My boyfriend missed 3 repayments on a loan from the bank but has since paid it off and got another loan from same bank to try and fix this. he has paid off some of said loan early and is paying the repayments on time.  Would this make any difference?


Not necessarily. It depends on what conclusions about credit worthiness/risk the lender draws from the individual's credit history. I don't understand how/why your boyfriend got a loan with the same lender to deal with a loan that he already had with them and on which he had missed payments!? For borrowers who find it difficult to get loans from the mainstream financial institutions there are also "sub prime" lenders but you will pay a premium (in the form of higher interest rates) for the privilege of borrowing from them.


----------



## GMC (14 Aug 2006)

Maybe if you applied to the same bank that he has the loan with for a mortgage he would be ok, if they were willing to give him a second loan and he has now got a good payment record.


----------



## JennyD (14 Aug 2006)

long story, he wanted to repair the credit rating so he thought to get a loan again would be the way to repair it, they gave it to him anyway but he had to wait 6 months before they did.  it was only a small loan thats why i wonder if they would agree to giving him a mortgage.


----------



## ClubMan (14 Aug 2006)

Why not shop around and apply to a few lenders and see how they respond? Even people with black marks on their credit history/record should shop around for the best deal and not unnecessarily limit themselves to one or a few lenders just because they think that they may be refused.


----------



## JennyD (14 Aug 2006)

thats true, or else he/we will have to go to money penny or mortgage cabin who charge high interest.


----------



## NorfBank (14 Aug 2006)

MoneyPenny and Mortgage Cabin are brokers not lenders.
All reputable brokers deal with the sub prime market (Start and GE money) so you do not have to deal with the named brokers.
Make sure that you are nor being charged an arrangement fee by the broker as the lender pays the broker commission.


----------



## JennyD (14 Aug 2006)

are these mortgages higher repayments tho?


----------



## NorfBank (14 Aug 2006)

Yes.
They are marketed as a stop gap measure. Keep up your repayments for 18 months then you may be eligible for a prime mortgage (e/g BOI/AIB/Ulster Bank).
You will have to take the pain of higher repayments for the first 18 months at least if you do not qualify for a prime mortgage.


----------



## JennyD (14 Aug 2006)

i suppose thats not so bad if it were only for 18 months.


----------



## JennyD (14 Aug 2006)

thanks for everyones help by the way


----------



## NorfBank (14 Aug 2006)

AT LEAST 18 months, again depends on how your Irish Credit bureau looks. If it's a couple of missed payments on a loan then 18 months should be long enough. Of course if there are judgements against either of the applicants then the minimum period to perfect your credit history will be extended. 
Have a word with the prime lenders to see how they rate your case before signing up with a sub prime lender.


----------



## JennyD (14 Aug 2006)

its three missed repayments that are repaid in full now.


----------



## roxy (14 Aug 2006)

Hi Jenny,

Believe it or not, some banks are sympathetic to people like yourselves, just depends on who you get. Go to the manager of the said bank and explain that while you had some difficulty before you feel that you are now in a position to get a mortgage, you never know. Bizzarely, my bank rang me the other day to tell me that I'd missed a payment on my loan in August 2005 (just 1 week's payment mind) and yet they had offered me a mortgage in September 2005! So you never know.


----------



## irishpancake (14 Aug 2006)

Have you applied to the ICB to check what's on your BF's Credit Report. 

Just ckeck it out, you won't know until you do, here's the link:

[broken link removed]


----------



## Guest107 (14 Aug 2006)

JennyD said:


> .. got another loan from same bank to try and fix this. he has paid off some of said loan early and is paying the repayments on time.  Would this make any difference?



Thats leverage . The problem is that you need to get this evidence to a real human manager in the back office in the mortgage lender who can over ride the _computer sez no _computer after it automatically does an ICB check and finds 'marks' against the BF.

Its not a repair but an override.

Any "sub prime" mortgage will cost at least 1% more than a normal variable from a prime lender on the interest rate. As the prime lenders are looking at 4.2% variable rates nowadays you will pay 5.2% on a sub prime, or more.


----------



## bond-007 (15 Aug 2006)

Rates of 7% are common.


----------



## JennyD (15 Aug 2006)

Unfortunately i have no idea of interest rates, do they make a huge difference to mortgage repayments? he has sent off his form to the ICB to check his credit rating so we are just waiting on that now.


----------



## Guest107 (15 Aug 2006)

a massive massive difference every month  . Buy a €2 calculator for yourself.

Prime Mortgage 35 years €300k , 4.2% interest
Sub Prime Mortgage 35 years 300k, 7% interest 

(figures below from)  http://www.jeacle.ie/mortgage/ie/

Repayments monthly are therefore either 

*€1364* at 4.2% (normal variable not discount variable which would bring them below €1300 in year one)
*€1917* at 7%

Frankly if you do not understand the immediate effects of interest rates when they are rising every few months at present and will continue to rise until next year then you have no business getting yourself a mortgage at this time  

What rate did the broker quote ye and was that before or after the last interest rate rise ???


----------



## JennyD (15 Aug 2006)

Personally I dont think thats a very fair comment that I have no business getting a mortgage if i do not not understand the immediate effects of rising interest rates.  A lot of people are clueless when it comes to getting a mortgage and all the jargon that goes along with them, thats why i am on this site to get a better understanding of things.  But thats your own opinion.  

I havent gone to a broker yet as we are awaiting the credit report.


----------



## Guest107 (15 Aug 2006)

I would expect the broker to quote you a rate of around 5.5% from a sub prime lender if those misses are noted in the credit report , higher if he is self employed . 

If not you may get a prime lender as indicated.

Use the calculator I linked. Thats what its for.

Also note that your term may be lengthened by your lack of leverage and that this may have an effect on insurance costs  , if your term was shorter the insurance costs could be cheaper depending on age etc.

If a smoker who gives up _now_ the savings on insurance would be massive one year later...once the ICB is clean (if applicable ) .



these are all factors .


----------



## JennyD (15 Aug 2006)

thanks for the help.  would our mortgage (if we got one) the whole duration of it be with a sub-prime lender?


----------



## Guest107 (15 Aug 2006)

no because you can remortgage (with some prime lender ) eventually when the ICB record is clear .

is he self employed though ???

if a civil servant they can be most forgiving .


----------



## momomo (15 Aug 2006)

JennyD said:


> Personally I dont think thats a very fair comment that I have no business getting a mortgage if i do not not understand the immediate effects of rising interest rates. A lot of people are clueless when it comes to getting a mortgage and all the jargon that goes along with them, thats why i am on this site to get a better understanding of things. But thats your own opinion.
> 
> I havent gone to a broker yet as we are awaiting the credit report.


 
JennyD, thats what this site is for, its how I understood all the ins and outs of my mortgage, so you have every right to ask these questions. 

Hope everything works out for you


----------



## niamh80 (15 Aug 2006)

MoneyZone if your desperate a proper bank should take you on after 6 -12 months of not missing payments.


----------



## JennyD (15 Aug 2006)

2pack:  No he isnt self employed.  and unfortunately not a civil servant.  so its not all bad news at least.  

momomo: thank you and so do I!! 

niamh80: ill check that out thanks!


----------



## Guest107 (15 Aug 2006)

self employed persons with credit impairment may end up paying this 7% rate, if he is employed and has been there for a while you will end up paying 1-1.5% over prime variable I would think (5.5% ish at present) .


----------



## JennyD (15 Aug 2006)

i see. I emailed moneyzone with a query, told them situation and just informed them of what our combined income was, how much did they think we could get a mortgage for and would the interest rates be higher and they just replied with "If you would like to call me I can definitely help you geta  mortgage".  should i be believing this?


----------



## Guest107 (15 Aug 2006)

sounds strange, email them again demanding a quote.


----------



## CCOVICH (15 Aug 2006)

A lot of companies want to get you on the phone as opposed to providing info via e-mail.


----------



## niamh80 (15 Aug 2006)

JennyD said:


> i see. I emailed moneyzone with a query, told them situation and just informed them of what our combined income was, how much did they think we could get a mortgage for and would the interest rates be higher and they just replied with "If you would like to call me I can definitely help you geta mortgage". should i be believing this?


yes they seem  to be able to give them my friend went to them as her husband had a bad rating and they were getting it straight away as it happened when they went to there own bank manager which had given them a refuseal  with the letter of approval from Money Zone the other bank decided to give them the money but €25,000 less which was fine for them MoneyZone rates are a lot dearer but it's a start if you can manage for a few months before the normal banks will take you on.By the way when Money Zone received all the paper work they had an answer the following day.


----------



## JennyD (16 Aug 2006)

The interest rates seem pretty high but i suppose we have no choice really.  thanks for that its good to know that we could possibly still get a mortgage tho.


----------



## CCOVICH (16 Aug 2006)

JennyD said:


> The interest rates seem pretty high but i suppose we have no choice really.


 
Of course you do-you don't have to take out a mortgage/buy a property now-wait until your credit rating will allow you to borrow at standard rates.


----------



## liteweight (16 Aug 2006)

Have you been turned down by the prime lenders yet?? If not I think they are the first ones to approach.


----------



## JennyD (16 Aug 2006)

No havent approached sub-prime lenders, just assumed that they wouldnt come near us.


----------



## liteweight (16 Aug 2006)

I wouldn't make any assumptions if I were you. Check everything out in order to get the best deal. ( I take it you meant 'prime' lenders).


----------



## roxy (16 Aug 2006)

JennyD said:


> No havent approached sub-prime lenders, just assumed that they wouldnt come near us.


 
Jenny, from the first page on this thread people, including myself, have advised that you try prime lenders and see what happens. You seem to have ignored that advice in favour of a sub prime lender. I would suggest again that you try talking the bank that you and your partner had trouble with, and see what comes out of it.


----------



## JennyD (16 Aug 2006)

liteweight: yes i did mean prime my bad!

roxy:  i will actually try them first, i just assumed (maybe wrongly) it was a no go.


----------



## roxy (16 Aug 2006)

You really should, all they can say is no, but as I say - you never know! Good Luck with it all.


----------



## JennyD (16 Aug 2006)

thanks roxy fingers crossed anyway


----------



## Cowboy77 (16 Aug 2006)

if it's any comfort Jenny I had all sorts of financial troubles when I was on trainee's wages and missed several payments on a loan.It's all been repaid almost five years ago and I had paid off other loans since but I had no trouble getting a mortgage with a primelender even though they did comment on the missed payments in the past.


----------



## JennyD (16 Aug 2006)

Really?? thats good to know so, he cleared them about a year and a half ago i think.


----------



## sp@rtacus (5 Sep 2006)

Hi JennyD, 

Have belatedly come across this thread and was curious to know how things have progressed for you and the bf. For what its worth, I had some very dubious debt issues a number of years ago where not only did I miss payments, but the loan was eventually written off to a credit recovery agency, who finally got their pound of flesh. A very sorry episode in all and one which weighted very heavfily over me so much. Anyway, I subsequently applied for and was given a substantial car loan and thereafter a very sizable mortgage. Although my circumstances had improved in the interim, the 5 years purging period had not elapsed so I was a little stunned (to say the least) that not only did I secure the mortgage with such blemishes on my record, but none of this was ever even mentioned..?
Just goes to re-iterate what others may have suggested.. stick your neck out and ask, you may be surprised too?

Good luck


----------



## bond-007 (5 Sep 2006)

I got an ICB report recently and it only had 2 years history on it. Maybe that was the reason you got treated reasonably?


----------



## Humpback (3 Oct 2006)

Following all the comments here on AAM, I requested a check on my credit history recently.

I gave them all the address that I've ever lived in in Ireland, but the report did not include a credit card that I have with BOI or my mortgage with Ulster Bank.

Credit card I would have expected to see there. Should the mortgage have been there as well?

Also, the credit card I have for 10 years and haven't missed a payment. Am I losing out a little in that positive credit history not being there - considering that I only have my 2nd credit card for 6 months?


----------



## ClubMan (3 Oct 2006)

Can't you ask them to correct any errors or omissions on your credit history records?


----------



## Humpback (3 Oct 2006)

ClubMan said:


> Can't you ask them to correct any errors or omissions on your credit history records?


 
I suppose I was giving this more as information rather than anything else. However, have just checked that now. Apparently not - must go through the financial institutions concerned.



> If you find a mistake in your report, ask your lender to write to the ICB with details of the change, and request a copy of their letter......*Please note:* ICB cannot change your credit report unless a lender requests it to do so in writing.


----------



## Esme (3 Oct 2006)

ronan_d_john said:


> Following all the comments here on AAM, I requested a check on my credit history recently.
> 
> I gave them all the address that I've ever lived in in Ireland, but the report did not include a credit card that I have with BOI or my mortgage with Ulster Bank.
> 
> ...


 
I also had the same thing, neither a Bank of Ireland loan that i had or the bank of ireland Credit card showed up on mine.


----------



## fobs (3 Oct 2006)

> also had the same thing, neither a Bank of Ireland loan that i had or the bank of ireland Credit card showed up on mine


 
I thought very few credit cards are reported on the ICb with the exception of MBNA?


----------



## ClubMan (3 Oct 2006)

I thought that most or all _CC_ providers only reported missed payments and not just the existence of a _CC _credit agreement? Unlike other loans?


----------



## Satanta (3 Oct 2006)

Oasis said:
			
		

> Credit cards and credit history
> 
> From July 2004, credit card companies have the option of supplying           more information on credit card repayments to the ICB. In the past, information           was mainly supplied by the lenders only where credit cards were revoked or           cancelled. Now lenders have the option of supplying full information regarding           opening and closing balances to the ICB. Your card repayment performance will           be measured by the ICB on a monthly basis but due to the nature of credit           cards, you will also receive an additional 30 days before negative information           about your record is recorded.






Seems it's optional for additional information on CCs to be added.


----------



## Molly (3 Oct 2006)

> I gave them all the address that I've ever lived in in Ireland, but the report did not include a credit card that I have with BOI or my mortgage with Ulster Bank.


 
The ICB obtains its data from the lenders, the reason your data did not appear on the report is because Neither BOI nor UB returned the data to ICB. The lenders who are members of ICB have a responsibility to ensure any loans or debts not repaid within the agreed time, or have arrears are recorded on the ICB. if you had arrears then both BOI and UB would have forwarded this data on to ICB. 



> Also, the credit card I have for 10 years and haven't missed a payment. Am I losing out a little in that positive credit history not being there - considering that I only have my 2nd credit card for 6 months


?

Not really, when a lender does an ICB check it is to ensure there are not any arrears or judgments. You can supply your own statement showing all repayments have been met on any loans you have. 


> I got an ICB report recently and it only had 2 years history on it. Maybe that was the reason you got treated reasonably?


 
if you have met all repayments on a loan and the details are recorded on ICB then generally it will show the last 24 payments, if however you had arrears in say 2002, then the ICB will show repayments for the last 60 payments, ( 5 years) so that the arrears from 2002 ( 4 years ago) are shown.


----------

