# Repairing credit history ?



## fizzgig (19 Jun 2009)

Hi All,

About 4 years ago , i fell into a fair amount of debt. 
I have seen my ICB report, it seems to have one black mark - which relates to a revoked credit card.
I have since paid off everything - was lucky enough to be able to take out a credit union loan of 30k and have been repaying this for 5 solid years - 600per month. This will be cleared shortly.

I think i already know this, but would this black mark automatically exclude me from a mortgage, especially now ?

We have a large deposit for a house, plus my partner has just been made permanent in the public sector..
Our rent would currently be more then the mortgage we are seeking. Plus once credit union are paid, i will have an extra 600 per month added to my wages. Would this be looked at kindly, or would the black mark super-seed everything else..

We have spotted a very affordable home and im worried as hell that my credit report will stop us from buying.. rightly so, i should think..

Any thoughts ? should i bother applying at all and save myself the heart ache. Feel now like im holding my partner back...


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## chlipps (19 Jun 2009)

can you quote some more details on incomes, proposed mortgage versus the large deposit you have mentioned... 

If your partner has large deposit could your partner purchase on their own and then i assume your credit history would not be in the equation?


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## samanthajane (20 Jun 2009)

I think with the current situation and from reading other posts, even without that 1 black mark it could be hard for you to get a mortgage. 

But it was 4 years ago, you have not missed a single payment since then. I'm not sure if you can do it in Ireland but is there not a way that you can put a explanation note on your credit report for companies to see when they are reviewing your credit report to explain why this happened. 

The more of a deposit you have to put down the better i think your chances would be. 

Apply anyway, it not going to cost you anything, at lest that way you will know. 

If the worst should happen and you are refused because of this 1 mistake 4 years ago, then it's not all bad news. In 2 years time it will be removed from your credit report. You can use that time to save up more of a deposit, and have a lower mortgage. And there is nothing stopping you from apply again in another 6/12 months. 

There are loads of very affordable houses around at the moment and if the hype is to be believed thats not going to stop next week. You will find another property that you like and that is affordable to you as well.


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## dutz (23 Jun 2009)

you will need to wait until you are over 5 years on the Irish Credit Bureau - 

I am seeing this on a daily basis people with one missed payment here or there and the banks are refusing them mortgages !!


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## Mumha (26 Jun 2009)

dutz said:


> you will need to wait until you are over 5 years on the Irish Credit Bureau -


 
Does that mean 

1) it will fall off the system automatically ?

2) you have to apply for it to be removed ?

3) you don't have to mention it on a mortgage application ?

4) there are other Credit Rating agencies where it will be maintained for longer ?


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## demoivre (26 Jun 2009)

dutz said:


> you will need to wait until you are over 5 years on the Irish Credit Bureau -



More precisely.  " When the loan is completed or when it reaches a _frozen_ state, i.e. when it is _Written Off_, this means that the 5-year retention term _clock_ *starts* ticking. In other words, regardless of what the customer’s performance on the loan was like, once the loan is _terminated_ in its current state - it will then stay on the ICB Database for 5 years from that date."


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## Lialus (1 Jul 2009)

demoivre said:


> " When the loan is completed or when it reaches a _frozen_ state, i.e. when it is _Written Off_, this means that the 5-year retention term _clock_ *starts* ticking. In other words, regardless of what the customer’s performance on the loan was like, once the loan is _terminated_ in its current state - it will then stay on the ICB Database for 5 years from that date."


 
Does this mean that if I have missed a payment in the first year of a 5 year loan , that missed payment is still on my file 5 years from the end of the loan ( 9 years in total )


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## demoivre (3 Jul 2009)

Lialus said:


> Does this mean that if I have missed a payment in the first year of a 5 year loan , that missed payment is still on my file 5 years from the end of the loan ( 9 years in total )




		Typically, the borrowers payment profile history is reported over a 		24-month repayment period so, depending on when your profile is viewed, the missed payment might not be seen. That said your CBS is generally adversely affected by missed payments.


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## DiGiTaL (3 Jul 2009)

I had the same problem when i applied for a mortgage. Everything fine except for a revoked credit card 4 years previous. I was applying with PermTSB and had the credit card with AIB. I went to the AIB branch manager and asked him would he be so kind as to do up a letter stating that all my accounts and loans had been in perfect order since and that the revoked credit card was fully paid up promptly. He did and I got the mortgage. Would not have otherwise. Hope this is of some help. You would bring this letter with you when applying for mortgage.

P.S. I would never apply for a mortgage via an online application (Not that you said you were)


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