Poor credit rating but receiving inheritance is this a good idea?

Hi everyone so due to an injury at home 2020 I had to stop working I needed an operation but got it and in recovery, i feel into poor credit and ill be on list for 5 years after my debts are paid off so it's obviously impossible to get a loan!!

So I'm receiving €105k inheritance money, my debts amount to €26k and my daughter is starting college soon so I want to pay that too

So I'm thinking if I put the €100k into a credit union or bank would it be wise to take out a loan on the collateral collateral of the €100k to build up my credit score clear my debts and keep my €100k... its mostly to build up my credit score, is this a good decision and if so can someone tell me banks or credit unions or where that gives the best interest rates on this or any advice would be greatly appreciated

Thank you

No such thing as credit score in Ireland.

Use inheritance to clear debts.

Then do a Money Makeover on this forum.

Protocol said:

No such thing as credit score in Ireland.

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Blacklisted? When I pay my debts I'm Blacklisted for 5 years

Is there anything specific that you will need to borrow for in the future?

If not, you should instead be aiming to live with your means and keep out of debt in the future. The inheritance you're getting should give you the space you need to do this. You don't need to worry then whether you are 'blacklisted' or not.

It is great that you now have this €125K to set you up financially.
Use €25K to pay off your debt. In 5 years your credit report will be blank.
There is no need to take out a credit union loan to build up a credit rating, there is no such thing in Ireland. Do you think you will need to take out loans in the future, that you would have to €100K spent?
What to do with the remaining €100K depends on so many things. Doing a money makeover as linked above will get you lots of advice to make the best use of the €100K left. Your age, renting/mortgage, income, living costs, plans for the future all play a part.

I have just re-read your post, you inherited €105K so if you pay your €25K debt you will have €80K left.

You will need to consider your short term, medium term and long term financial goals in how you plan to use your inheritance.

You have identified a few
Short term. - Pay debt & help daughter financially through college.
Medium term - Get a good saving rate for the remaining money.

So think some more and post in the money makeover forum and you should get some good replies.

llgon said:

Is there anything specific that you will need to borrow for in the future?

If not, you should instead be aiming to live with your means and keep out of debt in the future. The inheritance you're getting should give you the space you need to do this. You don't need to worry then whether you are 'blacklisted' or not.

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Yes that's what I'm thinking will there be a need to borrow in the future!!

I certainly hope not but let's say I use that money to clear my debts and god forbid tragedy strikes a year down the line and leaves me with nothing...wouldn't it good to have an option of borrowing?

I'm a little confused. If you can borrow now - with an impaired credit report - how are you 'blacklisted'?

I would think dragging around an impaired credit report for longer than you need would - at the very least - limit your future borrowing options.

If you're worried about getting into the same situation as previously I would think an income protection insurance - rather than access to credit - might be a better option.

As others have said a money makeover thread is probably the way to go .

So many variables… are you back working? How old are you? Do you have a pension? Are you married, what’s your spouses situation….

Why do you think you’d need to borrow? I understand you’ve had a setback so you’ll be wary but barring medical bills that the state won’t cover (?). HAVING to borrow for what? Disability and other benefits will cover the basics.

Why would you borrow now? To buy a car?