Can my credit card give me a bad credit history?

dlane99

I've just left college and am thinking about buying a house with my girlfriend.

I am only just started work and am on 24k.
I wasnt planning on buying till the new year because I was told that the
mortgage lender will want to see at least 6 months of wages being paid into
my bank account. I'll be able to show that in the new year.

My girlfriend is on 22.5k and has been working for over a year.

By the new year we will probably be on 26k & 24K... 50k combined.

My girlfriend has an ssia that will be worth about 20k.

I took out a loan in sept. '05 for 7k, to finance college,etc. I was supposed to
have it paid off by sept. 07.
I've been making repayments fine and its down to 4.5k, no problem there.
My girlfriend is going to pay off the rest of it for me in May and I'll use the
money that I would have used as loan repayments as savings, so that I wont
have any loans in the new year when we apply for a mortgage and I'll have a
pattern of savings to show the bank.

Here is my problem...

I've been doing some reading up about mortgages etc. and I came accross
a few threads here about credit ratings etc. and what they can mean
when applying for a mortgage.

I've had a credit card for the last few years and have been using it for spare
cash now and then, I pay off when I can.
Its normally clear by the end of the summer while I'm working a summer job
but during the last 3 college years its I've normally had about 900e on it
during the year.
In short, during the summer its clear, but between sept and may I always
have about 900e in debt on it. This pattern has gone on for the last 3 years.
I never thought it would be a problem cos I could pay it off when I was
working.

I am going to apply to the icb for a report on my credit history tomorrow.

I'm starting to get worried that my credit card will show up on the report
saying that it was constantly overdrawn that it will look very bad.

Does anyone know what the story is with credit cards and credit history?

Will it just show up saying that I have a credit card or will it ever be mentioned?

I have a limit of about 1800e on my card and have never gone over that.
The bank have never written/rang me about my credit card.

worried

Laguna

Why would you think you'd have a problem in regard to your Credit card?, you never went overdrawn, always kept it within it's limits even though you never cleared it on a regular basis, face it, you're a credit cards ideal customer - money lenders hate when people pay off the credit card debt in its entireity each month as it deprives them of their interest from you!. Jesus man, you said yourself it was always floating around the €900 mark, that's of no real consequence!, mine has always sat around €500 and to get any sort of a loan (big/small) from the Bank Of Ireland (my bank for five years), I just have to snap my fingers and they're prepared to throw their money at me. I really don't think you'll have any trouble at all .

DOLEMAN

If you've never gone over your limit, and you generally make your minimum payment, you are in fact a good customer and will have a good credit rating.

Good credit ratings are where people are in debt and make their repayments. They are not about people who have never had debt!

Do you always make your minimum payment...?

dlane99

Laguna wrote:

Why would you think you'd have a problem in regard to your Credit card?, you never went overdrawn, always kept it within it's limits even though you never cleared it on a regular basis, face it, you're a credit cards ideal customer - money lenders hate when people pay off the credit card debt in its entireity each month as it deprives them of their interest from you!. Jesus man, you said yourself it was always floating around the €900 mark, that's of no real consequence!, mine has always sat around €500 and to get any sort of a loan (big/small) from the Bank Of Ireland (my bank for five years), I just have to snap my fingers and they're prepared to throw their money at me. I really don't think you'll have any trouble at all .

Thats some bit of a relief!
I thought me having 900e in debt on my cc was being overdrawn.

DOLEMAN wrote:

If you've never gone over your limit, and you generally make your minimum payment, you are in fact a good customer and will have a good credit rating.

Good credit ratings are where people are in debt and make their repayments. They are not about people who have never had debt!

Do you always make your minimum payment...?

nope:(
I normally dont pay off much during the college year,
I just let it build up between sept and may and then pay it off during
the summer.

dlane99

Any other ideas?

Sponge Bob

if you never ever missed a minimum payment on that card, no matter how skint you were, then you have no negative mark against you.

dlane99

Sponge Bob wrote:

if you never ever missed a minimum payment on that card, no matter how skint you were, then you have no negative mark against you.

and if I always missed the minimum payment?

drdre

most credit card companies are fine.but if you have a loan and donot pay it then you have negitive credit rating,otherwise you should be fine.

dlane99

ok, i think i always met my loan repayments.
hopefully the credit card wont show up.

drdre

dlane99 wrote:

ok, i think i always met my loan repayments.
hopefully the credit card wont show up.

what exactly is wrong with credit card payments.did you not pay in time or what?what credit card company are you with?

dlane99

drdre wrote:

what exactly is wrong with credit card payments.did you not pay in time or what?what credit card company are you with?

i often went for a period of 9 months using my credit card to buy stuff but never paying off anything.
then in the summer i would clear it off and let it build up again.
I never made any repayments on my credit card during the college year.

I have a mastercard with aib.

Spocker

dlane99 wrote:

i often went for a period of 9 months using my credit card to buy stuff but never paying off anything.

Then yes, these will show up as missed payments on your ICB report. However all is not lost; when submitting your application, the mortgage provider will look at the same information, so have a copy of your ICB report to hand and say "Yes, I did miss payments as I was in college, but as you can clearly see, all amounts were cleared during my working times, this shows my ability and inclination to pay....." etc etc etc.

At the end of the day the decision will be made by a human so it's their sense of goodwill you need to appeal to. You can't do anything about the missed payments now, so prepare your background information, stressing the payments you made when you had the opportunity.

Good luck!

shoegirl

dlane99 wrote:

I've just left college and am thinking about buying a house with my girlfriend.

I am only just started work and am on 24k.
I wasnt planning on buying till the new year because I was told that the
mortgage lender will want to see at least 6 months of wages being paid into
my bank account. I'll be able to show that in the new year.

My girlfriend is on 22.5k and has been working for over a year.

By the new year we will probably be on 26k & 24K... 50k combined.

My girlfriend has an ssia that will be worth about 20k.

I took out a loan in sept. '05 for 7k, to finance college,etc. I was supposed to
have it paid off by sept. 07.
I've been making repayments fine and its down to 4.5k, no problem there.
My girlfriend is going to pay off the rest of it for me in May and I'll use the
money that I would have used as loan repayments as savings, so that I wont
have any loans in the new year when we apply for a mortgage and I'll have a
pattern of savings to show the bank.

1. You need to be 3 years in a job for most lenders
2. You're a bit young for borrowing so much
and lastly, 3. 50k is very low for a couple

I'd recommend investing the savings, saving some more and waiting till both your incomes rise (they will significantly) before buying.

dlane99

shoegirl wrote:

1. You need to be 3 years in a job for most lenders
2. You're a bit young for borrowing so much
and lastly, 3. 50k is very low for a couple

I'd recommend investing the savings, saving some more and waiting till both your incomes rise (they will significantly) before buying.

I thought the 3 years was only for 100% mortgages?
We are hoping to get a 92% mortgage.

BuffyBot

i often went for a period of 9 months using my credit card to buy stuff but never paying off anything.

I'm very surprised you weren't getting some calls from the bank..

Sizzler

Simple answer is, if you dont pay them over a period of time its going to go against you if trying to get loans in that period. If you are paying them something each mth (however small) then theres no issue as you are demonstrating you can & want to pay. If you have fcuked them over though and they have got your name published in stubbs gazette then you are bollixed. General slack payments though wont go on your big bad file, banks etc only look at outstanding debt at that point in time.

dlane99

Thanks for the info guys.
Very helpful.
Am less worried now.
Will let ye know if they are on the report from the ibs.

drdre

Dr. Spock wrote:

Then yes, these will show up as missed payments on your ICB report. However all is not lost; when submitting your application, the mortgage provider will look at the same information, so have a copy of your ICB report to hand and say "Yes, I did miss payments as I was in college, but as you can clearly see, all amounts were cleared during my working times, this shows my ability and inclination to pay....." etc etc etc. quote]

whats an icb report.
is it possible to get your credit rating report from anywhere.i heard theres a place in conskeagh.is that true.
anyone have any contact details

Eoin

Have you tried google?

http://oasis.gov.ie/personal_finance/irish_credit_bureau.html

As I understand it, The ICB report only provides a history of your credit history, it does not provide a rating. It is up to the individual lender to do this, based on the report.

drdre

eoin_s wrote:

Have you tried google?

http://oasis.gov.ie/personal_finance/irish_credit_bureau.html

As I understand it, The ICB report only provides a history of your credit history, it does not provide a rating. It is up to the individual lender to do this, based on the report.

yeah i went onto http://www.icb.ie/ and i have requested a form.i just want to fiind out the history just for the sake of it.;) it only costs 6 euro so it worth it.