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Credit Rating Change??

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  • 09-12-2009 10:24pm
    #1
    ziedth
    Registered Users Posts: 9,081 ✭✭✭


    Hi all,

    A family member is a real child of the boom and ran up a personal loan and when he lost his job couldn't meet the repayments and his loan and current account was closed and his details for repayment passed onto a collection agency.

    Now, good news in these harsh times he came into a bit of money and will be in a position to pay off what he owes the bank.

    My question, what would the situation be if he walked in and offered to pay back full amount if they changed his credit rating to positive? Is this even possible?

    He's in his 30's so fairly young and I know he'd like to not have that one mistake stopping him to get mortage.

    If it matters the amout owed is only about 4k.


Comments

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    #2
    Jet Black
    Registered Users Posts: 3,845 ✭✭✭Jet Black


    He wont be able to. The only reason a bank would change someones ICB is if the bank made a mistake.
    Basicly he broke the terms of the loan contract so even if he pays it off now his credit rating will still be bad.


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    #3
    KillerShamrock
    Registered Users Posts: 1,393 ✭✭✭KillerShamrock


    It would still be low for a number of years but will eventually go back to the normal/average grade i think its 6 years but not to sure. I stand to be corrected


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    #4
    Toots
    Administrators, Business & Finance Moderators, Society & Culture Moderators Posts: 16,920 Admin ✭✭✭✭✭Toots


    AFAIK, it will stay the same for 5 years after the debt has been fully repaid. Your relative should also be aware that there will be legal fees etc on top of the actual loan amount still outstanding. TBH, after defaulting on a loan (which is the impression I'm getting from your post) he'd be lucky to get a mortgage in the near future.


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    #5
    threebeards
    Registered Users Posts: 1,040 ✭✭✭threebeards


    Toots* wrote: »
    AFAIK, it will stay the same for 5 years after the debt has been fully repaid. Your relative should also be aware that there will be legal fees etc on top of the actual loan amount still outstanding. TBH, after defaulting on a loan (which is the impression I'm getting from your post) he'd be lucky to get a mortgage in the near future.


    It's likely that the loan has just been written off by the bank and unlikely that they would pursue a legal route unless the loan is very sizeable (over €40k/€50k) so on that basis he'll probably just have to pay the amount outstanding plus arrears. You're right about the 5 year period - the details of the loan remain active on the ICB until 5 years from the date of settlement. If there are arrears on the loan, he can forget about getting a mortgage until the ICB doesn't show that any longer i.e. 5 years from settlement.


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    #6
    ziedth
    Registered Users Posts: 9,081 ✭✭✭ziedth


    threebeards wrote: »
    It's likely that the loan has just been written off by the bank and unlikely that they would pursue a legal route unless the loan is very sizeable (over €40k/€50k) so on that basis he'll probably just have to pay the amount outstanding plus arrears. You're right about the 5 year period - the details of the loan remain active on the ICB until 5 years from the date of settlement. If there are arrears on the loan, he can forget about getting a mortgage until the ICB doesn't show that any longer i.e. 5 years from settlement.

    Thats not actually too bad.

    Thank you all for your help, I'll pass on all info

    Thanks again


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