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Missed direct debit and implications for credit rating

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  • 02-01-2015 2:45pm
    #1
    Piriz
    Registered Users Posts: 1,269 ✭✭✭


    Hi,

    I missed a direct debit for Electric Ireland in recent weeks due to insufficient funds in my current account and I'm wondering how this will impact my credit rating...particularly when making mortgage applications in the next few months.

    any info appreciated..


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    #2
    Paulw
    Registered Users Posts: 13,381 ✭✭✭✭Paulw


    It shouldn't be a problem at all. They will represent the direct debit again during the month and as long as the funds are there it will barely register on their systems.

    If it's a once off thing, then it will have no impact on your credit rating for a mortgage application.


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    #3
    davo10
    Closed Accounts Posts: 6,926 ✭✭✭davo10


    Piriz wrote: »
    Hi,

    I missed a direct debit for Electric Ireland in recent weeks due to insufficient funds in my current account and I'm wondering how this will impact my credit rating...particularly when making mortgage applications in the next few months.

    any info appreciated..

    Overall it won't EI isn't a credit institution registered with the CB, but your bank manager will not be impressed that you missed a dd due to insufficient funds, no doubt he/she will ask you how you are going to make monthly mortgage repayments if you can't afford the electricity.


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    #4
    Piriz
    Registered Users Posts: 1,269 ✭✭✭Piriz


    davo10 wrote: »
    Overall it won't EI isn't a credit institution registered with the CB, but your bank manager will not be impressed that you missed a dd due to insufficient funds, no doubt he/she will ask you how you are going to make monthly mortgage repayments if you can't afford the electricity.

    i noted in my post that it was a lack of funds in my current account (I have other accounts) this does not represent my affordability to pay my bills...


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    #5
    Woshy
    Registered Users Posts: 1,429 ✭✭✭Woshy


    We had two returned direct debits on our account when we applied for our mortgage. It was just me not keeping an eye on our current account well enough, there was plenty of money in our savings but a few direct debits came out late one month so we got caught out - I think it was Electric Ireland and our car insurance. It happens to everyone from time to time.

    The only place where this was an issue (or even mentioned to us) was PTSB - they said that without these two returned direct debits they would have offered us 50,000 more which seemed a bit ridiculous to me. The mortgage consultant said she advised we applied again in 6 months time with no unpaid direct debits.

    Maybe the other banks took it into account and didn't say it to me but I don't know, they did all offer us more than PTSB did. We did not get our mortgage with PTSB anyway :D!

    I've been warning my friends who are thinking about applying for mortgages to be extra vigilant about their direct debits!


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    #6
    myrns
    Registered Users Posts: 49 ✭myrns


    Hi does anyone know how long a bounced direct debit affects your credit rating for? Any advice appreciated!


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    #7
    myrns
    Registered Users Posts: 49 ✭myrns


    Mr.S wrote: »
    Utility companies have no impact towards your credit rating.

    Thank you so much!! Should've posted this years ago and saved myself the torture! :) AND another question from a friend, do bounced direct debits for car insurance affect it?


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    #8
    Ken.
    Closed Accounts Posts: 12,898 ✭✭✭✭Ken.


    Have a read of this to put your mind at ease. http://www.citizensinformation.ie/en/money_and_tax/personal_finance/debt/credit_ratings.html


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    #9
    myrns
    Registered Users Posts: 49 ✭myrns


    Appreciate that! Makes it clearer, thanks :)


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    #10
    Crumbs868
    Closed Accounts Posts: 438 ✭✭Crumbs868


    Mr.S wrote: »
    Utility companies have no impact towards your credit rating.

    Digging in further than the OPs exact question..

    While it may not impact your credit rating it may still impact your mortgage application. Bank staff trawl through your bank statements in huge detail when processing a mortgage application so a refused direct debit will have to be explained and if there are many then it's surely a negative against you and not without consequence


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