Credit Rating

worriedparent

Hi

I had a loan with BOI some 6/7 years ago, this was being paid off until 2 years ago when I lost my job etc (wont bore you with the details). However there was an amount left on the loan. This defaulted and went to a 3rd party debt collection company which I couldn't pay. Fast forward two years I am now employed again, I have paid off the loan today in full. Can anyone tell me how this will realistically affect myself going for a mortgage. If I am in full time employment and saving for a mortgage, do I basically have no hope except wait the 5 years until credit rating goes neutral again? Any help with explanations of credit ratings, applying for mortgages etc would be a huge help.

Thanks

TrishSimon

worriedparent wrote: »

Hi

I had a loan with BOI some 6/7 years ago, this was being paid off until 2 years ago when I lost my job etc (wont bore you with the details). However there was an amount left on the loan. This defaulted and went to a 3rd party debt collection company which I couldn't pay. Fast forward two years I am now employed again, I have paid off the loan today in full. Can anyone tell me how this will realistically affect myself going for a mortgage. If I am in full time employment and saving for a mortgage, do I basically have no hope except wait the 5 years until credit rating goes neutral again? Any help with explanations of credit ratings, applying for mortgages etc would be a huge help.

Thanks

The first thing you need to do is order a report on yourself from the ICB its € 6.00 and it will tell you exactly what your credit rating is like as its what all lenders see anyway.
The report only shows the past 24 months so if you have as you say paid off the loan today as of today's date then it will be 2 years before it will be cleared down off the report hence prob giving you not a great report but don't worry just get the report first and see whats on it then go get some advice from a bank / broker.

Go to www.icb.ie and order the report and take it from there.
If you have to save more for a house then possibly it might take another 2 years to get a full deposit and by that time the 24 months will be up and you can apply for a mortgage.

Exactly what date did you pay off the loan?
My husband missed one payment on a loan in May 2013 he paid it off straight away but it was still reported to the ICB and we were told we have to wait until May 2015 to re apply for a mortgage if you get me.

Trish56

The loan will show on the ICB for 5 years from the date it was paid off.

Spudzrus87

TrishSimon wrote: »

The first thing you need to do is order a report on yourself from the ICB its € 6.00 and it will tell you exactly what your credit rating is like as its what all lenders see anyway.
The report only shows the past 24 months so if you have as you say paid off the loan today as of today's date then it will be 2 years before it will be cleared down off the report hence prob giving you not a great report but don't worry just get the report first and see whats on it then go get some advice from a bank / broker.

Go to and order the report and take it from there.
If you have to save more for a house then possibly it might take another 2 years to get a full deposit and by that time the 24 months will be up and you can apply for a mortgage.

Exactly what date did you pay off the loan?
My husband missed one payment on a loan in May 2013 he paid it off straight away but it was still reported to the ICB and we were told we have to wait until May 2015 to re apply for a mortgage if you get me.

2 Years? Are you sure this is the case? I am in a similar situation to the OP just with a much more minor credit card default for a few hundred euro

ANXIOUS

It's five years from date paid off.