missed DD and credit rating

fire_man

I have a DD set up from my debit card .I hadn't the funds to meet payment .Will this affect my credit rating?It doesn't happen me often.

fire_man

It is for a sky subscription.

fire_man

Thanks, it's not a regular thing so hopefully won't be an issue if applying for loan.

Liam D Ferguson

fire_man wrote: »

Thanks, it's not a regular thing so hopefully won't be an issue if applying for loan.

It depends on the type of loan you're thinking about applying for. If it's a mortgage, then most banks look for at least 6 months' current account statements as part of the application and if there's a couple of bounced Direct Debits during that period it can cause a problem. So the trick is to really look after your current account for 6 months before applying for a mortgage.

If it's a smaller loan, the lender might not ask for current account statements at all. But if you're applying to the same bank that has your current account, they'll see it anyway.

fire_man

Thanks,I might be looking for mortgage down the road and have a small overdraft on current account.Should I clear this up?

micks_address

fire_man wrote: »

Thanks,I might be looking for mortgage down the road and have a small overdraft on current account.Should I clear this up?

Mortgages or loans probably would look back six months max

leakyboots

Quick question along those lines - I've had money on my credit card for a few years, I've just been making small repayments (usually a bit above the monthly requirement). Every now and then I get the balance down and then something comes up and I end up using it and I'm back to square one.

Is this bad in the light or possibly going for a mortgage in a few years?

Henry Ford III

leakyboots wrote: »

Quick question along those lines - I've had money on my credit card for a few years, I've just been making small repayments (usually a bit above the monthly requirement). Every now and then I get the balance down and then something comes up and I end up using it and I'm back to square one.

Is this bad in the light or possibly going for a mortgage in a few years?

As long as you are paying more than the minimum every month it's fine.



p.s. Your CC provider will love you. The rates being charged are pretty high.

coylemj

fire_man wrote: »

Thanks,I might be looking for mortgage down the road and have a small overdraft on current account.Should I clear this up?

Not sure about the other banks but Bank of Ireland told me a long time ago that they like people with an overdraft facility to get back into the black at least once per quarter.

This would be totally an issue between you and your bank, as long as you stay inside the authorised limit then there is no reason why there should be any negative reference to it on your credit record.

On your orignal query about a bounced DD, nobody has mentioned the fact that this normally incurs a penalty. Bank of Ireland have this item listed in their current schedule of fees .....

Unpaid Items

Cheque or direct debit (includes SEPA direct debit) returned unpaid from your account (out) €12.70

'Out' means the money was supposed to be paid out of your account. So if you write a cheque to a third party and it bounces, or if a third party submits a DD to your account and your own bank rejects it, you get fined €12.70 each time.