Does having a credit card in Ireland help build your credit rating?

GazzaL

Straightforward question! Does having a credit card in Ireland help build your credit rating?

Would banks look favourably on someone applying for a mortgage who has access to a credit facility like this but who either clears it every month or doesn't use it?

Bubbaclaus

No such thing as a credit rating in Ireland.

Darc19

That may have been the case years ago but I doubt it now.

I've never had a personal credit card nor a car loan and never had an issue getting a mortgage.

I did have an Amex card until they withdrew from Ireland. - it was always great for travel / hotel / car rental, but automatically took payment every month. No option for credit.

There's so much more for banks to check these days.

GazzaL

Bubbaclaus wrote: »

No such thing as a credit rating in Ireland.

So having a credit card is basically a waste of money if you don't use it as it will have no impact on how a bank will look at your credit worthiness for a mortgage?

Darc19

GazzaL wrote: »

So having a credit card is basically a waste of money if you don't use it as it will have no impact on how a bank will look at your credit worthiness for a mortgage?

Correct.

They will look at your transactions on your bank account.

If you have payments to bookmakers, it a black mark. Similarly reckless spending on nights out.

They build up a picture of you, add it to other info and churn out the result.

GazzaL

Darc19 wrote: »

Correct.

They will look at your transactions on your bank account.

If you have payments to bookmakers, it a black mark. Similarly reckless spending on nights out.

They build up a picture of you, add it to other info and churn out the result.

That's perfect, thanks for that. I think in England it can help but I know it's different over there!

pipelaser

Darc19 wrote: »

Correct.

They will look at your transactions on your bank account.

If you have payments to bookmakers, it a black mark. Similarly reckless spending on nights out.

They build up a picture of you, add it to other info and churn out the result.

I've lived in the UK over the last ten years, and the credit rating system here is crazy.
When I moved over from Ireland first, I tried to open a bank account deposit and £20,000.
Multiple banks wouldn't have me, because you automatically start off with a poor credit rating.
The only bank that would take me on, to allow me use a current account! gave me the equivalent of a bank card that you would give to a 13 year old.

I lived in shared houses, and paid bill's in cash to housemates, all the while not knowing that I wasnt building a positive credit rating.

I remember going to buy a phone, for cash, but they wouldn't let me even have a contract because of a low credit rating. Had to basically pay a retainer of £250 to offset the bill's.

Took me years to eventually be even allowed have a bill! Ironically, the only way to build High rating, was to have a good history of paying bills.

The main pitfalls, that will lower your rating are:
Being rejected for bank account application
Moving address
Withdrawing cash with a credit card
Living at a property that has previously had Unpaid bills associated with it!
Late payments on any Bill's
Never having a loan
Not having a history in said country

Hopefully wont come into force in Ireland, such an unfair system

Darc19

It wasn't like that in the 90's but it did start to change mid 90's

I moved to the uk in early 90's, provided copies of irish bank statements and opened account and got a mortgage (local building society) before officially moving over.

I was transferring for work purposes and staying with same company, so had job security.

No problem opening bank account, just asked local irish pub landlord who to go to - there was always a friendly Irish person in one of the banks that knew the shortcuts

Geuze

GazzaL wrote: »

Straightforward question! Does having a credit card in Ireland help build your credit rating?

Would banks look favourably on someone applying for a mortgage who has access to a credit facility like this but who either clears it every month or doesn't use it?

The answer is no.

What banks look favourably on is a record of regular saving.

irishgrover

here is a page from the ICB giving details on Credit reports, ratings, scores etc in Ireland
http://www.icb.ie/credit_rating.php

Sheep_shear

pipelaser wrote: »

I've lived in the UK over the last ten years, and the credit rating system here is crazy.

I have had the opposite experience. I was a bit wise to the credit rating system. Had no hassle getting a low-ish amount credit card which I used all the time for everything, made sure to be on the electoral register and apart from that didn't do anything special.

The only thing that I accept will screw you initially is the lack of a few years off addresses. Even when your score is great, you'll have to explain that one (within your three years of moving here). Still I had no problem getting a car loan within a not too long time frame from landing.

Looking on it now, seems mad that Ireland doesn't have something similar.

Ogham

Mr.S wrote: »

While we don't have a credit rating system, is it true that banks like to see you can be 'trusted' with credit? eg paying your CC in full each month? I've never had it said to me, but you often hear people say that their mortgage advisor told them this.

We do have a credit rating system here (2 in fact) . One is operated by the Central Bank (Central Credit Register) and the other by the Irish Credit Bureau.
The "officail" one definitely includes credit card info - so having one and paying it off on time will help your credit rating.
All lenders are obliged to check the Central Credit Register - so it is important.

Plenty of info here on it

https://www.citizensinformation.ie/en/money_and_tax/personal_finance/loans_and_credit/your_credit_history.html

and here
http://www.moneyguideireland.com/how-to-check-your-credit-rating-in-ireland.html

Bubbaclaus

Ogham wrote: »

We do have a credit rating system here (2 in fact) . One is operated by the Central Bank (Central Credit Register) and the other by the Irish Credit Bureau.
The "officail" one definitely includes credit card info - so having one and paying it off on time will help your credit rating.
All lenders are obliged to check the Central Credit Register - so it is important.

Plenty of info here on it

https://www.citizensinformation.ie/en/money_and_tax/personal_finance/loans_and_credit/your_credit_history.html

and here
http://www.moneyguideireland.com/how-to-check-your-credit-rating-in-ireland.html

Ok, so where do you get your rating and what is the max and minimum rating in this Irish rating system that apparently exists as you say?

Ogham

Bubbaclaus wrote: »

Ok, so where do you get your rating and what is the max and minimum rating in this Irish rating system that apparently exists as you say?

http://www.icb.ie/credit_rating.php

Point 13 onwards.

ted1

Bubbaclaus wrote: »

No such thing as a credit rating in Ireland.

Not quite true

http://www.icb.ie/credit_rating.php

coylemj

GazzaL wrote: »

Would banks look favourably on someone applying for a mortgage who has access to a credit facility like this but who either clears it every month or doesn't use it?

If you want a positive mark on your credit record, take out a bank loan and pay it back in full and on time. That will show on your credit record for all to see.

Having a credit card and clearing the balance every month might help but probably only with the issuing bank i.e. it might be helpful if you are applying for a mortgage from the same bank as issued the card.

It sounds like you really don't need a credit card, in which case my advice would be not to bother getting one. Because there is a potential downside in that if you forget to pay the minimum balance once or twice, your own bank will consider it as a negative.

irishgrover

I ordered a copy of my credit report (as per my own previous post #14) It arrived yesterday - it's free, plenty of information on it re mortgage, credit cards, CU loans etc

Conall Cernach

I always wondered why there are so many advertisements for different credit rating apps on UK tv that you don't see on Irish tv. Now I know.

irishgrover

Conall Cernach wrote: »

I always wondered why there are so many advertisements for different credit rating apps on UK tv that you don't see on Irish tv. Now I know.

I always thought it was a great example of all the is worst with capitalism (in the states and UK anyway)...

Finance companies (eg equifax) create a product (credit rating), based on your own data, make it a default necessity to use the product to get other products (loans) and then sell supplemental products and subscription services for €20 per month to allow you to access data about yourself....

Sheep_shear

irishgrover wrote: »

I always thought it was a great example of all the is worst with capitalism (in the states and UK anyway)...

Finance companies (eg equifax) create a product (credit rating), based on your own data, make it a default necessity to use the product to get other products (loans) and then sell supplemental products and subscription services for €20 per month to allow you to access data about yourself....

I've never had to pay for access. I get a monthly (I think, maybe bimonthly) newsletter inviting me to check in on my updated score. If I log in, I get a break down on all the data and can then see which loans/CC etc I could get and percentage chances of getting said items. Twenty quid per month? Yeah right.