Ex- Credit Analyst - Throw your Credit & Underwriting Q's at me.

SirSaverOBE

URGENT MORTGAGE QUESTION

When you apply for a mortage, is it generally true that debts that are due to be cleared in the next 6 months are not taken into account?

Also - if I have debts (which I do!) but am not paying a pension at the moment, will that help as it will not be part of my outgoings? I was hoping my not paying a pension right now would off-set my personal loan payment.

Any advice gratefully received!

Sir Saver

Alan_C_2

My sister in law has a large amount of debt on two cards (approx 9,000). She is paying a horrendous amount of interest (19%) on these. Is there an easy way of transferring the debt to other cards/loans, seeing that she is now out of work, in order to reduce the interest rate she has now.

~evanesco~

I've got a quick Q for you Mike.

I had an administration order, which to obtain I had to have a CCJ. That was in Oct 2002. Last Oct (2006) the Judge deemed it settled, would the CCJ still remain on my file? I have been doing some damage limitation (and damage casuing:rolleyes:) in the meantime. I've got a couple of catalogues, a CC and a mobile phone contract. I know that I have only missed 1 payment on 2 of these, should my credit file be repairing itself? However, I have recently been rejected for a lower APR CC, so that's damaging, right? I only want it repaired for piece of mind, not so I can go destroying it again, I'm well and truely a DFW.

Evans. xox

Aj_eye

Alan C

CCA don't really care how the money is paid back ...As long as your sis already has the CC and isn't applying for a new one she should be able to transfer without a problem.

emms_mum

Hi Mike,

First I'd like to say that I think it 's really great of you to offer advice in this way. :T

My question, if you can help, is this ; I have quite a lot of debt on credit cards, which is just about manageable for me at the moment, as I transfer the balances where possible to maintain an overall low-ish interest rate. Regarding my credit rating, I wondered if it's worthwhile reducing the credit limits on the Fixed-for-life-of-balance-cards I have so I have less credit available in total- would this improve my credit score for when I need to apply for another card? Also, does it improve the credit score to cancel cards which have a zero balance? I don't think my credit score is particularly bad but I'd like to optimise it! Many thanks

hathor

Bit embarrassed to ask this, as it's a really dim question, but where else will I get a chance to ask an expert without blushing?

What exactly is a default? I sort of assumed it was an unpaid debt that looked like the person had no intention of paying (the moonlight flit scenario, if you like).

I almost always pay the full balance of my credit card bill each month, but sometimes - mainly due to moving around the country with my job & not always logging on to view my bill online (because I'm not at home to receive a paper one) or forgetting that online banking payments take forever to clear, I have paid the bill a few days late.

I recognise that this means I pay interest, and penalty charges, but is this kind of "oversight" late payment also called a default?

If so, I guess it would affect my credit score if I wanted a mortgage, wouldn't it?

Mike_St_Helens

:eek: :eek:

I truly had no idea this thread had surfaced again...

I shall go through the last questions this weekend and promise to get back to everyone who needs somethng.

Mike

Georgecarol

Hi Mike
Great thread. I have what may seem like a silly question, not sure. I'm trying to find out info for someone and as I've never had a credit card, I've been trawling this site and haven't come up with the answer. For the 6 year rule to apply on a debt, when does that 6 years start? Is it the date the card is issued, the date of the last payment, or is there a default date other than that? If it's a default date, how does she find out what that date is????

SirSaverOBE

Hello, Mike.

I have only been an MSE member for a couple of months but wondered if you could help.

My wife and I want to apply for a mortgage in the next 2-3 months. She has a totally clean file but I have debts as shown in my signature. I pay the CCs and loan off at £500 between them per month.

With our combined salary, and with my debts (excluding overdrafts) I have had quotes of £150-160k for a mortgage.

First question: Do the lenders take authorised overdrafts into account as credit commitments? If so, how?

Also - I have a few missed payments to Orange on my file just over a year ago. Are these going to hurt much? Can you offer any advice?

Best wishes,

Sir Saver

Mike_St_Helens

Aj_eye wrote: »

Hi Mike,

Here's one for you...

As you can see from my signature., I owe over £8000 on a CC, now assuming I remain in work I'll be able to afford to pay this (over the next 2 years).

But my question is as I am self employed (and the money I earn isn't regular) can I call up the CC company and come to some arrangement where they'll write off some of the debt if I agree to pay it off in a shorter time period.

What are the chances of this being successfull and how much do you think they will write off?

cheers
AJ_eye

The only way that you would be able to come to any type of arrangement is if you are in serious arrears with the agreement. This will most definatley also affect your credit file for 6+ years, so if its up to date, I seriously wouldnt recommend it. If you are heavily in arrears with the CC then there is no harm in asking for a short settlement, but they generally do want it in a very short amount of time, and will only write off say 50% of the balance.

Mike