Credit card fraud before mortgage application

banzsolt

Hello,

I was following a lot of your tips for the past years and I managed to gather up enough money to put down for a deposit for a house. I am planning to gather for 2-3 more months so I have some extra cash leftover before spending a huge amount for the deposit but this weekend my creditcard got stolen and the fraudsters managed to take out 100 pounds cash from it (using my PIN) which I dont know how they were able to do...

I called my card issuer and they were saying they will investigate but it will still be on my record, but after finishing their investigation they will repay the 100 pounds as a fraud credit to my account.

I am a bit concerned that this will have n impact on my credit score, especially that it was cash from a credit card. Will this appear on my mortgage application credit check? what should I do in this case?

Thanks,
Zsolt

Amst

Most lenders would look poorly on cash advances from credit cards as it alludes to poor credit utilization however if your broker advises the lenders up front, and you are able to provide proof it was fraudulent, then I don't see any lenders declining an application on this alone.

What lenders don't like is anomalies with applications that they find but don't get answers for when asked as it implies they are being lied to.

Most problems are solvable with a reasonable explanation as most underwriters apply reasonability when assessing an application as a whole. You were unlucky enough to suffer from CC fraud - this shouldn't affect a normal lenders assessment of you being able to repay a secured loan over a set period of time.

Thrugelmir

banzsolt wrote: »

but this weekend my creditcard got stolen and the fraudsters managed to take out 100 pounds cash from it (using my PIN) which I dont know how they were able to do...

Sounds an inside job.

Shouldn't have a material bearing on your mortgage application.