CCR - Old debt cleared off, what next

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cb0591

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Hi All,

New to this space, so pardon any mistakes.

When I was young(er) and foolish, I left some debts in Ireland when I moved abroad (Credit Union Loan, Overdraft etc).

When I came back, I couldn't get credit so borrowed from one of the high interest lenders.

Long story short, I am debt free now. I have paid all my old debt in full and the high interest lenders were paid on time anyway.

My concern now is I plan to go for a mortgage with my partner in ~2years, however I know lenders can see last 5 years of some key indicators, such as past payments due, and this number for the debts I left when I moved away is very high. (Like 50!)

Does anyone know how this might play out? What can a lender actually see if the loan is closed off for the last 2 years?

I note this response here: www. oireachtas .ie /en/debates/question/2021-03-31/86/

However - it still seems to suggest that they will see the final 2 years prior to the loan being closed off. I paid them in full in installments so the past payments due would go 50, 45, 40 etc like that.

Anyway, its all very confusing. I know that in 5 years from November 2023 my report will be entirely clean. So I have that to fall back on but I would love to know what my chances are in lets say November 2025. (pending a deposit saved and neat current account)

Appreciate any guidance.
 
cb0591 said:
Hi All,

New to this space, so pardon any mistakes.

When I was young(er) and foolish, I left some debts in Ireland when I moved abroad (Credit Union Loan, Overdraft etc).

When I came back, I couldn't get credit so borrowed from one of the high interest lenders.

Long story short, I am debt free now. I have paid all my old debt in full and the high interest lenders were paid on time anyway.

My concern now is I plan to go for a mortgage with my partner in ~2years, however I know lenders can see last 5 years of some key indicators, such as past payments due, and this number for the debts I left when I moved away is very high. (Like 50!)

Does anyone know how this might play out? What can a lender actually see if the loan is closed off for the last 2 years?

I note this response here: www. oireachtas .ie /en/debates/question/2021-03-31/86/

However - it still seems to suggest that they will see the final 2 years prior to the loan being closed off. I paid them in full in installments so the past payments due would go 50, 45, 40 etc like that.

Anyway, its all very confusing. I know that in 5 years from November 2023 my report will be entirely clean. So I have that to fall back on but I would love to know what my chances are in lets say November 2025. (pending a deposit saved and neat current account)

Appreciate any guidance.
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I don't suppose you would do an article for one of the newspapers?

There are so many people who just leave the country and give two fingers to their lenders saying "catch me if you can".

And then they end up coming home and wanting to buy a house and find themselves in trouble.

I am not sure why such behaviour gets eliminated from a person's Credit Record. If someone tries to evade their debts once, they are much more likely to do it again. I don't accept "young and foolish" to be an excuse. So such defaults should be on the Credit Record permanently. Let the bank decide if they want to give a large mortgage to someone who is no longer "young and foolish".

Brendan
 
Hi Brendan,

Not too sure of your angle. People are young and foolish and may have many reasons for miscare of debt and money.

As I mentioned, I have paid all my debts in full. I have no active agreements on my report and all historical entries are paid in full, not agreed for lower amounts or anything else.

Additionally, I don't think these things are cleared anymore unless they are sorted out they will stay on the report. The only get removed 5 years after they are closed, not 5 years in general.

I'm more interested in getting a response to my questions and again, I'm unclear as to your angle.

Thanks
 
time to plan said:
Congratulations on paying off your debt. I would say first thing is to get a view of your
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Thanks, oh, I have. All the information above and in my other reply is from my report. I have no active credit agreements now and everything that's closed was paid in full. I am really concerned about the performance of these closed ones, specifically the ones that were years sitting there and have records of being 50 payments past due.
 
cb0591 said:
Thanks, oh, I have. All the information above and in my other reply is from my report. I have no active credit agreements now and everything that's closed was paid in full. I am really concerned about the performance of these closed ones, specifically the ones that were years sitting there and have records of being 50 payments past due.
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Then I would talk to a mortgage broker next and get an idea of how long you need to wait and what else you should be doing in the meantime (e.g. regular saving to demonstrate repayment capability).
 
cb0591 said:
Not too sure of your angle.
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Hi cb

A few angles

If I were a lender I would not lend to people with a history of irresponsibility. As a borrower, I don't want lenders to lend to such people as it pushes up the interest rates for responsible borrowers.

I think it's important to encourage people to behave responsibly so it would be great if you would tell your story to a journalist to encourage others who might be thinking of reneging on their debts, not to do so.

Brendan
 
Interested if anyone has feedback on my actual question(s).

I've worked hard to pay off my debts and interested if anyone understands the CCR from a lenders perspective for these scenarios.
 
cb0591 said:
Interested if anyone has feedback on my actual question(s).

I've worked hard to pay off my debts and interested if anyone understands the CCR from a lenders perspective for these scenarios.
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What the CCR say:

Retention of Information

Information for consumers about the Central Credit Register
www.centralcreditregister.ie www.centralcreditregister.ie

"On the credit report provided to lenders, only the most recent two years of detailed payment information is provided. Lenders will also see limited information on key repayment indicators within the last five years, for example the Maximum Number of Payment Past Due within the last five years of the contract’s history."
 
skrooge said:
What the CCR say:

Retention of Information

Information for consumers about the Central Credit Register
www.centralcreditregister.ie www.centralcreditregister.ie

"On the credit report provided to lenders, only the most recent two years of detailed payment information is provided. Lenders will also see limited information on key repayment indicators within the last five years, for example the Maximum Number of Payment Past Due within the last five years of the contract’s history."
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I was about to reply and say exactly this - and would like to add that you also might want to double check in 5 years time to ensure the record is correctly updated (BOI just stopped recording my repayments so I had to write to them & they correct the record). I did something similar: didn't intend not paying my repayments but things didn't work out with the move & ended up unemployed for 4 months, fell behind, by the time I was working there wasn't anything spare to catch up). That was in 2001, I ended up moving back to Ireland after 5 months of struggling hving realised I was no better off. Moved to a cheaper location in Ireland instead. I paid off every last cent + interest + surcharges within 2-3 years.

I'm not going to give you good news because even at peak Celtic tiger hubris 2 years later by the time I'd paid almost everything off it was very difficult to get credit. So I would imagine it would be far more difficult now with fewer lenders in the market. In the meantime keep good records, set up a good savings habit & check your record as thing can & do change. But do bear in mind that a considerable part in the housing crisis has been due to the fact that a very considerable % of the population who historically would have qualified for home loans have not been able to find lenders for a very long time now.
 
cb0591 said:
Interested if anyone has feedback on my actual question(s).

I've worked hard to pay off my debts and interested if anyone understands the CCR from a lenders perspective for these scenarios.
Click to expand...
They keep the last 2 years of the debt and indicate whether or not a payment was missed.
They also will record how much is outstanding so if repayments were late but the debt was recovered in full they will record the outstanding debt as zero. But it will still be visible that you didn't repay X of the last 24 payments on time, whatever X is.
Lenders generally will take this into account in their credit scoring process & it is fair to say its not going to help your case.

I realise you were probably hoping that they would show the instalments you had paid after you came to arrangements with the lender - unfortunately that is not what other lenders see - all they will see is whether or not you repaid the original loan on the original terms and whether or not it was actually paid off in full. (That is for non mortgage credit, at least - I realise that there might be caveats and special circumstances for mortgage debts that might differ).
 
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