Fixing Credit Rating

Jaybeen00

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This is my first post so let me thank everyone in advance for taking the time to read it.

In 2012 I took out a car loan (25k) from my Credit Union to buy a new car, a year later the company I worked for collapsed and as I was unable to find a new job my income came from social welfare for 20 months while I went back in to education. My loan went unpaid for those 20 months but I spoke to the CU, agreed with them that once I had the means I began paying it again (albeit lower payments due to low income) and I have been paying it since.

In 2017 having completed a degree at night I got a new job in a new sector and during these years I have raised through the ranks from being on a salary of 26k in 2017 to being on a salary of 80K in the last 12 months. I have continued to pay the loan and it is now down to 7k outstanding. The issue I have is that my credit report is still showing a loan with arrears of 20 months and this is severely impacting me being able to get any type of credit and will do so for 5 years after the loan is payed off. I have an old credit card and have always payed the balance every month but in the last month I have tried to get a loan to clear the CU loan and begin to rebuild my credit rating but am always refused, I have attempted to explain my situation to them and although I get alot of sympathy, when they check the central credit register, the computer says no so there is nothing they can do, and also I don't want to make any more applications that will result in a refusal as this will also leave a footprint on the credit report.

With rent and current living costs I should be able to clear the remaining balance in 18 months to 2 years. My credit rating will be better once the loan is paid off but the record will still show the arrears for 5 years and as someone who just turned 42 my chances of getting a mortgage will be completely shot . My questions is, is continuing to pay the loan my only course of action? Is there firms out there who would lend to me to clear the loan? Should I dedicate all additional cash in to clearing this loan, forgo any other savings etc until the loan is cleared?
 
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on a salary of 80K in the last 12 months.
With rent and current living costs I should be able to clear the remaining balance in 18 months to 2 years

You have a net salary of over €4k per month, with some small sacrifices you should be able to clear the loan easily in 3 or 4 months

Should I dedicate all additional cash in to clearing this loan, forgo any other savings etc until the loan is cleared?
Yes this is the only thing you should do. If you have any other savings then you should immediately use them to clear the loan.
 
Clear the loan as quickly as you can.
Once cleared build up your account with the same amount as the loan repayments too show your able too afford the repayments of a mortgage.
 
Hi @Jaybeen00, sorry for bringing up an old post, just curious how you got on with the above in the end. Did you manage to get mortgage approval? I came across your post above on here whilst looking for advice myself. Any advice? Thank you.
 
Hi @Jaybeen00, sorry for bringing up an old post, just curious how you got on with the above in the end. Did you manage to get mortgage approval? I came across your post above on here whilst looking for advice myself. Any advice? Thank you.

Hi,

Welcome to AAM.

Unfortunately Jaybeen00 has not been seen on AAM since August, '22 so may not get to see your post.

Perhaps some of these other previous AAM threads might be worth a read.
 
Hi Sunnydai,
From my experience the chance of getting credit is very minimal until the problem transactions drop off the CCR report, ie 5 years after the last payment.
If you want to give more details on your situation you may get more helpful responses.
 
Hi Savvy, thank you for your response.

I just tried to link my latest post with more details… it won’t let me post the link but perhaps you can see it if you click on my profile? I’d be interested to know your thought please..? Have you been in a similar situation? Thank you in advance for your time Savvy.
 
I just tried to link my latest post with more details…
You mean this?
 
Yes, thank you Clubman! Wouldn’t link for me for some reason..
As an anti-spam measure, new users are not allowed to put links in posts.
Likewise, you cannot quote a post with a link in it.
After a certain amount of time and/or number of posts you can post links.
 
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