late payments on car loan

M

mollyom

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Hi,have been reading some posts and becoming more and more worried.Story is ,boyfriend has car loan of 4,000 and has been late by one week on one payment and nearly four weeks on another.I am hopping mad as we are about to apply for a mortgage and am now thinking we probably won't get one because of these late payments,those anyone have any idea how this will affect our application?We do have the option of paying off the loan in full if that will help his credit rating, GRRRR...
 
mollyom said:
We do have the option of paying off the loan in full if that will help his credit rating
Click to expand...
Not too sure on how late payments that were made at a later date will be treated.... I'd guess a missed payment is a missed payment but hopefully someone with experience of this can clarify one way or another.

If you are in a position to clear the loan this would improve the ammount available (should this be an issue) to you with most lenders, no matter what the credit history it could be of benefit.
(The loan will also have a relatively high interest rate so clearing it now would probably be financialy beneficial in the long run).
 
Late payments would show on an ICB but as there was just two and the payments were just late as opposed to missed it may not cause too much of a problem, unless maybe you are looking for a 100% mortgage as their criteria is quite strict. The lender may just look for an explanation for the late payments but if you can provide a reasonable one things should be ok.

Clearing the loan may make your case stronger but your credit rating will remain the same.
 
Don't panic yet.

Contact the ICB (Irish Credit Bureau) and get a copy of your BF's Credit Report.

Download and print out [broken link removed] from the ICB.

Fill it in and post it off with a payment of €6.00 (Postal Order or Bank Draft).

More info [broken link removed].
 
mollyom said:
Hi,have been reading some posts and becoming more and more worried.Story is ,boyfriend has car loan of 4,000 and has been late by one week on one payment and nearly four weeks on another.I am hopping mad as we are about to apply for a mortgage and am now thinking we probably won't get one because of these late payments,those anyone have any idea how this will affect our application?We do have the option of paying off the loan in full if that will help his credit rating, GRRRR...
Click to expand...

I don't think I'd buy anything on credit with somebody who cannot pay their car payments on time.

It might not eliminate you from getting a mortgage, but think about the consequences if he starts not giving you his share of the mortgage on time . . .
 
Thanks everyone for your replies,think I will contact ICB,see whats on file.I know what you mean Iff12,however it's more a case of him not being organised at all,rather than not being able to pay,thanks for your advice.
 
Hi

Much the same thing happened to me recently - my loan was student loan just under five years ago - it was a five year loan which I repaid in 2 years but I missed the last three payments. I went for 100% loan with EBS and they put me through hell over it - just have a good explanation as to why he missed the payments even if it's not true. The ICB will have missed payments on record but even if they don't - you will have to submit your last 6 months bank statements and these will show missed direct debits. EBS eventually accepted my explanation but they do like to make you sweat so be prepared!!

Best of luck with everything
 
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