When banks do a credit check on mortgage applicant, do they consider credit card?

J

jellybaby

Guest
Hi there,

When banks are doing a credit check when you're applying for a mortgage, do they consider your credit card? For example, if you had alot on your credit card, could this hinder it, or do they only take into account any loans you've had over the last 5 years?

Thanks a mil
 
Re: Credit check

jellybaby said:
When banks are doing a credit check when you're applying for a mortgage, do they consider your credit card? For example, if you had alot on your credit card, could this hinder it, or do they only take into account any loans you've had over the last 5 years?
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Having "alot" on your Credit Card will not hinder your chances of getting a mortgage (but will the potential mortgage amount). Missed payments on a CC would. As long as you continually make your minimum payments and eventually clear the debt it shouldn't cause you any problems when applying for a mortgage.

Having an outstanding CC debt would reduce your potential mortgage amount. It's considered in the same way as an outstanding loan amount and part of your outgoings.

Missed payments (whether it be on loans, CCs, *[correction on "household bills" - not included] etc.) will appear on your credit check through the ICB and (depending on how the body involved process the credit risk from the information given) could cause you problems further down the line as a "high risk" (different bodies have different ways of running the information recieved through the ICB so even then trying different institutions can yield very different results).

Edit: Correction on inclusion of HH bills on ICB report.
 
Hi there Satanta,

Are you sure about the missed payments for household bills showing up on the ICB credit check? Won't this only show up if you pay those bills by DD through your bank and then they, the missed payments on household bills, in turn generate referral fees which you can see on your bank statements?

As far as I know if you pay HH bills by cash your missed payments wont show up as the ICB don't obtain info on customers payment histories from utility companies.

rgds
 
ICB credit checks are far more limited than you would expect. Unless matters have changed very recently missed repayments on retail bank borrowings are not reported to the ICB nor is credit card debt. Generally the ICB covers leasing and HP debt.

Again I am speaking on info up to app 2 years ago. Things may have changed so if anybody has more up to date info feel free to correct.
 
MBNA refers ALL their credit card accounts to the Irish Credit Bureau, showing if you have missed payments or are up to date .. hope that helps
 
Apollo said:
Are you sure about the missed payments for household bills showing up on the ICB credit check?
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I wasn't sure at all. I did flick through the ICB details before and seeing "Bord Gais Finance" I had assumed that the other utilities were contained in there under various other titles ("The Associates" or "Everyday Finance" for example).

Never looked into it until just now but appears I was off the mark.

*Correction = HH bills are not considered on your ICB report.


Back to the OP, from the Oasis details on the ICB...
Oasis said:
Credit cards and credit history

From July 2004, credit card companies have the option of supplying more information on credit card repayments to the ICB. In the past, information was mainly supplied by the lenders only where credit cards were revoked or cancelled. Now lenders have the option of supplying full information regarding opening and closing balances to the ICB. Your card repayment performance will be measured by the ICB on a monthly basis but due to the nature of credit cards, you will also receive an additional 30 days before negative information about your record is recorded.
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This shows the details that the lender will have on your current CC situation.
 
You can always pay the ICB to get your own extraction of what they have on file if you are worried.

If its wrong - and I cant say how often - but if mistakes have happened in your account, dont be so sure that they get cleaned up.
 
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