Will I have trouble?

C

Corkgirl45

Guest
Hi

I have a credit card at the moment, which I'm trying to pay off. It was cancelled as I was unable to pay anything off it for a while as I was on maternity leave and not being paid. I have been making a the minimum payment on it every month for at least a year. I also have a car loan, which is paid on time every month (never late). I also had a personal loan which was finished last month. This was always paid on time also and it was for 5 years. We (DH and I currently) have a house and the mortgage is very low and paid every month. My name is not on this mortgage. Only his.
We have put a deposit on a bigger house, and we need to add about 130,000 on to the mortgage and make it a joint one, this would make it 180,000. our joint earnings are 80,000 per year.

But now i'm worried that because of the credit card we will be refused.

Can anybody tell me what they think our chances are?

Corkgirl45
 

Did you cancel the card (no problem) or they cancel card (could be a problem) ?
 
Hi


They cancelled it unfortunatley. They weren't interested in the sob story.

Corkgirl45
 
Hi CorkGirl,

If a Credit Card company cancelled your card, this will probably appear on the Irish Credit Bureau report against your name and could well cause you trouble getting a mortgage, especially as the outstanding balance has not yet been cleared.

Could you look at getting the new mortgage in your husband's name only? (Does his income qualify him alone for €180,000?)

If not, your best bet is to talk to the lenders where you have a good record (mortgage lender or car/personal loan lenders) being completely upfront with them about the credit card problem and pointing out your good lending record with them.

If that fails, you could try a lender that specialises in mortgages for people with credit problems, like [broken link removed] or Start Mortgages, but be warned they tend to be dearer than the more conventional mortgage lenders. There are previous topics here on Askaboutmoney about these lenders.
 
If you have an outstanding balance on the credit card and are just making minimum payments on it each month it would also be sound financial sense to try to convert this to a personal loan with a lower interest rate, to get your finances in order. I'm sure the lender with whom you just finished the last personal loan would be happy to do this and it would safe you a lot of money. Borrowing on a credit card is very expensive, over 20% APR compared to a personal loan of approx 10% APR.
 
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