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getting a mortgage, do welcome finance and citi financial loans affect my chances ??


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Hi guys,

 

Got myself into a sticky situation when going thru a divorce.. took out an unsecured loan with Welcome then six months later another one with Citi financial...have NEVER missed a paymnet with them:roll: These loans will be paid off in Jan and June next year. After that time i will be looking to apply for a mortgage, my credit rating is not good.....in fact its hellish....got myself in a total mess though am now sorting myself out. Will having loans with these companies affect my credit rating ..? Someone said it would....:???:

 

Any advice very welcome !!!:confused:

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If you have not defaulted then it should make little direct difference to your credit rating.

 

However, responsible credit grantors do not like to see individuals over stretching themselves from an affordability perspective, i.e. whether you can afford to keep up with your monthly payments on the loans and the mortgage.

 

You should obtain a copy of your credit report from Experian or:

Online Credit Reports and Credit Reporting from a Leading Credit Agency: Equifax

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If by the time you apply for a mortgage you will have paid off both loans with

no payments missed, it should strenghten your chances of getting a mortgage.

You don't say why your rating is not good so I presume you have other things

where payments were missed for example? If so, those will stay on your credit

file for six years and may affect your mortgage. Although it will be a plus that

your more recent history is very good-especially if you were paying them at

a higher rate because of previous history.

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