Hi there!
I have a payment default (cr card) on my credit history. I have since budgeted to pay it off as soon as I can. I have cut the card up and resolved to never again fall foul!! [evil5]
My questions is, would I still be able to get finance for investment property? If so, at what interest rates and fees?
Or do I have to wait until its been fully paid before financing.
Retire40,
How much are we talking about?
Is your agreement with the financial institution that issued the CC in writing and implemented?
The amount was $5K. This is no excuse but I was in the middle of arrange a personal loan to pay it off when delays caused me to past the 60 days due date. [ohno]
Anyways, I don’t have a written instalment plan with the financial provider as yet. I was going to just budget myself and stick to a strict payment plan.
Would it be better if I arranged for a formal instalment plan?
The reason I ask is that some lenders ignore default payments under $500 if they are paid, although they sometimes need to be at least 6 months old.
With an outstanding debt, I think you will find it difficult. The MB’s on this site can confirm that a non-conforming lender may be able to assist. Although I would have thought, you would need to have paid the debt off (?)
Otherwise I would go back to the bank and try and explain, cajole, sob (cry if you need to) what had happened. Maybe a hardship story and that you will enter into an agreement with them to pay off the debt, and endeavour to have them wipe this off your credit history….
Not sure if anyone else has done the same thing and what their success was?
Yes it will be hard for normal loan with a large default like that. It will depend on:
-the reason
-how long ago it was
-how soon you paid off etcTerryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I should add, that you would be able to get finance, but just may have to pay a slightly higher interest rate – around 8.85% with one non conforming lender (HLP) at 80% LVR.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks for everyone’s input!
I am currently negotiating with the c/c provider to have the default removed. Worth a try… [biggrin]
Anyways, its good to hear that at least I’ve still got a way to start in property. Even if it is at a higher interest rate.
Goto http://www.baycorp.com.au and order your own personal credit file.
you may not have even been listed. if not you have nothing to worry about just pay it. if so then you have small hurdles to get over before investing.
Byronent
Adelaide SA
You must be logged in to reply to this topic. If you don't have an account, you can register here.
