Missed credit card payments can negatively affect your mortgage approval. This is because the repayment ability is rated low.
However, depending on the degree of delinquency or the financial institution, it may pass the examination. Let’s take a look at how to deal with missed payments.
①Confirm your credit information with a credit information agency
First, it is important to check your credit report.
For credit card inquiries, please contact CIC (Japan Credit Information Center) . For credit card delinquency information, it will be registered for 5 years after the payment is completed. Also make sure to check the expiration date.
② Obtain a certificate of completion
If you have experience with loans or cash advances but have paid off, prepare a certificate of payment. Proof of repayment can also work in favor of loan approval.
③Find financial institutions that are easy to pass the mortgage examination
The screening criteria differ depending on the financial institution. It is also a good idea to check financial institutions that are easy to pass the screening criteria and compare them.
④Apply for a mortgage after 5 years have passed since paying off
Credit card delinquencies remain as information for information agencies for about five years. It is also an effective method to wait for the next five years and wait for the credit to recover before proceeding to the examination.
(5) Consider refinancing the housing loan
There is also a method of first making a PHH mortgage that is easy to get, waiting for 5 years, and then switching to a mortgage with better conditions after the individual’s credit has recovered.
In this way, there is a countermeasure even if you forget to pay your credit card. When choosing a financial institution, there may be too much information and you may not know which bank is good.
If you feel that you are at your limit, it is a good idea to consult a financial professional who is familiar with mortgages. Instead of shallow generalizations, you should be able to get advice that fits your situation and be able to collect information efficiently.
