You have to clear it all off and wait 6 months so that bank will know you won't be defaulting in the next few months. Some people might need to wait up to 1 year

Dear psyconutss,

1. CCRIS will hold max 1 year history, history more than that won't show in it. However, if you defaut certain loan with bank A, cleared off your debt, and apply loan with Bank A, they might still have your previous default data.

2. Let's say, if you have 1-2 arrears with your car loan and wish to apply loan right now this month, you can do so by settle the debt and get a settlement letter and apply mortgage loan. This is doable as arrears 1-2 still not that serious.

3. Lets say, if you have 6-8 arrears for your car loan, it is better for you to settle the debt and wait till next ccris update to clear off this debt. Because more than 2 arrears is terrible in the eye of the bank, eventhough you have settle the debt with settlement letter, 6-8 arrears still visible, bank will definitely take precautious.