Why has my credit card made credit score worse?
sarahlou29xxx
Posts: 67 Forumite
in Credit cards
Basically I have a aqua card with £950 credit which I pay in full every month.
Last month on eligibility checker I was 95% chance for mbna card now this month in 0%
Nothing bad on credit report no ccjs or defaults.
The only thing is my credit card is showing £880 balance and my limit is only £950.
Could this be why it's affected it?
I pay it in full monthly and it goes back to £0
I don't understand why it's so disheartening.
I use it to book hotels and trains for work and it's handy but seems to be killing my credit score.
My noodle is 1/5 poor
Last month on eligibility checker I was 95% chance for mbna card now this month in 0%
Nothing bad on credit report no ccjs or defaults.
The only thing is my credit card is showing £880 balance and my limit is only £950.
Could this be why it's affected it?
I pay it in full monthly and it goes back to £0
I don't understand why it's so disheartening.
I use it to book hotels and trains for work and it's handy but seems to be killing my credit score.
My noodle is 1/5 poor
0
Comments
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What other debts do you have?0
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Whose 'eligibility checker' is it?sarahlou29xxx wrote: »Basically I have a aqua card with £950 credit which I pay in full every month.
Last month on eligibility checker I was 95% chance for mbna card now this month in 0%
Nothing bad on credit report no ccjs or defaults.
The only thing is my credit card is showing £880 balance and my limit is only £950.
Could this be why it's affected it?
I pay it in full monthly and it goes back to £0
I don't understand why it's so disheartening.
I use it to book hotels and trains for work and it's handy but seems to be killing my credit score.
My noodle is 1/5 poor
If aqua is your only line of credit, then the useless CRA's score can possibly go up and down with your utilisation ratio that is currently high: 880/950=93%. I think most reasonalbe lenders will simply ignore it because both the balance and the limit are very small.0 -
That is the only debt I have.
Two weeks ago I did the mbna eligibility and it brought up two cards I was able to apply for I did it today and they said I couldn't apply for any.
Also the money saving expert said I had 10% chance for lots of cards where a month ago was 95% and 80% chance of acceptance.
I pay in full and on time
I pay my electricity /water bills on time.
I don't get it.0 -
does Noddle have any other setting than 1?
OP, have you checked Experian?0 -
sarahlou29xxx wrote: »That is the only debt I have.
Two weeks ago I did the mbna eligibility and it brought up two cards I was able to apply for I did it today and they said I couldn't apply for any.
Also the money saving expert said I had 10% chance for lots of cards where a month ago was 95% and 80% chance of acceptance.
I pay in full and on time
I pay my electricity /water bills on time.
I don't get it.
It might be due to high credit utilisation.
But as grumbler has said, they may disregard it as ultimately it's a fairly insignificant sum and as you pay it off in full they can see that it isn't someone who is struggling.
The checkers may not have access to this information.
Worst case is you get declined and you have another chance, try with someone else and (maybe) get rejected. Then just wait another six months and try again.
Apply and (maybe) get rejected or don't apply and (definitely) get rejected (by yourself.)0 -
I'd guess that you are on a low income and being close to your credit limit is counting against you, maybe you don't have a long enough history of managing a CC to have a positive effect (yet). But why does it matter? If you've only just got a CC why do you need another one so soon? I think you are over-obsessing about you credit score / rating.loose does not rhyme with choose but lose does and is the word you meant to write.0
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does Noddle have any other setting than 1?
OP, have you checked Experian?
I have had 5 (before I got my BT card and car on finance), just logged in for the first time in a while, currently 4/5. They have also given me a score of 613 which is new! Somewhere just below good which is amusing as I have no missed payments and could cover all my debts, including the car PCP (0%) with cash so hey ho.0 -
It should be reiterated that the scores mean very little to anyone, and aren't really reflective of what conclusion companies are likely to draw up.
By using your credit card and paying it in full, and by being registered on the electoral roll, and a few other things, you will start to find higher credit limits becoming available to you, but all of this will take a while, and what your score shows can go up and down depending on your last statement balances as your credit utilisation ratio can go up or down, but like I said it means very little, as companies will make their own decision on whether or not you can pay, which will partly depend on your salary and history.
If you've had a card for over a year, and you've maxed it out every month but paid it off in full, you're likely to be seen as less of a risk than someone whose used part of their limit, but then only pays the minimum every month.0 -
sarahlou29xxx wrote: »Basically I have a aqua card with £950 credit which I pay in full every month.
Last month on eligibility checker I was 95% chance for mbna card now this month in 0%
Nothing bad on credit report no ccjs or defaults.
The only thing is my credit card is showing £880 balance and my limit is only £950.
Could this be why it's affected it?
I pay it in full monthly and it goes back to £0
I don't understand why it's so disheartening.
I use it to book hotels and trains for work and it's handy but seems to be killing my credit score.
My noodle is 1/5 poor
Noddle is exactly that, "Noodles." I had 3/5 when I had a couple of defaults. But since they started offering their credit score and how to improve it my score has dropped to 1/5 even though my accounts are now greener than green, i have several settled accounts including a loan and a perfect history. Maybe they want me to buy the new service to improve it: What do you think?0
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