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    • Fabulouso
    • By Fabulouso 12th Mar 17, 11:04 AM
    • 98Posts
    • 16Thanks
    Fabulouso
    Trying to build credit rating but score went down?
    • #1
    • 12th Mar 17, 11:04 AM
    Trying to build credit rating but score went down? 12th Mar 17 at 11:04 AM
    Hello,

    I am trying to build my credit rating. I have a charging order that is due to be removed 2019 so am trying to build the rating to coincide with then.
    I got an aqua card, and was given the max limit of 1200. I since got an email from my credit reference account to say my rating had gone down 15 points. I don't get it?? I haven't missed any payments of anything. I haven't used to card though, so could that be it?
    Thankyou in advance x
Page 1
    • Chappaz
    • By Chappaz 12th Mar 17, 11:07 AM
    • 130 Posts
    • 56 Thanks
    Chappaz
    • #2
    • 12th Mar 17, 11:07 AM
    • #2
    • 12th Mar 17, 11:07 AM
    The credit score means nothing. It's an extremely rough guide. Only you and the agency can see it. Lenders can't.

    But the reason will be that, when you applied, Aqua would have carried out a hard search on your credit file, and searches like this tend to dip your score by a few points.

    Having a credit card will do nothing positive for your score. You have to use it. This path will always result in an initial dip in your score, but then it will gradually start increasing over the next 6-12 months.
    • Fabulouso
    • By Fabulouso 12th Mar 17, 11:32 AM
    • 98 Posts
    • 16 Thanks
    Fabulouso
    • #3
    • 12th Mar 17, 11:32 AM
    • #3
    • 12th Mar 17, 11:32 AM
    Thankyou!

    What's the best way to use it? Small purchase each month and pay it off once I get my statement?
    X
    • ForeverAwake
    • By ForeverAwake 12th Mar 17, 11:45 AM
    • 21 Posts
    • 4 Thanks
    ForeverAwake
    • #4
    • 12th Mar 17, 11:45 AM
    • #4
    • 12th Mar 17, 11:45 AM
    Ignore the "score".

    Instead, focus on:

    - Paying on time

    - Keeping your debts low

    - Applying for credit only as needed

    - Keep your oldest accounts active

    - Try eligibility checkers before making any applications

    Give it 6 months and see where you are, you may be able to apply for Prime cards with confidence then
    • 20aday
    • By 20aday 12th Mar 17, 11:46 AM
    • 1,978 Posts
    • 822 Thanks
    20aday
    • #5
    • 12th Mar 17, 11:46 AM
    • #5
    • 12th Mar 17, 11:46 AM
    Thankyou!

    What's the best way to use it? Small purchase each month and pay it off once I get my statement?
    X
    Originally posted by Fabulouso
    Definitely
    It's not your credit score that counts, it's your credit history. Any replies are my own personal opinion and not a representation of my employer.
    • Chappaz
    • By Chappaz 12th Mar 17, 3:37 PM
    • 130 Posts
    • 56 Thanks
    Chappaz
    • #6
    • 12th Mar 17, 3:37 PM
    • #6
    • 12th Mar 17, 3:37 PM
    Thankyou!

    What's the best way to use it? Small purchase each month and pay it off once I get my statement?
    X
    Originally posted by Fabulouso
    Aqua offers a Direct Debit setup where you can set it to automatically pay off the full balance on every due date, which is what you want to do to avoid interest charges.

    Just make sure you set up the DD now but manually pay it off in full for the first month or two, as it can take Direct Debits a while to become active.

    And avoid having a balance on the card of more than 30%-40% of the limit at any time.
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