Couple of questions about the Aqua reward card

Azelphur

Hi, I've never had a credit card (or any type of credit for that matter) before and am considering applying for the Aqua Reward card (3% cashback sounds like a nice offer)

My questions are:

1) Am I likely to get accepted for this card baring in mind I am unemployed (disability allowance)?

2) I've heard that if I get rejected it affects my credit score, is this true?

3) If I do get this card, is it better for my credit rating to pay it off in full every month, or should I keep a small balance on the card and pay interest?

RichL74

1) It'll ask you what your current employment status is, you can either lie (not a good idea) or tell the truth.

2) It'll affect your ability to get credit yes but I wouldnt worry about your score as nobody really knows this - the banks all have their own quantum-physics based algorithms to work out whether or not to offer you credit.

3) Pay it off in full would be my humble opinion.

Voyager2002

If you apply (whether accepted or not) your credit file will record that you applied for credit. Lots of applications in a short space of time would damage your credit rating, but one application is not going to make any difference.

I have no idea how they regard people on DLA: does their web site say anything?

In any case, you will not do your credit record any good by maintaining a balance and paying interest. All that matters is that you make all payments on time.

Azelphur

Silky89 wrote: »

I agree with all points, although it offers 0% for the next three months, you should treat it as a credit building card, which is what it is!

Hmm, I can't find any reference to this on the description page about this, is that no cashback for the first 3 months?

Azelphur

Voyager2002 wrote: »

If you apply (whether accepted or not) your credit file will record that you applied for credit. Lots of applications in a short space of time would damage your credit rating, but one application is not going to make any difference.

So if I get rejected by aqua I should wait a few months before trying to apply for a different card?

Voyager2002 wrote: »

I have no idea how they regard people on DLA: does their web site say anything?

I found this quote

While many credit card applications set minimum salary requirements that make them out of reach for those without work, there are specific credit cards for the unemployed. If you are self-employed or employed with a fluctuating income, aqua might be able to help you obtain credit. We specialise in assisting people with exceptional circumstances and would be happy to deal with your query.

Not sure if that bodes too well for me getting this card :S

Thanks everyone for the quick and useful replies

RichL74

If you get rejected yes, I would leave applying for anything for a month or two.

Just for your own piece of mind really, you dont want to keep applying and getting (potentially) turned down.

Azelphur

Just applied and got instantly rejected! Oh well

RichL74

Dont be too disheartened, you and millions of others in the same boat.

Azelphur

Hehe, thanks for everyones help anyway, I shall wait 2-3 months and try again

Azelphur

Yes, ideally I want a card with cashback and to improve my rating. I do not want to leave a large balance on the card.

Thanks for the advice, I shall try and get the capital one card next time (I assume I should wait 2-3 months before applying for it)

CLAPTON

Azelphur wrote: »

Yes, ideally I want a card with cashback and to improve my rating. I do not want to leave a large balance on the card.

Thanks for the advice, I shall try and get the capital one card next time

cash back cards or cards with rewards tend to go only to people with good established credit histories and good incomes.

it is unrealistic to expect a cash back card as your first credit card

go for a 'beginners' card first
spend regularly and pay in full and wait for at least 6 months before trying for a better one