We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
So i have a Credit Card but I'm still 'Poor'

PHARR
Posts: 405 Forumite

in Credit cards
Afte lurking around this section and looking at Martins tips to getting better credit rating scores i finally signed up to an 'Aqua' credit card.
Aqua gave me a credit card with only £250 max limit.
This is where i stand:
Income (After Tax) : £1300 Monthly
Overdraft : £300
Direct Debits I pay off monthly (never missed one) :
Phone, Sky, Car Insurance, Content / Home Insurance
I added the Aqua card to my DB list, and make sure whatever i owe is paid off within the first week of the next month.
Where am i going wrong? I have a poor credit rating and i think its getting lower? What can i do to boost this? is there a way i should be using my credit card which makes bigger difference to my rating?
Im stuck and new to this all, id like to boost my credit rating within the next 6 months and i assumed getting an Aqua card would help. However i see little difference.
Thank you.
Aqua gave me a credit card with only £250 max limit.
This is where i stand:
Income (After Tax) : £1300 Monthly
Overdraft : £300
Direct Debits I pay off monthly (never missed one) :
Phone, Sky, Car Insurance, Content / Home Insurance
I added the Aqua card to my DB list, and make sure whatever i owe is paid off within the first week of the next month.
Where am i going wrong? I have a poor credit rating and i think its getting lower? What can i do to boost this? is there a way i should be using my credit card which makes bigger difference to my rating?
Im stuck and new to this all, id like to boost my credit rating within the next 6 months and i assumed getting an Aqua card would help. However i see little difference.
Thank you.
Better to understand a little than to misunderstand a lot.
0
Comments
-
Almost everyone will get £250 to £500 on the Aqua card, so don't beat yourself up over that.
Why haven't you asked your bank for a credit card? After all, nobody knows more about your financial circumstances than the bank that receives your salary and pays your bills.0 -
Afte lurking around this section and looking at Martins tips to getting better credit rating scores i finally signed up to an 'Aqua' credit card.
Aqua gave me a credit card with only £250 max limit.
This is where i stand:
Income (After Tax) : £1300 Monthly
Overdraft : £300
Direct Debits I pay off monthly (never missed one) :
Phone, Sky, Car Insurance, Content / Home Insurance
I added the Aqua card to my DB list, and make sure whatever i owe is paid off within the first week of the next month.
Where am i going wrong? I have a poor credit rating and i think its getting lower? What can i do to boost this? is there a way i should be using my credit card which makes bigger difference to my rating?
Im stuck and new to this all, id like to boost my credit rating within the next 6 months and i assumed getting an Aqua card would help. However i see little difference.
Thank you.
Well having one credit card with a tiny limit (presumably not for long either?) isn't going to make much difference.
However, I assume it's a credit ratings agency telling you that it's still poor? In which case IGNORE THEM. I really can't comprehend how people are still handing over hundreds of pounds to these organisations for useless "credit scores"! They aren't the people who are deciding whether to lend you money or not so their opinion is utterly irrelevant (and no more valid than anyone elses!).0 -
Because Aqua was voted or spoken about as the best to build up my credit history. I just went from there. Is there a way to spend on the credit card and pay back to make my credit rating better?
Im with LLoyds TSB. They are great help but i never thought of asking them for a card.Better to understand a little than to misunderstand a lot.0 -
callum9999 wrote: »Well having one credit card with a tiny limit (presumably not for long either?) isn't going to make much difference.
However, I assume it's a credit ratings agency telling you that it's still poor? In which case IGNORE THEM. I really can't comprehend how people are still handing over hundreds of pounds to these organisations for useless "credit scores"! They aren't the people who are deciding whether to lend you money or not so their opinion is utterly irrelevant (and no more valid than anyone elses!).
Ive been using Experian. I assumed what i see is the truth. How would i check my credit rating otherwise though if i didn't use these type of companies?Better to understand a little than to misunderstand a lot.0 -
what do your credit files actually say?
are you on the electoral rool
how long have you had the CC?
do you pay the CC debt off after you receive the statement or before?
when you say you have an overdraft do you mean you use the OD regularly or that you have an OD facility but don't actually go into it?0 -
You need to use the card for at least 6 months to a year before it will make any significant difference to your credit worthiness, and as already posted, dont take too much notice of the "scores" credit reference agencies give you, as each lender will have their own criteriaDebt free and staying that way! :beer:0
-
Ive been using Experian. I assumed what i see is the truth. How would i check my credit rating otherwise though if i didn't use these type of companies?
There's no such thing as "a" credit rating. Every single bank will make up their own rating based on your credit report, and will not pay the slightest bit of attention to what Experian thinks about it. Nothing you see "isn't the truth" - but no score they give you is remotely relevant to credit applications (well, it gives you a rough idea - but you could easily do that yourself).
You can check your credit report (which you can get for £2 from Experian), but you never check your credit rating.
And yes, Aqua is perfectly fine and you're not doing anything wrong, but it takes years to build up a particularly good credit rating. As Jen said it will take at least 6 months before making the blindest difference - and even then I'd personally only apply for other sub-prime cards (or your own bank assuming you have a good history with them).0 -
I added the Aqua card to my DB list, and make sure whatever i owe is paid off within the first week of the next month.0
-
what do your credit files actually say? - This is what it shows currently....
are you on the electoral rool - Yes i have been on it now for 2 months
how long have you had the CC? - 2 Months
do you pay the CC debt off after you receive the statement or before? - I don't live at the address provided for my CC, but i know my DB are for the first week of each month. Could i be falling short? How can i find this out?
when you say you have an overdraft do you mean you use the OD regularly or that you have an OD facility but don't actually go into it? - I never use to have an OD but because xmas and all I've had to have a overdraft of £500 which il clear next month.callum9999 wrote: »And yes, Aqua is perfectly fine and you're not doing anything wrong, but it takes years to build up a particularly good credit rating. As Jen said it will take at least 6 months before making the blindest difference - and even then I'd personally only apply for other sub-prime cards (or your own bank assuming you have a good history with them). - So i should apply for another CC and use that instead of using my visa debit?So you could fall foul of paying too early or too late and getting a late payment marker on your account. Always pay between your statement printing date and payment due date, or leave the funds in your account and setup a DD. - I don't know the exact date the statement is due however i set up a DB to take the money for the first week of the month. This may be a problem as you said.
Thanks for all this help, i just want to do it all correctly and want to build a good history correctly and as fast as i can.Better to understand a little than to misunderstand a lot.0 -
Is your credit card address the same as the electoral roll address?
Why is that not the address you live at?
Statement dates are not the same every month, you need to ensure you are checking the statement (and therefore the due date for your payment) every month. If you do not pay within that set time frame (after statement and before due date) then you will not build up a good credit history and could be damaging your credit file.
However as has been said - building up a credit history takes time. Its likely that you will need to have had and been using the card for at least 6months before it starts to make a difference to you being accepted for new credit.A smile enriches those who receive without making poorer those who giveor "It costs nowt to be nice"0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 352.1K Banking & Borrowing
- 253.6K Reduce Debt & Boost Income
- 454.2K Spending & Discounts
- 245.1K Work, Benefits & Business
- 600.7K Mortgages, Homes & Bills
- 177.5K Life & Family
- 258.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards