how long should i wait.....

kevin2725

hi

im trying to improve my credit rating, i settled all my old debts on credit file, my current score is 547, i applied for a aqua card and got accepted last week, on reading up on how to improve my credit score it says i should have 2 or 3 credit cards and pay them off in full every month is what i plan to do, just need a rough idea on how long to wait between applications? dont want to be rejected and put a bad mark on my credit file.....

Anthorn

Usual rule of thumb is no more than two credit searches in a six months period. However I had three in the same week last month and I got all three new accounts. But that's me done until September.

sfax

Paying all your cards off in full is probably not the best strategy for improving your score. Pay more than the minimum and pay on time. Lenders don't make as much money from people that always pay off in full. Read the risk/profit section on the MSE guide

It can also be wise to make simultaneous applications so that lender A doesn't see the new agreement from lender B. they will see the search though if they use the same CRA

TheGenerus1

Anthorn wrote: »

But that's me done until September.

You have just opened 3 new accounts, What's your plan for September?

The_Boss

Anthorn wrote: »

Usual rule of thumb is no more than two credit searches in a six months period. However I had three in the same week last month and I got all three new accounts. But that's me done until September.

Yeah, ditto. Before this week I had 5 credit cards totalling £19k, roughly two thirds of my salary. This week I applied for 3 cards, accepted for all and with
a credit limit totalling just over £8k (including the low limit Aqua card).

My last application was in October and no other searches would have been recorded (as I had not applied for credit since early 2011). However, because none of the 'new' cards show up as accounts with the CRAs yet, I think that has a big impact on being successful. If I had applied for one or two now and one or two in a six weeks then the decision could be different or with a much lower limit.

My suggestion to the OP would be slightly different. Build more of a profile by applying for one now and if not accepted try again in a month or two.

The_Boss

sfax wrote: »

Paying all your cards off in full is probably not the best strategy for improving your score. Pay more than the minimum and pay on time. Lenders don't make as much money from people that always pay off in full. Read the risk/profit section on the MSE guide

It can also be wise to make simultaneous applications so that lender A doesn't see the new agreement from lender B. they will see the search though if they use the same CRA

Paying off in full, unless a promotional balance transfer offer, is the best way to save money through not paying interest AND improve how most lenders assess you. The credit scores by the CRAs are not accurate as to how lenders assess you. Paying in full will show up as a well maintained account for that month, assuming payment is on time and limit not exceeded. Agreed that you should at least pay the minimum plus £1 to avoid a 'minimum payment' flag showing on your report.

dalesrider

kevin2725 wrote: »

hi

im trying to improve my credit rating, i settled all my old debts on credit file, my current score is 547, i applied for a aqua card and got accepted last week, ....

So you have already been bitten once and left with the scars....

So stick with one card and run that in the manner its supposed to be.

Don't mess around getting more and risk the slippery slope back to where you were before.

547. That is not the info that matters to any bank/card provider. So stop obsessing over it.