Noddle Downgraded My Score/Rating... Should I Care?

Voltron

I've read all the things about score/ratings, so I'm not panicking or anything but wondering if I'm using my CC in a way that's not conductive for making me look good with lenders.

I have a default that lasted on my account for a year then settled back in 2009/2010 which is now going to start slowly coming off. I've got one credit card which I took out last year, and a few loans that were all paid back 100% with no missed months or anything like that. My default was down to my bank making it as difficult as possible to pay off my credit card with them. But it's in the past (nearly) so I've never contested it.

Before the current report, Noddle just had a warning about the default. Now I have this as well:

You've recently increased the total balances on your unsecured lending which will impact your score.

Things you can do

When you start to reduce the total unsecured debt that you have, this will improve your score.
Try not to apply for, or take on, any additional credit facilities unnecessarily.

Here's my card usage since I took it out.




My bill comes through on the 25th of the month, I get paid on the 28th and I clear my balance around that point. Is this counter productive? Should I clear my balance before the bills comes instead? It's usually down to double figures by that point anyway as I clear a lot of the balance as I go - but if I'm abroad, which is when I'll use the card primarily and not my debit, I'll spend a few hundred, clear it, spend more, clear it etc and I know my next trip it's likely to have a balance of a few hundred GBP on it when the bill comes out, paid off the week after as usual.

By doing this, I'm not incurring any interest either am I? I've never balanced the CC by hand myself, I just pay what it tells me to and don't use it at the ATM which I know starts incurring interest right there and then. They keep telling me they expect my interest will be £5, but that's only if I don't clear the balance prior to the next bill I'm assuming?

Card is with Aqua, who ironically gave me the Noddle account for free.

Tixy

The default won't slowly come off. If the account has a default registered then the whole account and record of the default will drop off 6years after the default date shown on file.

Regarding the credit card - no don't pay it before the statement is produced, keep paying it as you are doing after the statement is generated. Ideally you would spend on it during the month and then just make one payment after the statement is generated for the full balance.

The entry looks a bit unusual because the payments are higher than the limit and the balance. Which is obviously because you are making payments against it during the month and then reusing the card.

Is this your only credit account now? if so and that £83 is the total amount you owe per your credit file then you can totally ignore the point quoted from noddle. No lender is going to view a balance of £83 or the £179 statement balance as a concern.

Voltron

Sorry, bit of bad wording with regards to the default. It will disappear entirely next month as that's the first of the 12 months of DFs listed... I've been waiting slowly for it to go from OK -> AB -> BB and it's so close now as the date is 27th January 2009 on the account. Even though I don't need credit right this second, I must say I'm looking forward to seeing that drop off my account finally!

Yes, the card is my only line of credit at the moment. I don't actually owe £83, that must've been the outstanding balance before I cleared it out a few days ago just to make sure I have all my finances sorted before my next trip.

I don't really need the card, but I want to show that I'm responsible with money and the tiny bit of cash back is nice. But given I have one of the debit cards from hell, it's a lifesaver when abroad and I'm in the position where I'm back and forth different places a few times a year now. Hopefully when my record is a bit cleaner, I'll be a step closer to getting a better card to replace it with too, hence making sure I'm doing everything 'right'.

Thanks for the vote of confidence