Credit Repair Card has damaged score

Risca_Bob

Don't know if anyone else has experienced this but I recently applied for and got an Aqua cash-back credit card with a small £600 limit. I am very happy with the card and service and the limit is fine for now.

The problem now is that my credit score has gone down! The reason shown by Noddle (a free service with the card) is that I am close to my credit limit?? Yes, I use the card up to the limit and repay in full each month by DD. At any given time, the outstanding balance will be close to the small £600 limit, monetarily if not as a %.

Will this continue until a get a higher limit or should I do something else?

Paully232000

forget about your credit score as this means nothing to any future potential lender. They have their own way of deeming you worthy or not of further credit.

JUst keep using the card sensibly and this will show future lenders that you are a responsible borrower and will, over time, all things being well, give you access to better cards.

mcpitman

What has been said above.... in addition your deemed "credit score" will reduce because you have applied and taken out new credit. That's just the way their algorithms work on the Experian/Noddle/Equifax score cards.

You are now a temporarily higher risk, as you now have exposure to new credit and no/minimal history of achieving your repayments.

Or in other words, you are not as "credit worthy" now as you were previous to this application, as you now have more debt/credit.

fruitisbad

Is it possible that as you are going quite close to your limit that it may appear you can't live within your means and require that level of credit every month?

Maybe just try spending £100 of your £600 limit per month.

bigadaj

Alternatively just make a partial payment part way thorough the month, which will lower the apparent use age though this will also mean a shorter interest free period.

If you do use this method then you might need to check your banks approach to interim payments with a full direct debit in place, some take this into account and some don't, though if you make the payment mid month it should have time to correct in most instances.