Credit card rebuilder confused

Daydreamer27

Hi there, I purchased an Aqua card as they are specially targeted to help people to rebuild their credit report, I am just going through with the purchase of my first house and I needed a bit of work on my report so went for the Aqua through the money saving expert site, I was approved and was started on a £250 limit I have been using the card and paying off the balance In full before the minimum payment is due I always pay it off in full! Now it has had a negative effect on my experian report and my score is now worse then before I got this card it has decreased by 100 points and the negatives states that I have 3
1) having a low credit limit
2) having a revolving credit facility
3)constantly using revolving facility

I am really really confused as I thought this is how you use them to build your credit report back up use it and pay the balance off in full? But it has had a really bad impact on my score and now I am finding it difficult to find a mortgage lender because of this I am so disappointed as I thought that these cards helped you but it hasn't helped me any advice on this I could really do with some help and advice

[Deleted User]

How did you 'purchase' an aqua card? It has no fee.

However - ignore your score. It will react to new credit, loss of credit, spending, not spending, minimum payments, full payments, rain, sun and Tuesday afternoons.

Use your card regularly and pay off in full each month. That way you will build a credit history.

No mortgage lender will ever see your score so it's not preventing you from anything. However, the data on file your may be.

bigadaj

Experians score is meaningless, experian lend precisely none of their money, the score is number they just sell.

So long as you are using your card for normal purchases. Not e deeding your credit limit and paying off in full after the statement date and before the due date your file will improve.

Anthorn

Daydreamer27 wrote: »

Hi there, I purchased an Aqua card as they are specially targeted to help people to rebuild their credit report, I am just going through with the purchase of my first house and I needed a bit of work on my report so went for the Aqua through the money saving expert site, I was approved and was started on a £250 limit I have been using the card and paying off the balance In full before the minimum payment is due I always pay it off in full! Now it has had a negative effect on my experian report and my score is now worse then before I got this card it has decreased by 100 points and the negatives states that I have 3
1) having a low credit limit
2) having a revolving credit facility
3)constantly using revolving facility

I am really really confused as I thought this is how you use them to build your credit report back up use it and pay the balance off in full? But it has had a really bad impact on my score and now I am finding it difficult to find a mortgage lender because of this I am so disappointed as I thought that these cards helped you but it hasn't helped me any advice on this I could really do with some help and advice

I haven't seen that on Experian but that doesn't mean it doesn't exist. It appears to be more an appraisal from clearscore and it's in relation to that that I'm replying.

Well, yes, limit counts and the higher the better but the percentage of that limit used also counts. There are various maximum percentages of limit used suggested from time to time but no-one really knows and it probably varies from lender to lender.

In general what is looked for is a monthly reducing balance. i.e. you buy something and get a balance and then pay it off monthly. If you are paying off the full balance every month it could be that you never have a balance in some months which means that part of your credit report is missing. That depends on the date you pay compared with the date the lender reports to the CRA. Something for you to check on your credit report.

I don't understand the part on revolving credit. That's how credit cards work. I assume it's to do with a reducing balance I outlined above.

Lastly there is no rule on any credit card T&Cs nor on any CRA that says you must clear the full balance every month. The two rules that count are pay the minimum payment on time every month and don't go over your limit.

Good luck.

Voyager2002

As posted above, your score is meaningless.

You say that you are having trouble finding a mortgage lender: perhaps you could post about this and ask for help (perhaps go through a broker)? I can say one thing for certain: the way you are using your credit card (which is completely within the rules) is not doing anything to make it more difficult for you to get a mortgage.