Does credit still build with non credit building credit cards?

Jlawson118

I started with credit last year with the Aqua Advance card, and noticed my score was improving quite a bit, but after a few months, I applied for a credit card with a major bank I was with and was accepted. I stopped using the Aqua card but still kept it open.

The minute I closed my Aqua card down though was the minute my score dropped drastically.

I currently have a Barclaycard Reward with a £3500 limit, and the First Direct Gold with a £1000 limit. As well as a £1000 Overdraft with First Direct.

But my score is still ridiculously low. I'm 20 and it's never been perfect, plus I've had numerous searches recently due to car insurance, a new phone contract and changing current accounts a little too much. Although my score dropped before all of those. But it just seems to be stuck on 'poor' when a matter of a few months ago it was on 'good'

I haven't applied for credit in a good few months but nothing is budging. I know the score doesn't matter, it's what's on your report that does, but obviously the higher the score, the better chances you will get with credit..

And I really would like to build it up. I've never missed a payment or gone right up to my credit limit. I barely even use a quarter of my limit each month..will I still build it up without a credit builder card?

YorkshireBoy

Jlawson118 wrote: »

I haven't applied for credit in a good few months but nothing is budging.

You've made two applications in the last 2 weeks alone, according to your recent posts. And from memory you've also made others, or said you were going to.

You're 20 years of age. Just sit back, manage the credit facilities you have for 2 years, and come back in 2019 and let us know how you got on...please!?

[Deleted User]

You've also got to start ignoring those scores you're seeing. It's driving you to make all sorts of rash decisions by the looks of it, none of which are helping you.

The score is so insignificant that yours would actually be higher if you went bankrupt.

Superscrooge

Jlawson118 wrote: »

I haven't applied for credit in a good few months but nothing is budging. I know the score doesn't matter, it's what's on your report that does, but obviously the higher the score, the better chances you will get with credit..

And I really would like to build it up. I've never missed a payment or gone right up to my credit limit. I barely even use a quarter of my limit each month..will I still build it up without a credit builder card?

You can build a good credit history using any credit card, not just a credit builder card.
Credit Builder cards are so called because they are specifically aimed at people with poor credit history. They usually offer a lower initial credit limit than mainstream cards and charge a higher rate of interest.

One of the factors that has an adverse effect on your credit history is a lack of account stability.

Many of your posts seem to revolve around constantly opening accounts, closing accounts, applying for credit and getting rejected. Any organisation assessing whether to lend money would regard the constant 'chopping and changing' as high risk.

Stick to the advice in the previous posts. Less credit applications, more account stability, no missed payments, no maxing out your available credit. Within 12 months your credit file will look a lot better.

forgotmyname

My "score" decreased also when i spent over 50% of my cards limit. My "score" dropped quite a bit, even though i paid it off in full when the statement arrived.

Even though it dropped my bank increased my credit limit on the card without me even asking.

Goes to show how useless the "score" is.

Thrugelmir

Jlawson118 wrote: »

I started with credit last year with the Aqua Advance card, and noticed my score was improving quite a bit, but after a few months, I applied for a credit card with a major bank I was with and was accepted. I stopped using the Aqua card but still kept it open.

Lenders like to see stability i.e. long term relationships.

Ben8282

You have a Barclaycard Rewards card, a mainstream rewards credit card, with a decent enough limit.
You have a second mainstream credit card and a respectable overdraft facility.
From your other posts I recall that you have held Lloyds Avios amex duo rewards cards and closed them down.
You are 20 years old.
There are not many 20 year olds who have the cards that you have/have had. You must have been doing something right. In fact I will go as far as to congratulate you on what you have achieved. When I was 20 I had an Access card from my bank with a £300 limit and a Barclaycard with a £200 limit.
I didn't get Amex until I was in my mid-20's or any really big credit limits until I was in my late 20's/30's.

But now you must SLOW DOWN.
Look at your credit report.
What is the average age of your accounts? Mine is a three figure number in months. What is yours?
How many searches have you had in the past 6 months? How many of your accounts are more than 1 year old? How long have you been on the electoral roll? How long in current employment? etc
Your credit history needs stability and a history of sustained payments. Accounts showing sustained good account conduct. I have several open accounts with start dates of before you were born. A 20 year old simply cannot have that level of credit history. It needs to be built up over time.

I don't know why closing the Aqua account caused the score to go down. It shouldn't have unless the drop in available credit cause a sharp increase in your available credit/balance ratio. The most likely explanation is that it was something else, hard searches perhaps or a new account, that caused that. Anyway, if you keep paying everything up to date, don't max out the cards and stop applying for a while everything will get better in time and the score, for what it is worth, should increase.
I don't really understand what exactly you are trying to achieve though as you appear to already be able to obtain desirable mainstream rewards cards without too much difficulty. If you think somebody is going to give you a 5 figure credit limit tomorrow think again. I think it would be to your long term advantage to stick with the quite acceptable credit cards that you currently have for a while. As others have said, this chopping and changing is not helping the situation.

[Deleted User]

Ben8282 wrote: »

I don't know why closing the Aqua account caused the score to go down. It shouldn't have unless the drop in available credit cause a sharp increase in your available credit/balance ratio.

.

Simply because credit scores react negatively to sudden change, whether that change is good or bad.

Which is one reason they are so unreliable.

PixelPound

Ben8282 wrote: »

I don't know why closing the Aqua account caused the score to go down. It shouldn't have unless the drop in available credit cause a sharp increase in your available credit/balance ratio. The most likely explanation is that it was something else, hard searches perhaps or a new account, that caused that.

The Aqua card was his first, so I assume his average age dropped.

Until recently I had eight credit cards, of which 6 were effectively dormant as I hadn't used them in a while (I had been sent replacement cards that remained inactivated). I closed most of the unused cards, most were opened over a decade ago, kept one old one as I realised it was a cashback card and have started using that. So my score went down quite a bit as my average account age has gone down, but I have since been given a significant credit limit increase on the cashback card.

20aday

My "score" dropped a few points when I closed my Vodafone account I'd held for just under four years.

That'd been the longest recorded account on my credit files-hence the change as the majority of my accounts have a shorter history reported.

I agree-you need to calm it down. Credit isn't an automatic entitlement-and lenders like stability and longevity (hypocritical given the age of my accounts, I know).

Unless you really need to obtain a credit account manage the ones you've got already well and give it time.

My highest credit limit is £1,500-to be 20 and have a card with £3,500 is nothing to be sniffed at!

sourcrates

People are obsessed with credit cards, credit scores, getting credit, been rejected for credit, you would be much better served just living within your available means, been registered on the electoral role, and paying all your bills on time.

That alone, over time, will build up a credit history, most people are classed as having an average credit history anyway, you should not fall for the marketing tactics of the CRA`s and obsessing about your credit score.

In time, should you wish, you will be able to be assessed for a mortgage, the same as anyone else in similar circumstances.

All this borrowing, paying off, getting into debt again, for no good reason other than to promote a not descript credit score, is madness.