Aquacard and credit rating

Gidans24

About six months ago I got a basic aquacard and was accepted with a few hundred quid limit. My aim is to build up my credit score. After four months they upped the limit to a grand.

Somebody said to me that as Aquacard is designed for people with low credit ratings, and thus has a high APR, that it can actually negatively impact a credit score and that I should move to another provider now that my rating has improved somewhat?

Is there any truth in this? Another bank has offered me a card with a 4K limit. Would taking this increase my rating?

Any info welcome
Thanks

[Deleted User]

No truth. Your rate or lender does not show on you credit file.

If you can get a more appropriate card, then do so, but not out of fear of the aqua card damaging you.

Only ever look at the data on your file, not the score, which is effectively meaningless

Anthorn

Gidans24 wrote: »

About six months ago I got a basic aquacard and was accepted with a few hundred quid limit. My aim is to build up my credit score. After four months they upped the limit to a grand.

Somebody said to me that as Aquacard is designed for people with low credit ratings, and thus has a high APR, that it can actually negatively impact a credit score and that I should move to another provider now that my rating has improved somewhat?

Is there any truth in this? Another bank has offered me a card with a 4K limit. Would taking this increase my rating?

Any info welcome
Thanks

As above, the name of the lender and the card is not shown to other lenders. It's there when you view your own credit report for convenience in identifying accounts.

Used to be true that Aqua was for those who had a less than perfect credit report in the past but that was quickly eroded since the release of the Aqua Start card. Now they frown on defaults and in that case may suggest the Start card as an alternative to their other cards. A bit like Lloyds Bank though in that it's difficult to pin them down to make predictions: Sometimes they do and sometimes they don't and vice versa.

eset12345

Anthorn wrote: »

As above, the name of the lender and the card is not shown to other lenders. It's there when you view your own credit report for convenience in identifying accounts.

Used to be true that Aqua was for those who had a less than perfect credit report in the past but that was quickly eroded since the release of the Aqua Start card. Now they frown on defaults and in that case may suggest the Start card as an alternative to their other cards. A bit like Lloyds Bank though in that it's difficult to pin them down to make predictions: Sometimes they do and sometimes they don't and vice versa.

they don't frown that much, well not in my case.

I have a good number of defaults, as a result of a motorbike accident that seen me off my feet and losing my job.

although the defaults were 1 year plus old at the time of getting an aqua card, after a few months they upped my limit form £300 to £950

A4445

Aqua Start is crazy 49.9% to 69.9% APR it's daylight robbery

dazzaofdagenham

A4445 wrote: »

Aqua Start is crazy 49.9% to 69.9% APR it's daylight robbery

Cards like that should have a maximum credit limit, i would reckon 1K.

Spending on that and having a balance would be asking for trouble and getting back into debt.

Shakin_Steve

A4445 wrote: »

Aqua Start is crazy 49.9% to 69.9% APR it's daylight robbery

Agreed but, as I've said before, APR could be 1000%, it really doesn't matter if you spend only what you can afford and settle in full each month.

Anthorn

dazzaofdagenham wrote: »

Cards like that should have a maximum credit limit, i would reckon 1K.

Spending on that and having a balance would be asking for trouble and getting back into debt.

If you mean a maximum credit limit of £1k that's excessive for such a high APR: What the APR is saying is that you're a high risk and you could be likely to default involving the lender in extra fees to recover the debt. I would reckon £100 to £250 maximum credit limit.

Mrs_Ryan

Aqua Start has a maximum £300 limit. I've got the Aqua classic- I did have something like 25 defaults (I've had some stick on this forum for that but that's due to cancer and subsequent effects) although the vast amount of those debts have been written off so my credit file looks a lot better.
I did pay off a catalogue account in full and close it (had it five months and limit upped every month) just before I was accepted plus I have a Cashplus credit card with a limit of £100 that is now 4 months old and cleared in full every month, as is the Aqua card.

darkidoe

My Aqua Advance has a limit of over £2000.. Very useful for overseas non-sterling transactions when required due to no non-sterling transaction fees. Aqua are notorious for being generous with credit limits giving limit increases every few months, which is both good and bad depending on how dependent on credit you are. I can see people get stuck on the vicious cycle easily.

Key is to always pay in full via DD. APR means nothing if paid in full.

dazzaofdagenham

Anthorn wrote: »

If you mean a maximum credit limit of £1k that's excessive for such a high APR: What the APR is saying is that you're a high risk and you could be likely to default involving the lender in extra fees to recover the debt. I would reckon £100 to £250 maximum credit limit.

Agreed, high APR could equal a easy way back into debt.

For those that have been in debt and have learnt there lesson I reckon that a credit limit of 1K is fine. Anything else is asking for trouble should there a blip in someone's finances...