Aquacard and credit rating

Candyapple

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

If another bank has offered you a card with a £4k limit then the Aqua card has served its purpose - you are now attractive to mainstream lenders again.

Whilst lenders cannot see the name of other lenders and only hard information like payments made, credit limits etc from a credit search, low credit limits (sub £1k) would most likely indicate to lenders that they are subprime cards.

If you need a new card such as 0% purchases or rewards/points etc. then I would apply for one of those and then close the Aqua one. A higher limit is always going to look better than a lower one. Or you could just keep the Aqua one open in the background ticking over spending nothing on it to build up your account length of history and then close it when say you've got 1-2 years.

bigadaj

Deleted_User wrote: »

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

I've just had to contact ns&i regarding a new password and for identity authentication they use a multiple choice list of providers of your financial accounts. I was asked three questions, two on current accounts and one on a credit card, each one asking the name of the provider of an account opened on a certain date from a choice of five options.

So they obviously have sight of the relevant providers.

Andybez38

Deleted_User wrote: »

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

How do we know what lenders can and cannot see on your credit file. Where do i find proof of this. You are saying they cannot see any of your existing account lenders or rate of what you are being lent at? Where do you find this info please.

[Deleted User]

Have a look at the CRA websites.

[Deleted User]

bigadaj wrote: »

So they obviously have sight of the relevant providers.

No, they don't. NS&I aren't the ones verifying that information. It goes through the CRA.

Anthorn

Andybez38 wrote: »

How do we know what lenders can and cannot see on your credit file. Where do i find proof of this. You are saying they cannot see any of your existing account lenders or rate of what you are being lent at? Where do you find this info please.

Think about it: What lenders are concerned about is who you are including your social status and employed/professional status, your overall available credit in relation to your income, your credit utilisation (how much of your available credit you're using) and whether you've stuck to your agreement by paying on time. They don't give two hoots who you have your credit from or how much interest you're stuck with.

But note "income", "social status" and "employed/professional status: Those are shown on your application form which comes first before the lender decides or doesn't decide to check your credit report (tip).

bigadaj

Deleted_User wrote: »

No, they don't. NS&I aren't the ones verifying that information. It goes through the CRA.

Ok, but they obviously know after you've told them.

Seemed a very odd way to just confirm an identity check to me.

[Deleted User]

bigadaj wrote: »

Ok, but they obviously know after you've told them.

No, because the whole thing goes through the CRA. They're not seeing or recording any of the data.