Trying to build credit rating but score went down?

Fabulouso

Hello,

I am trying to build my credit rating. I have a charging order that is due to be removed 2019 so am trying to build the rating to coincide with then.
I got an aqua card, and was given the max limit of £1200. I since got an email from my credit reference account to say my rating had gone down 15 points. I don't get it?? I haven't missed any payments of anything. I haven't used to card though, so could that be it?
Thankyou in advance x

Chappaz

The credit score means nothing. It's an extremely rough guide. Only you and the agency can see it. Lenders can't.

But the reason will be that, when you applied, Aqua would have carried out a hard search on your credit file, and searches like this tend to dip your score by a few points.

Having a credit card will do nothing positive for your score. You have to use it. This path will always result in an initial dip in your score, but then it will gradually start increasing over the next 6-12 months.

Fabulouso

Thankyou!

What's the best way to use it? Small purchase each month and pay it off once I get my statement?
X

ForeverAwake

Ignore the "score".

Instead, focus on:

- Paying on time

- Keeping your debts low

- Applying for credit only as needed

- Keep your oldest accounts active

- Try eligibility checkers before making any applications

Give it 6 months and see where you are, you may be able to apply for Prime cards with confidence then

20aday

Fabulouso wrote: »

Thankyou!

What's the best way to use it? Small purchase each month and pay it off once I get my statement?
X

Definitely

Chappaz

Fabulouso wrote: »

Thankyou!

What's the best way to use it? Small purchase each month and pay it off once I get my statement?
X

Aqua offers a Direct Debit setup where you can set it to automatically pay off the full balance on every due date, which is what you want to do to avoid interest charges.

Just make sure you set up the DD now but manually pay it off in full for the first month or two, as it can take Direct Debits a while to become active.

And avoid having a balance on the card of more than 30%-40% of the limit at any time.