Does switching from a credit builder card effect the credit building process [UPDATE]

littly_kitty

Although I have a decent credit score, I've always found it hard to get credit cards, because I am self employed and don’t have a good income.

I was told I should use a Aqua card to build up my credit limits as that will make it easier to get a credit card elsewhere. I recently built up my limit with Aqua to £1200 (After six months).

However, the Aqua card doesn't offer any rewards, so I am thinking of switching.

If I apply for another card and stop using Aqua then will that affect the credit building process?
Should I just stick with Aqua until my limit is higher before switching?

My situation is kind of unique as I live with my parents, so I don't spend much. (On average it is around £30). Hence it takes a long time to build up credit history!

[Deleted User]

Credit history just requires continued use of you card and clearing in full. He a new card if you want but hold onto the aqua card to show stability.

Ignore the score, which will drop every time you do anything, and has no meaning.

littly_kitty

He a new card if you want but hold onto the aqua card to show stability.

Will it still show stability if I stop using the Aqua card altogether (but still hold on to it)?

Thanks!

[Deleted User]

Yes. But use it occasionally to prevent dormancy. It's also wise to have at least two active cards.

Candyapple

littly_kitty wrote: »

Although I have a decent credit score, I've always found it hard to get credit cards, because I am self employed and don’t have a good income.

I was told I should use a Aqua card to build up my credit limits as that will make it easier to get a credit card elsewhere. I recently built up my limit with Aqua to £1200 (After six months).

However, the Aqua card doesn't offer any rewards, so I am thinking of switching.

If I apply for another card and stop using Aqua then will that affect the credit building process?
Should I just stick with Aqua until my limit is higher before switching?

My situation is kind of unique as I live with my parents, so I don't spend much. (On average it is around £30). Hence it takes a long time to build up credit history!

That will be your biggest downfall in getting mainstream credit cards / rewards card - you may succeed in getting them, but will be given tiny credit limits.

No such thing as a credit score, what is your credit history like?

Do you have any late payments / defaults / CCJs?

Do you have any other cards / loans / overdraft / car finance etc?

Are you on the electoral roll (does it show on all 3 files?)

Do you have any other closed / settled accounts in your history?

Do you have many other 'credit' accounts showing on your files such as bank account / mobile phone etc.?

The free versions to check your credit files are below:
Experian: https://www.moneysavingexpert.com/creditclub
Equifax: https://www.clearscore.com
Call Credit: https://www.noddle.co.uk

littly_kitty

Yes. But use it occasionally to prevent dormancy. It's also wise to have at least two active cards.

How often do you have to use a card to prevent dormancy. That might be an issue for me as it is a struggle to spend £30 a month. However, I am keen to build up good credit history for the future, when my situation and income (hopefully) improves.

No such thing as a credit score, what is your credit history like?

Do you have any late payments / defaults / CCJs?

Do you have any other cards / loans / overdraft / car finance etc?

Are you on the electoral roll (does it show on all 3 files?)

Do you have any other closed / settled accounts in your history?

Do you have many other 'credit' accounts showing on your files such as bank account / mobile phone etc.?

I've rarely used any credit, but when I do I always payback in full within 30 days.
I don't have a mobile or CCJs. I do have 10 bank accounts, because I cycle my savings through them to earn interest (and also to get switching bonuses). I know opening those accounts has lowered my score on Noodle and ClearScore. (It went from 490 to 450).

[Deleted User]

A couple of times a year should prevent dormancy. Just buy a packet of Chocolate Hob Nobs with it (other biscuits are available).

And stop looking at your credit score.

Candyapple

Why don't you enter your details on the eligibility checker here for rewards cards, what do the results say?
https://creditcards.moneysavingexpert.com/?cashback&_ga=2.42984166.2106567764.1499247905-359370231.1499247904

littly_kitty

@Candyapple
Thanks for the credit tool. It says I've got 80% chance of getting most cards.
The card I want is the TSB card which isn't listed on the tool, but I imagine if I have 80% of most cards, then I would be accepted.
The TSB card doesn't offer fee-free overseas purchases, so I can still use my Aqua card when I make foreign purchases (which will stop it becoming dormant).

I suppose I could try applying for the Aqua reward card but it only offers 0.5% cashback while TSB offers 1%.

Thanks for all the help!

B_G_B

littly_kitty wrote: »

My situation is kind of unique as I live with my parents, so I don't spend much. (On average it is around £30). Hence it takes a long time to build up credit history!

littly_kitty wrote: »

I suppose I could try applying for the Aqua reward card but it only offers 0.5% cashback while TSB offers 1%.!

I know that this is MSE, but personally I would not let ~15p or ~30p per month reward be the main deciding factor on which card to go for.

DCFC79

littly_kitty wrote: »

@Candyapple
Thanks for the credit tool. It says I've got 80% chance of getting most cards.
The card I want is the TSB card which isn't listed on the tool, but I imagine if I have 80% of most cards, then I would be accepted.
The TSB card doesn't offer fee-free overseas purchases, so I can still use my Aqua card when I make foreign purchases (which will stop it becoming dormant).

I suppose I could try applying for the Aqua reward card but it only offers 0.5% cashback while TSB offers 1%.

Thanks for all the help!

You have a 20% chance of being turned down.

Depends if you can get 1 of the reward cards, I wouldnt bother myself, just keep on using the Aqua card.