Aqua Card Simplified Rate

Kdray

Hi Guys. 
So I am on my journey building a decent credit file, or at least trying too. 

Currently sitting at a poultry 700 Experian & 400 Equifax. I know this doesn't mean much, but it's the best way to represent things, which is obviously why they have done it. 

I only have a bank of 17 months old, phone Contract of 15 months, couple of banks at 6 months and car insurance. 
They 6 month old bank gave me an overdraft (only £250). Think this was based on my score when I opened the account, but they won't raise it, but have not done a search on me. So assuming they base on this on the opening scoring they get, and then monitor internal balances etc there on out. 

Been waiting a while to get the eligibility checker to say I should get approved on a credit card (know this is what's been needed to ramp up my worthyness). 

Well I got offered Cap1 & Aqua, Cap1 cancelled application after giving me £500, so then went for the Aqua card, £600 starting limit, account opened on 1st February. 😃. 
Now suppose I have two questions......

How long did you guys take to get a increase, was it four months for most? 
And how did this effect your score, what difference did you notice when it went over £1k. (I have a statement balance each month of about £100-150. But actually spend about £1300 pcm by bringing the balance down often. (Have let them earn about £1.50 interest off me the last month and they probably will this month) then clear most balance before statement date and then some. 

And secondly my annual simplified rate is 22%. 
Which uncompounded is 20%, am I correct in thinking this is a really good rate for Aqua? Or have I worked this out wrong? 

Thanks in advance guys 👋

I probably will have more questions, as this is all quite new to me and I'm really pushing after being young and indicated on financial importance some 10 years ago. Sorry for the long post, thought I would get it all over though! Haha

Thanks again. 

cymruchris

You need to start by reading the sticky at the top of the 'Credit file & ratings' forum:
https://forums.moneysavingexpert.com/discussion/4974939/what-your-credit-score-really-means/p1
Credit scores are a vague indication of your history - but are not very accurate.
There isn't a set time scale on when your limits might be raised (even if they are raised at all). There are so many internal factors at play in each of the financial institutions, nobody can guess as to when you - me - my neighbour - or the man in Tescos will get a limit rise.

By using your credit responsibly - paying off in full each month by direct debit - will improve your history. As your history gets better - it's likely the limit you're offered will improve, and the products open to you will become more - but to emphasise - there's no fixed term on how long this will take to happen. 

Unless it's an emergency - you shouldn't pay interest at all. Every single penny you spend should be repaid monthly - preferably by direct debit in full. 

The interest rate can be 1% - 10% - 100% - 10000% - but being someone building up a decent credit history - you shouldn't pay a penny in interest by paying everything in full by the due date on all of your accounts. 

Building your credit history is a long journey. It doesn't happen after a couple of months. Keep doing what you're doing, and you'll see slow but steady improvements over time.

Kdray

Thanks for your detailed response. 
Nice of you to take the time to write all of that. 

I will have a read of that link you put there, I hadn't noticed it previously. 

Thanks again! 

Dobbibill

Be mindful that during the past 18 months even people with 6 yrs of history have had their credit limits reduced as lenders exercise caution with the pandemic. Your limit may take longer to increase than previous posters have reported pre-pandemic. Pay in full every month and build a history of repaying credit.

ywlgy

I got only 250 with Aqua at the beginning, but they increased my limit every 4 months for a few times. I have never paid any interest to them.

Kdray

Thanks guys. 

Am I correct in thinking the rate from aqua is a v good rate for them? Seems everyone gets 35% upwards. 

Or have I not understood simplified rate correctly? 

Thanks 

Kdray

ywlgy said:

I got only 250 with Aqua at the beginning, but they increased my limit every 4 months for a few times. I have never paid any interest to them.

Thank you. 

Was this on the date of the 4th statement, I have just had my third. 

Do they tell you in your statement letter, or just put it on your account that date. 

Thank you 

[Deleted User]

Kdray said:

Am I correct in thinking the rate from aqua is a v good rate for them? Seems everyone gets 35% upwards. 

Aqua's typical headline rate is around 35-39% APR, depending on channel. You can compare that to your APR (not any other rate).

Most customers, though not all by any means, will see their rate rise based on their risk and account management, as well as changes in the cost base.

jay1804

Kdray said:

ywlgy said:

I got only 250 with Aqua at the beginning, but they increased my limit every 4 months for a few times. I have never paid any interest to them.

Thank you. 

Was this on the date of the 4th statement, I have just had my third. 

Do they tell you in your statement letter, or just put it on your account that date. 

Thank you 

I got my first increase after 3 statements. I was sent a letter with the offer. My limit started at £300 and went to £1300 

PRAISETHESUN

If you pay your statement balance in full (which you should if you're trying to improve your credit history) then the APR doesn't matter as you'll never pay a cent in interest. The main thing is to focus on managing your accounts well and after 6-12 months you'll find you start to get limit increases and become eligible for better cards.

I haven't had an Aqua card, but the sub-prime cards I have include a Tesco Clubcard CC that gives me £200-300 increases every 4-5 months like clockwork and a Capital One card that has only ever given me a single increase (£200 to £450) in the last 3 years - different lenders do things differently it seems.

Kdray

Yeah I am paying in full, just last month and this month, my money fell a week after balance due date. 
I usually clear before statement balance, but leave a little. 

Just the way the timings work out.

So is my simplified annual rate of 23%, the same as Apr? (I'm not asking as I want to carry a balance, far from. Just wondering how aqua viewed me, as compared to some the limit is higher, albeit not the highest, but seemingly with a good rate).

😃