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Vanquis charges
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# 1
silentkiller
Old 08-04-2011, 11:18 AM
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Default Vanquis charges

Okay, I have trawled the net for some kind of info on this and have found a bit but nothing that really related to my problem.

I have a vanquis card (a mistake I now know) with a credit limit of 500. I was in credit and haven't gone over the limit since having it - which is about 2-3 months now. I checked online after my first payment of 30. I was now in credit by about 19. I was under the impression that interest was part of my minimum payment and so was suprised when I was then told 3 days ago that I needed to make a payment of 56 as I was over my credit limit!! I logged on - no recent transactions and I hadn't used the card since 3rd March. I rang them up and asked them why I was now over the limit and she explained that my interest was added to my balance. I didn't think this was how they did things and am now worried that every month I am going to go over because the interest is going to fluctuate. What is the minimum payment for if it does not include interest?

If anyone can tell me if they are allowed to do this and if all credit cards operate like this then I would be greatly appreciative.
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# 2
zx81
Old 08-04-2011, 11:24 AM
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Do you mean 'in debt', rather than 'in credit'? If you're in credit, then no interest would be payable, as they owe you.

2011 agreements have a min payment of 1% plus fees and interest - but old ones can be anything - often a flat % - eg 2%.

I'm not clear on how you went from being 19 in credit to being 56 over a 500 credit limit in a couple of months without using it. Vanquis APRs aren't THAT high.
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# 3
NekoZombie
Old 08-04-2011, 11:28 AM
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I have a feeling OP means that 19 was remaining on the credit limit, therefore they spent 481 on the card. The minimum payment obv didn't include interest charges, which has now taken the OP over limit.
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# 4
zx81
Old 08-04-2011, 11:33 AM
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Ah. Gotcha. The intense sunshine today has obviously frazzled my brain.
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# 5
silentkiller
Old 08-04-2011, 11:37 AM
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Yeah that is what I meant Neko.
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# 6
silentkiller
Old 08-04-2011, 6:40 PM
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Bump - any one got any help?
I may be in debt but I do have lots of pretty things
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# 7
fozmcfc
Old 08-04-2011, 6:47 PM
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Interest is always estimated, so you can never be 100% sure.

With Egg, they informed me once, my mimimum payment wasn't going to cover the interest to stop me going over my limit. That was enough to shock me into getting together 400 to make sure I was well under my limit. It appears Vanquis don't do this for their customers.

You might have to speak to Vanquis and ask them how much you need to pay to cover the interest that is going to be added.

There is a large thread on Vanquis in the credit card section maybe post to that as well.
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# 8
ganonman
Old 08-04-2011, 6:48 PM
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I had a similar thing happen with my Tesco's CC. I think it can be caused by you changing you payment date so your minimum payment and interest being added are no longer in sync.

What I recommend is always keeping an eye on your estimated interest for the next month and make sure there is alway at least that amount of credit available after your minimum payment is taken.

If you aren't that organised, see if they can do anything with your payment/statement dates to try and stop it happening as anyone that works there should know what causes it to happen.

Sorry if I'm a little vague, I don't have my statements in front of me.
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Last edited by ganonman; 08-04-2011 at 6:49 PM. Reason: Missed something
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# 9
intranicity
Old 08-04-2011, 6:54 PM
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Silent killer

you've made lots of mistakes by the look of your signature...

Vanquis and the other cards you have charge massive amounts of interest, the ideal thing with these cards is to pay off the balance in full every month, then they are free, but looks like you're maxing all your cards, not surprised you need a loan mate.

What are the APR's on each of the cards? You need to pay much more than the minimum payment on this type of credit, it's not much cheaper than payday loans the way you're using them
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# 10
silentkiller
Old 08-04-2011, 6:55 PM
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I don't know the exact APRs but they are between 36-39%.
I may be in debt but I do have lots of pretty things
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# 11
intranicity
Old 08-04-2011, 7:00 PM
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Quote:
Originally Posted by silentkiller View Post
I don't know the exact APRs but they are between 36-39%.
Get your statements out and look, MY VANQUIS CARD IS 59.9%.....

Get your rates and balance's and we can give you some idea of what the minimum payment should be and how much interest you're likely to be paying
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# 12
silentkiller
Old 08-04-2011, 7:09 PM
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its 39.9%. At the moment the balance is 498.84
I may be in debt but I do have lots of pretty things
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# 13
YorkshireBoy
Old 08-04-2011, 7:36 PM
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Quote:
Originally Posted by silentkiller View Post
its 39.9%. At the moment the balance is 498.84
If it stays this way you're going to be over your limit again on your next statement date when they add the interest.
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# 14
intranicity
Old 08-04-2011, 7:57 PM
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Quote:
Originally Posted by silentkiller View Post
its 39.9%. At the moment the balance is 498.84
Minimum payment (3.5%) would be about 17 a month on that balance.

BUT, doing this would mean that if you Just paid the minimum every month

It'll take you 511 months (that's over 42 years) to pay back 500 if you only pay the required minimum of 3.50%. Over that period of time, you'll pay an additional 4,215.47 in interest.

If you could aford to pay an extra 10 a month towards your credit card debt, it would mean you'd repay it in 43 months (just over 3 years) and you'd save yourself 3,869.63 in interest. In fact, if you could aford an extra 25 a month, you'd repay it in 19 months and save 4,073.67.

Totals (paying minimum of 3.50% per month):
Original debt 500.00
Time to clear debt 511 months
Interest charged 4,215.47
Total paid 4,715.47
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# 15
silentkiller
Old 08-04-2011, 10:34 PM
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I am going to spend 50 a month on each of my credit cards (Perhaps more on the 1000 one).
I may be in debt but I do have lots of pretty things
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# 16
Saints2011
Old 09-04-2011, 5:19 PM
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You need to clear these cards quickly
Can I find out my credit score?
You do not have a single credit score or rating. Different organisations take different information into account when working out your credit score and may have different scores for different products. (Kindly from Experian)

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