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Incorrect APR?
Burnley_Lad
Posts: 277 Forumite
in Credit cards
My credit card interest free period for purchases ends soon, and I was surprised to discover that when it does end, the APR will be 19.9%, the highest rate they can offer!
I regard myself as having a good credit history, always made payments on time, in fact I have a mortgage with the company concerned, with no missed payments at all. Why would I have been offered the top rate then? Is this something that can be looked at, and addressed? Yes, it could be argued that when I signed up for the card, I would have been aware of it, but it didn't occur to me at the time that I was offered the highest rate they could offer!
I regard myself as having a good credit history, always made payments on time, in fact I have a mortgage with the company concerned, with no missed payments at all. Why would I have been offered the top rate then? Is this something that can be looked at, and addressed? Yes, it could be argued that when I signed up for the card, I would have been aware of it, but it didn't occur to me at the time that I was offered the highest rate they could offer!
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Comments
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They'll have told you the APR when you were accepted.
It's not a particularly high rate. But you could try asking them to lower it. However, this could ring some bells that you anticipate having payment difficulties.
They'll have given you that rate on their perceived risk of you.0 -
Yes, I accept that I would have been told the APR when I was offered the card, and yes, I accept that I accepted it.
However, something doesn't seem right - I have been offered their lowest rate by another credit card company with whom I have had no financial link with previously, yet the company who I have my mortgage, current account, savings account and insurance with offer me their highest rate?0 -
rates can change at any time although 19.9% isn't particularly high.
if it concerns you then presumably you are struggling financially?
which card is it?EU tariff on agricultual product 12.2%
some dairy products 42.1% cloths 11.4%
EU Clinical Trials Directive stops medical advances0 -
Different appetites for risk. Different customer demographics. Different commercials. Different cost of funding.
All lenders play it differently. Some will decline you outright.0 -
rates can change at any time although 19.9% isn't particularly high.
if it concerns you then presumably you are struggling financially?
which card is it?
So 19.9% isn't particularly high then? It is 9.9% on my other card.
I am not struggling financially at all - I am just surprised that I have been given the top rate, when I know I have a good credit rating.0 -
You may think you have a good credit rating. Experian (if that's who told you) may think you have a good credit rating. The people who gave you the 9.9% APR card may think you have a good credit rating.Burnley_Lad wrote: »I am just surprised that I have been given the top rate, when I know I have a good credit rating.
However, the people who gave you the 19.9% APR card clearly don't think it's as good as all the other people, for the reasons given by zx81 above.
May I ask...are you carrying a balance now from your 0% spend or have you cleared it?0 -
If everybody offered the same rate we'd have a rather uncompetitive market.0
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Burnley_Lad wrote: »I am not struggling financially at all -
Just pay the balance off before the promotional rate expires.....that will save you paying the interest.0 -
Depending how much you pay 9.9% isint to much different to 19.9%
£2000 balance at £400 a month at 19.9% will cost you £95 interest.
£2000 balance at £400 a month at 9.9% will cost you £48 interest."You know when it's cold outside when you go outside and it's cold"0 -
Another provider may offer a cheaper rate to attract your business. It ,ales sense that your current provider wants to make money out of you, especially after funding a 0% period.
I doubt it has anything to do with your credit rating. They're just hoping you can't or won't move the debt so they'll finally make some money from you. Other lenders may offer you a BT in order to get your business.I'm a qualified accountant but please make sure you get expert advice as any opinion is made in a private capacity.
"A goal without a plan is just a wish" Antoine de Saint-Exupery
Mortgage overpay 2012: £10,815; 2013: £27,562
Mortgage start £264k, now £232k0
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