What's so bad about "Rate for Risk"?

speedbird1973

You are free to shop around.

Getting a different card from the one you expected is no different from being declined. The fact the card has been issued won't show on your record for a while. It's only the search that is real time.

I seem to get offered less than the standard APR usually, I don't see an issue with a rate for risk policy so long as the alternative card you receive has the T&C clearly marked.

Rabiddog_2

The terms and conditions on any credit card are contained in a Micro dot that James Bond (and Q) would have difficulty deciphering. Fairness, Lucidity and plain English feature with none of these companies.

speedbird1973

I have little trouble understanding the T&C.

I'd suggest a lack of reading creates more problems than misunderstanding them.

nzseries1

speedbird1973 wrote: »

You are free to shop around.

Getting a different card from the one you expected is no different from being declined. The fact the card has been issued won't show on your record for a while. It's only the search that is real time.

I seem to get offered less than the standard APR usually, I don't see an issue with a rate for risk policy so long as the alternative card you receive has the T&C clearly marked.

That was the case with my flatmate. It said quite clearly "Unfortunately we can't give you the card you requested, but if you want it, we have an Initial Barclaycard for you with an APR of 24.9%." The APR was in bold and big letters, and the letter made it clear there wouldn't be an additional credit check.

speedbird1973 wrote: »

I have little trouble understanding the T&C.

I'd suggest a lack of reading creates more problems than misunderstanding them.

I was initially going to blame people for not reading the T&Cs as well, but then I realise that most people aren't as clued up on credit cards as us lot

I still think that as long as it's clear in the literature, then rate for risk is okay.

Moggles_2

speedbird1973 wrote: »

I have little trouble understanding the T&C.

Well, you haven't grasped the meaning of "standard APR" from the looks of things

Originally Posted by speedbird1973
I seem to get offered less than the standard APR usually.

Outside special promotion periods, the APRs you're handed, whatever they happen to be, are your standard APRs, not the rates that are standard.

Perhaps you're usually offered lower standard APRs than those that are typical for your lender?

Moggles_2

speedbird1973 wrote: »

I don't see an issue with a rate for risk policy so long as the alternative card you receive has the T&C clearly marked.

Don't you? If you signed up for a product on the basis of certain advertised benefits and believed everything had proceeded satisfactorily then, without warning, an inferior product was delivered, wouldn't you feel short-changed?

Moggles_2

speedbird1973 wrote: »

You are free to shop around.

Currently, we can vote with our feet, but if competitors see that this strategy helps to build a customer base, the idea could spread.

clio

speedbird1973 wrote: »

I have little trouble understanding the T&C.

I'd suggest a lack of reading creates more problems than misunderstanding them.

Well thats because you're a rocket scientist with a masters degree in snide replies..

nzseries1

Moggles wrote: »

Don't you? If you signed up for a product on the basis of certain advertised benefits and believed everything had proceeded satisfactorily then, without warning, an inferior product was delivered, wouldn't you feel short-changed?

But the thing is, with a flight, or whatever "product" you're buying, you're actually paying for it. You are actually losing money if you don't get the benefits.

Here, you are making an application where you know that whether you get accepted or not, then you still have to "pay" by having a credit search on your profile, and you know this before you apply. Since this credit search happens even if you're declined, you're no worse off if you get offered an alternative card.

speedbird1973

I'm sorry Moggles, but whether I used the term standard or typical doesn't make either of us any more right or wrong.

It says quite clearly that if they can't offer what you want they may offer you an alternative product. That's what you sign up to.. you can't selectively sign up to certain parts of an agreement.

As for your comment Clio.. what's snide? I read and understand the terms and condictions placed before me and don't agree to anything until I do. You also know I'm right that most people fall foul of not reading T&C rather than not understanding them.

How many "MBNA have put my interest rate up.. can they do this?" or "I did a balance transfer and then paid for a holiday and I'm paying interest now.. can you believe it?" or "I couldn't be bothered to pay my bill on time this month, they've removed my interest free period.. surely this isn't legal" posts appear here every week. I'm not being snide Clio, merely putting an opinion forward.. Quite probably the correct opinion too!