Vanquis?

themightyo

Can someone explain Vanquis CC interest to me please?

I took the card out with 39.9% APR due to having zero credit history and they were the only people who'd have me.
Just phoned them now after a statement, my APR has apparently gone up to 69.9% and on this month's balance, despite stating that my monthly rate is 4.519% they're charging me just under 8%. Customer services claimed I wouldn't understand their interest charging mechanism and that the charge is correct.

What gives?

[Deleted User]

How are you calculating the 8%? Does it include fees, other charges?

themightyo

Just based on the current balance. No charges cos I hardly ever use the card. I have never gone over the limit, never missed a payment, etc.
There is an estimated minimum payment for next month on the bottom of the statement. This figure seems correct, but how can that one be right and this one be so wrong? I've not even touched the card since July.

My major bugbear is that the minimum payment is less than the interest charges. I keep on top of these things, and I pay an extra amount off the card every month anyway, but it just seems so devious and underhand. I'm sure there are people out there who think they're paying off the card, never missing payments etc., and yet are getting worse and worse in debt due to this kind of practice.

BugsyBrowne

themightyo wrote: »

Just based on the current balance. No charges cos I hardly ever use the card. I have never gone over the limit, never missed a payment, etc.
There is an estimated minimum payment for next month on the bottom of the statement. This figure seems correct, but how can that one be right and this one be so wrong? I've not even touched the card since July.

My major bugbear is that the minimum payment is less than the interest charges. I keep on top of these things, and I pay an extra amount off the card every month anyway, but it just seems so devious and underhand. I'm sure there are people out there who think they're paying off the card, never missing payments etc., and yet are getting worse and worse in debt due to this kind of practice.

There typical APR they state is 39.9% but the average vanquis customer is actually paying around 50-60% APR

NekoZombie

I've heard that they always quote the simple rate of interest 39.9% on paperwork rather than the APR which is compounded and therefore much higher. I may be worng of course....

BugsyBrowne

NekoZombie wrote: »

I've heard that they always quote the simple rate of interest 39.9% on paperwork rather than the APR which is compounded and therefore much higher. I may be worng of course....

Yes that is defiantly correct.

PNPSUKNET

I would advice paying it in full every month, its a credit builder not a debt builder.

KingElvis

PNPSUKNET wrote: »

I would advice paying it in full every month, its a credit builder not a debt builder.

Exactly, anyone actually considering the interest and what it costs should steer clear, it's huge.