Why am I getting charged double the "typical" APR?

sh856531

Hi guys,

I'm having a bit of an issue with MBNA at the moment. I don't really use my credit card very often - and when I do it tends to be for large purchases that I then pay off very quickly - usually immediately or over 2 months max.

I happened to notice recently though that the current APR I'm getting charged is something like 29%. When I looked at the typical APR advertised on the site I was shocked to discover its more like 16%.

So its !!!!ing me off that I'm getting charged nearly *double* what the "typical" person is apparently getting charged. I don't understand how this can be the case because I would have thought my credit factors would be considerably better than the "typical" customer:

- I earn well above the average UK salary
- I have relatively low amounts of personal debt and some savings
- The last time I checked my credit score was "excellent" according to experian (about 3 months ago)

The only thing I can think of is the fact that I tend to pay the balance off very quickly

Can anyone tell me - is this likely to be the reason why they are charging me essentially *double* what joe average is apparently getting charged?

I've emailed them about it and they've said that they keep this under "regular review" - but that seems like total bobbins because the interest rate seems to be broadly the same as it was when I was a student 10 years ago (with an income of 7K a year) - despite now earning considerably more than that. Are they taking the !!!!?

Many thanks for your help

S

ironlady2022

The rate on website is typical and only applicable for new customers. As for the rise hike they are obliged to tell you the apr increase, maybe you've missed this somewhere? Mbna are notorious for increasing their rates after a low introductory offer. If you're credit file is ok go for a 0% purchase credit card if you have a large purchase coming up or alternatively you can go for a low rate for life credit card.

sh856531

mayling03 wrote: »

The rate on website is typical and only applicable for new customers. As for the rise hike they are obliged to tell you the apr increase, maybe you've missed this somewhere? Mbna are notorious for increasing their rates after a low introductory offer. If you're credit file is ok go for a 0% purchase credit card if you have a large purchase coming up or alternatively you can go for a low rate for life credit card.

Hi Mayling,

When you say they have a tendency to up the rate, would this apply to something they are advertising as their "typical" rate? Because there's nothing on the site to say that that rate is a special introductory offer. So if I applied for the card, got it and they then bumped me up to 30%, I would be quite irked!

Thanks

S

Typhoon2000

Yep thats about the jist of it. The typical rate is what a typical (2/3rds) new applicant gets. The typical rate for existing customers is much higher.

CLAPTON

well
as you rarely ever pay interest why does it matter?
and maybe be realistic and note that it's been observed about a million time a day that 'loyalty for financial companies' is about 30 years out of date.

scottishblondie

Don't think you can link a higher APR to paying it off too quickly - I never allow interest to accrue on my CCs and my highest APR is 19.9%, which is on a student credit card that's had the same rate since I was 18. Credit card APRs are variable, so it's possible that at some point since you took out the card they've upped the rate and you haven't noticed.

Vote with you feet and get yourself a card with a lower APR.

opinions4u

Are they taking the !!!!?

Yes.

Take your business elsewhere.

It really is that simple.

YorkshireBoy

sh856531 wrote: »

Can anyone tell me - is this likely to be the reason why they are charging me essentially *double* what joe average is apparently getting charged?

MBNA themselves should be able to tell you...

http://www.mbna.co.uk/principles_sp/principles_vm.html

Just refer them to 'principle 5'.