Aqua Credit Card

coxy17

This morning a letter came through my door from Aqua including an application for their credit card. I had a quick look to see if they were offering something that might be of use to me.

That's when I read the interest rate for purchase - 35.95%

I nearly fell off my chair! That should be illegal!

chanz4

better than vanquis I suppose, capital one progress starts the same then goes down to 17.9 after 2 years

Tixy

Plenty of people post on MSE with mainstream cards that now have APRs of nearly that rate - lots of MBNAs, HSBCs at 29.9% etc, and often people have very large balances on these cards

Still an aqua card can still be of use to people in building up a credit history and especially if they pay in full each month.
And in an emergency a card like this to fall back on at these sort of rates is far better than having to resort to payday loans.

Atom

I couldn't give a rats a** about interest rates i pay off in full - they take on risky individuals who have mucked up before so i would say it's pretty fair !

sharpy2010

Atom wrote: »

I couldn't give a rats a** about interest rates i pay off in full - they take on risky individuals who have mucked up before so i would say it's pretty fair !

Yep, definitely a fair comment! And I've got one of these sub prime cards. For giving people a second chance, its fab! People who moan about them perhaps don't know who they are for..?

paulmcerlean

coxy17 wrote: »

This morning a letter came through my door from Aqua including an application for their credit card. I had a quick look to see if they were offering something that might be of use to me.

That's when I read the interest rate for purchase - 35.95%

I nearly fell off my chair! That should be illegal!

Why? It's a card aimed at those with no history or those with a poorish past history who are trying to improve. Its a better rate than Vanquis, albeit a harder card to get.

And with the amount of people posting on here about 4-5K balances on HSBC, MBNA cards etc where the rates have been jacked to 30%, it's not so bad.

Pay off the balance in full and it's irelevent.

Getting an Aqua card when I had limited credit history has enabled me to get a prime card from Lloyds at less than half the Aqua APR. They serve a very valuable purpose if used correctly.

I suggest you get back on your chair and look at the bigger picture.

coxy17

I guess they do have a use but would it not be more sensible to offer people with a bad history a lower interest rate paired with a lower limit? I'm just curious to be honest. It's not a card I would apply for but I still think a card like this could do more damage than good in the wrong hands.

That said, any card could.

[Deleted User]

The limits start very low on these cards - about £250. If someone can't handle a £250 limit from a lender who's prepared to give them a second chance when few others will, I think they're probably a lost cause.

System

wouldn't they need to run a credit check on people to find that out? these are all sent out to random people. I got the same letter

I also got an offer for a barclaycard platinum, but I'm not even old enough to apply! as soon as I put my age in on the application form online it says "sorry you're not old enough"

[Deleted User]

LooieENG wrote: »

wouldn't they need to run a credit check on people to find that out? these are all sent out to random people. I got the same letter

I also got an offer for a barclaycard platinum, but I'm not even old enough to apply! as soon as I put my age in on the application form online it says "sorry you're not old enough"

They won't be random people. I don't think anyone's done that since the Cap One big spending days. It'll be some bought list of likely suspects I would imagine.

paulmcerlean

coxy17 wrote: »

I guess they do have a use but would it not be more sensible to offer people with a bad history a lower interest rate paired with a lower limit? I'm just curious to be honest. It's not a card I would apply for but I still think a card like this could do more damage than good in the wrong hands.

That said, any card could.

No as low APR is linked to low risk customers. Why would you reward someone with no proven credit history or a poor background with a low APR as you would someone with a pristine record?