Worst Credit card deal ever??

mackin

I got some junk mail this morning offering me a new credit card with what must be the worst deal ever.

Vanquis credit card - 49.9% typical apr - from 32.9% to 59.9% variable on purchases!!!!! - all this for an annual fee of just £19

Apparently this is a card to help you build your credit rating - surely you are more likely to get into trouble with this kind of interest being tagged on to it?

Anyone got higher rates than this?

Stu

mountainofdebt

well I didn't realise until a few days ago that I was paying 24% on my mbna card. When I complained they saiod they could only reduce it to 22%.

So I transfered the balance to another card for 7.9%.

Needless to say I've signed up for martin's tart alert!

Fatboy_NSS

The annual fee is taken into account in the APR, so actually the interest rate isn't as high as 50%. The Vanquis card clearly isn't for everyone, but for someone who doesn't qualify for a card anywhere else but needs a Visa card then it could be a good deal.

Walletwatch

Got one of those in the mail last week - made me sound like vermin - will improve your credit rating and stuff like that - for an annual fee of £50!!! and a royal "pre-approved" credit limit of £500!!!

mackin

Fatboy_NSS wrote:

The annual fee is taken into account in the APR, so actually the interest rate isn't as high as 50%. The Vanquis card clearly isn't for everyone, but for someone who doesn't qualify for a card anywhere else but needs a Visa card then it could be a good deal.

I have read the small print for this 'deal' and it says the annual fee is not included in the APR. The APR's are on a sliding scale depending on what credit limit they give you. £150 is 59.9% down to 22.1% for £2000.

It seems to me if someone is a high credit risk why do they try to make it harder for them to keep up woth repayments by charging higher interest?

alanrp123

I too have had their junk mail through the post, and I cannot believe that anyone is desperate enough to take up their oh so GENEROUS offer.
My advice would be to put the application form where it belongs, IN THE BIN!!!!!!!!!!!!!!!!!!!

ukric

We were having a discussion about this at work, and it all boiled down to:

Question : Would you rather borrow money from Vanquis or a loan shark.

Not an easy one, I believe this is the choice it really amounts to if you are so uncreditworthy that no one else will lend you the money would you rather go for bankruptcy of have your unmentionables cut off.

I think it's plain wrong that a company offers credit to someone in that position. But I can't suggest another solution (other than to read this site)