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Unbelievable... 39.9% APR!

I have no idea how these people stay in business...

In yesterday's post, I was unlucky enough to get an application form (with my name and address already filled in, no less) from VANQUIS CARD inviting me to apply for their "new" visa card, with all the bells and whistles...

No 0% offer, no cashback, and a whopping 39.9% APR! This when the lowest CC rates are around 6-ish%, and the "norm" around 14%...

Anyone who has an idea how this is possible? I'm not sure it should even be legal!

Anyway... obviously, avoid like the plague

-- Mike
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Comments

  • I received one of these about a year ago, so they must be making money & able to stay in business due to some fools or just deperate people applying! IIRC cash advances were something like 55% APR.

    My application form went in the bin.
  • thesaint
    thesaint Posts: 4,324 Forumite
    Part of the Furniture Combo Breaker
    mee wrote:
    I have no idea how these people stay in business...

    In yesterday's post, I was unlucky enough to get an application form (with my name and address already filled in, no less) from VANQUIS CARD inviting me to apply for their "new" visa card, with all the bells and whistles...

    No 0% offer, no cashback, and a whopping 39.9% APR! This when the lowest CC rates are around 6-ish%, and the "norm" around 14%...

    Anyone who has an idea how this is possible? I'm not sure it should even be legal!

    Anyway... obviously, avoid like the plague

    -- Mike

    Before posting you should have read the thread titled "Vanquis visa card" on the same page as this one
    Well life is harsh, hug me don't reject me.
  • For some, these type of cards are the only ones that'll be offered.

    If you have poor or no credit history and you can be 100% sure you'll pay all the balance off at every bill, it can be a way to (re)build your credit.

    As you say, you wouldn't want to use it if you were accruing credit charges each month.
    Dave. :wave:
  • bert&ernie
    bert&ernie Posts: 1,283 Forumite
    This is a sub-prime product. Its targeted at people who have previously had credit problems and who are unlikely to be accepted for mainstream products.

    The rate reflects the risk that the lender is taking on.

    Obviously, you would be foolish to take out one of these cards is you could get a better rate. The point is that most of their customers cant. 40% is not uncompetitive in this market segment.
    The whole problem with the world is that fools and fanatics are always so certain of themselves, but wiser people so full of doubts.
  • Vanquis keep sending me these aswell. I think there is an alternative card to the Vanquis 39.9% which is also a Vanquis at 49.9%!!!! I ripped mine up as soon as seeing it was a card application. They can whistle for my custom!
    "Life may not always be the party you wish for, but whilst here you may aswell dance"!!!
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  • tom188
    tom188 Posts: 2,330 Forumite
    Well I said yesterday that it had been a while since we'd had a self righteous thread such as this and then two appear within 24 hours.
    http://forums.moneysavingexpert.com/showthread.html?t=368444

    People should do some research into the card before making reactionary ill informed daily mail comments.

    There is a reason why the rate is so high is because the company will lend to more risky people who are more likely to default.

    If you pay off in full you will never pay the interest. The card is a lifeline for people who want to rebuild their credit history.

    If youve got a good record you will get a better rate - fine, the card is not aimed at you.
  • moneyuser
    moneyuser Posts: 1,085 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Vanquis must be doing a mass mailshot, so I would expect more of these types of posts :rolleyes:
  • tom188
    tom188 Posts: 2,330 Forumite
    Sounds like it, oh how I look forward to it.
  • Astaroth
    Astaroth Posts: 5,444 Forumite
    I personally would be more concerned that I was on a sub prime mailing list than what the mailing actually said. Can thankfully say that I have never received a mail shot from Vanquish
    All posts made are simply my own opinions and are neither professional advice nor the opinions of my employers
    No Advertising or Links in Signatures by Site Rules - MSE Forum Team 2
  • Shock, horror, disgusting, how do they get away with it.

    Come on, if you see a life grab it.

    No one is forcing anyone to apply.

    If you don't like it, bin it.
    Don't lie, thieve, cheat or steal. The Government do not like the competition.
    The Lord Giveth and the Government Taketh Away.
    I'm sorry, I don't apologise. That's just the way I am. Homer (Simpson)
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