RISE VISA CARD Full balance payment help!!!!! Please!!!

Garzi21

Hi everyone,

I have a rise visa card with limit off £300.
Can anyone help me with understanding the repayments. I've opted to pay the full amount off every month.

Now when I first read it, I understood that if I used the full £300 then I would pay £330. Is this correct?

After reading the terms and conditions again I came across this

"Total amount payable
The total amount of credit (based on utilisation of the credit limit of £300) plus total charge for credit payable under the agreement, is £630. This is an illustrative figure only."

If I'm reading this correctly and not being incredibly stupid (which I hope I am being) then if I have a balance of £300 every month. My payment each month will be £630??

Please tell me I'm reading it wrong.

Thanks for your help

john1002

No its ok the terms as with most credit cards show a 12 month period as I think they are required to, as such the amount you see will be that if you would pay 630 on a 300 balance over 12 months.

your statement will clearly show your monthly minimum payment, as long as you pay your blance off every month then you wont incur any interest so will only pay the balance whatver that will be.

HTH

John

JimmyTheWig

You've read it right the first time, OP.

John talks about the way most credit cards operate in that you pay no interest or charges if you pay the balance in full each month. With this card that's not the case.

But John is right that the figure quoted is if you repay the credit over 12 months. They'll charge 11 lots of £30 so you'll repay the £300 you borrowed plus £330 in charges, meaning you repay £630 in total.


I presume that this is the only credit card that you can get. I presume that you've checked your credit report for any errors. I presume that you want to pay these fees each month in order to rebuild your credit rating. If not, I doubt that this is the best card for you.

dzug1

Yes but this card has a monthly fee in lieu of interest. It's not clear (to me) if it's levied on the amount before (£300 so £30) or after the monthly payment (nil, so £3.50 fee)

It's really not a good card to have - better off without one if it's all you can get.

SnowTiger

dzug1 wrote: »

Yes but this card has a monthly fee in lieu of interest. It's not clear (to me) if it's levied on the amount before (£300 so £30) or after the monthly payment (nil, so £3.50 fee

I've had a quick scan through the T&Cs and it appears that the fee is based on the balance of the account when the monthly statement is produced.

So, a customer could spend, say, £300 on their card but providing the balance is paid off before their statement is produced they'd only be hit with the £3.50 monthly maintenance charge.

https://www.risecredit.co.uk/application/test2TCs15100.pdf:

1. Monthly balance charge:-

One of the following charges will apply to any balance on the Account that is within the relevant range at the end of each monthly Account cycle:

Balance (range) Monthly charge

£0.01 - £100 £15
£100.01 - £200 £30
£200.01 - £300* £45

* If your credit limit increases in accordance with clause 2 of Other Terms and Conditions the monthly charge will increase in accordance with the above sequence.

2. Monthly Account maintenance charge:-

In the event that there is no balance on the Account at the end of a monthly cycle, there will be a maintenance charge of £3.50.

JimmyTheWig

SnowTiger wrote: »

So, a customer could spend, say, £300 on their card but providing the balance is paid off before their statement is produced they'd only be hit with the £3.50 monthly maintenance charge.

But I would have thought that the chances are this would show up on a credit report as not being used.
Given that I can only assume someone would have this card to build their credit rating, I'm not convinced of the point of this strategy.
[I'm not totally convinced of the paying £30 a month in fees strategy, either, but I can see why some people would want to.]

CLAPTON

SnowTiger wrote: »

I've had a quick scan through the T&Cs and it appears that the fee is based on the balance of the account when the monthly statement is produced.

So, a customer could spend, say, £300 on their card but providing the balance is paid off before their statement is produced they'd only be hit with the £3.50 monthly maintenance charge.

https://www.risecredit.co.uk/application/test2TCs15100.pdf:

presumably they have to pay in full AND not use the card anymore otherwise their balance when the statement is produced won't be zero


basically an absolutely rubbish card only for desperate people

Garzi21

Thanks for your responses everyone. It's not the best card in the world but I need to build my credit up. Had a bad year a few years ago and ruined my credit.

Thankfully I have been accepted for this card and the granite vanquis card. I'm gna use them for small payments and bay in full every month. Hopefully this will help me build bk up my credit.

I hope :S

CLAPTON

the granite card makes some sense as if you pay in full each month you pay no interest and no fees


the rise card makes no sense as it costs you even if you don't use it at all; get rid of it.

Garzi21

Believe it or not I never looked at it like that. Thanks Clapton.

Just on a quick divert from the subject. Has anyone got any idea how long it will take to go from a poor rating to average or good. If you pay everything on time.

Oh and is it better to pay the full balance or close to it? Not for interest reasons but for credit building purposes

Cheers

CLAPTON

Garzi21 wrote: »

Believe it or not I never looked at it like that. Thanks Clapton.

Just on a quick divert from the subject. Has anyone got any idea how long it will take to go from a poor rating to average or good. If you pay everything on time.

Oh and is it better to pay the full balance or close to it? Not for interest reasons but for credit building purposes

Cheers

depends upon why you have bad credit and what your credit files say

as for the rise card close it and stop wasting money on monthly fees