I've done something VERY stupid!!!

thesnowdog

Decided to give Bonus Bagging a go and used my Vanquis credit card. Withdrew £230 and deposited £240. Should have been 40 quid more but I made a !!!! up.

What I didn't realise is that Vanquis treat gambling as Cash Transactions which has a higher rate of interest (42.9%) and I think they charge this daily if I'm not mistaken..?

My current balance is £1331.40 at 34.9% and a £3000 limit. I'm currently unable to work due to bad health and am receiving ESA, so thought this Bonus Bagging would be ideal to pay off my credit card debt a great deal quicker, but if they charge interest daily then I'm well and truly stuffed!!!

Any idea on what I can do..? I've worked hard in getting my credit rating back up to Low and this is really going to mess things up. Any idea of what they're going to charge me in interest every month and how much the minimum payments are going to be..? I'm getting very worried about this - one minute I was looking at making £20-40+ profit per day and now I'm looking at financial oblivion!

chattychappy

Well, 42.9% is about 3% per month. (3% x 12 doesn't equal the APR because the 3% compounds.)

So on the £230, that's about £6.90/month.
The £1331.40 at 34.9% APR is about £33.30/month.

Remember, repayments you make will be applied to the higher rate balance first (though that might be subject to the transaction already appearing on a statement).

I don't know how Vanquis works out its minimums or any other issues you should consider. No doubt others will advise.

You're a brave man for admitting what you've done - stand by for a few comments!

YorkshireBoy

thesnowdog wrote: »

Decided to give Bonus Bagging a go and used my Vanquis credit card. Withdrew £230 and deposited £240. Should have been 40 quid more but I made a !!!! up.

So you've a £240 cash transaction?

What I didn't realise is that Vanquis treat gambling as Cash Transactions

That's probably because you haven't read your T&Cs.

which has a higher rate of interest (42.9%) and I think they charge this daily if I'm not mistaken..?

42.9% is most likely your annual rate (the giveaway is the 3 letters which follow the rate...APR, with A standing for annual).

My current balance is £1331.40 at 34.9% and a £3000 limit. I'm currently unable to work due to bad health and am receiving ESA, so thought this Bonus Bagging would be ideal to pay off my credit card debt a great deal quicker, but if they charge interest daily then I'm well and truly stuffed!!!

The higher rate is only charged on the cash element, and is paid off first with any credits you make to the account, so possibly not as big an issue as you think.

Any idea on what I can do..?

You've repaid £230 already haven't you? Just pay the shortfall and you've done with it...barring a bit of residual interest.

I've worked hard in getting my credit rating back up to Low

Making regular cash transactions is going to trash your credit rating (at least with Vanquis) very quickly.

Any idea of what they're going to charge me in interest every month

Just over 3% of the cash transaction (which is only £10 if I've understood your OP correctly)...so pennies?

and how much the minimum payments are going to be..?

Your minimum payment calculation options are shown in your T&Cs, but budget for around 5% of the total balance on the card.

I'm getting very worried about this - one minute I was looking at making £20-40+ profit per day and now I'm looking at financial oblivion!

If you don't understand how credit cards work you'd be better to put any more bright ideas you have on here so that others may advise you beforehand.

Rupert_Bear

Are these people for real. I just do not understand how they get a card the first place.

Credit is fine provided you are sensible but so many people are not.

thesnowdog

Thanks everyone, not as bad as I thought. But isn't the interest on cash transactions daily..? I've no problem with the higher interest rate on the cash transactions but am worried about the interest being added daily instead of once per month.

Am going to carry on with Bonus Bagging because it's an easy way of earning money, might have to switch to PayPal perhaps to avoid any further problems with cash transactions with my credit card.

HappyMJ

thesnowdog wrote: »

Thanks everyone, not as bad as I thought. But isn't the interest on cash transactions daily..? I've no problem with the higher interest rate on the cash transactions but am worried about the interest being added daily instead of once per month.

Am going to carry on with Bonus Bagging because it's an easy way of earning money, might have to switch to PayPal perhaps to avoid any further problems with cash transactions with my credit card.

Interest is calculated on each days outstanding balance but only debited once per month.

mynameistallulah

thesnowdog wrote: »

Am going to carry on with Bonus Bagging because it's an easy way of earning money, might have to switch to PayPal perhaps to avoid any further problems with cash transactions with my credit card.

No, "bonus bagging" when done properly is not easy, as you have demonstrated. If you do want to do it, you need to start again from the beginning, and only ever do it with money you can afford to lose i.e. not credit.

thesnowdog

It is easy mate. If I hadn't messed things up I would have been £50 up after 2 days. The only thing that's a problem is the bookies being so slow to pay the winnings when you transfer them. 3-5 days is ridiculous tbh.

I've learnt from the mistake I made anyway so won't be doing that again.

mynameistallulah

thesnowdog wrote: »

It is easy mate. If I hadn't messed things up I would have been £50 up after 2 days. The only thing that's a problem is the bookies being so slow to pay the winnings when you transfer them. 3-5 days is ridiculous tbh.

I've learnt from the mistake I made anyway so won't be doing that again.

Can you not see the contradictions?

However "easy" you think it is, you should not be risking anything that you cannot afford to lose. What happens if the bookmaker goes bust, or voids one of your bets?

HappyMJ

thesnowdog wrote: »

It is easy mate. If I hadn't messed things up I would have been £50 up after 2 days. The only thing that's a problem is the bookies being so slow to pay the winnings when you transfer them. 3-5 days is ridiculous tbh.

I've learnt from the mistake I made anyway so won't be doing that again.

Rule number 1 is never to use money you cannot afford to lose and using borrowed money has never ever been recommended.

BugsyBrowne

Rupert_Bear wrote: »

Are these people for real. I just do not understand how they get a card the first place.

Credit is fine provided you are sensible but so many people are not.

Agree it's no different to some people who go bankrupt, as soon as they get discharged they then look for the easiest credit cards to be accepted for and how quick their credit ratings go up, don't think they cared that much for their credit ratings when they were racking up debts they knew they had no intentions of paying back.