Highest Rate CC - Is this it?

Anon

Having been on a run on 0% deals, I was tempted (:rolleyes: ) by an invitation for a Vanquis card. The features are:

Up to £2000 credit
Cut your interst rate over time again and again (!)
49.9% typical APR (based on typical credit limit of £250) :j
From 32.9% to 59.9% variable APR on purchases
All for an annual fee of £19 :T

Now I realise that this is aimed at people wanting to build up their credit rating and those who have had problems in the past, but personally I find it appalling that people who have obviously struggled in the past are being pushed interest rates at this level. You can be assured though, as they are regulated by the FSA and it is a Visa card.

Am I alone in thinking that these interest rates should not be allowed in any circumstances, given the low Bank of England interest rate? The couter argument may be that people don't have to apply for the card and Vanquis are helping people who couldn't otherwise get credit ...

Only an observation to balance our many discussions about 0% deals.

Anon

Fatboy_NSS

Remember though that there are people out there who don't have a perfect credit record . There are plenty of people who have been bankrupt or have CCJs who can't get accepted for any of the major credit card providers, but need to get some credit to get something good on their credit report. However the APR is high as this type of customer is more likely to default.

Cardinal-Red

It's a shame really when you think about it.

People on this board make a lot of money from their credit cards, and this is of course fair game. The flipside is people in this spiral of debt.

The horrible thing about these cards is that people who need them/apply for them are unlikely to be able to maintain a spend-and-pay-off policy for months on end to rebuild their credit rating. Then the APR gets truly crippling.

Also think the annual fee is a bit harsh - was starting to think that was a thing of the past!?

Martinslovechild

There's an article about Vanquis here which even suggests that borrowers it deems the highest risk will be offered a top rate of 69.5%!!!

I particularly like this article from an American website which suggests that the card is being offered to 'British peasants'!!!