Prime v Sub Prime %

EycplUK

Hi All , just wondered at what point the interest rate on a CC is deemed to be a Prime card rate as opposed to a Sub Prime CC ?
Regards

guesswho2000

Well, in my opinion 19.9% or less is a standard APR, 15.9% or less is very good for a credit card. I'd say 24.9% is half way and 29.9% or higher is a sub prime rate.

These are my opinions of course, CC companies will just do whatever they want anyway.

There are lots of supposedly prime cards (MBNA et al spring to mind) which start off nicely and increase to silly rates (my Virgin card started with a standard 10.9% and was 32.9% when I closed it, no missed payments, never over limit, just standard MBNA practice from what I've read).

Similarly, I have a Barclaycard Initial with an APR of 18.9% - I've had for years as it was the only one they offered to non-student under 21s at the time, they've lowered the APR but won't change the card unless I cancel/reapply. It started at 25.9% APR back in 2005, which I would deem fairly high risk, but is now what I would class as a pretty average APR.

BugsyBrowne

I still think the Sygma card range is slung up with sub-prime cards and rates as I remember someone getting sygma silver card with a 24.9% and £200 credit limit now if this is a prime lender them I am going run through Hampstead Heath with just my pants on.

19.9% below prime anything over this sub-prime.

simax

I got one Sygma card at 19.9% with a £4,000 limit and one with 16.9% and £2,000 limit. I wouldn't call that "sub prime"....

BugsyBrowne

simax wrote: »

I got one Sygma card at 19.9% with a £4,000 limit and one with 16.9% and £2,000 limit. I wouldn't call that "sub prime"....

I wouldn't call a company dishing out 25% apr's and £200 limits prime either so it's 50/50.