Vanquis huge rate hike when I started Snowballing

moneysavingmatt

Morning all,

Looking for some advice..

I was foolish enough to take out a Vanquis card in an attempt to get a bit of a better credit rating but after upping my limit again and again found myself tempted and have sat at the around the maximum balance (£3k) for around 12 months with me only making the minimum payments pretty much every month

I realise it is foolish and have started snowballing thanks to the excellent advice on these boards.. last month (nov) I managed to save up and put £500 onto the card taking the balance down from like £2600 to £2190ish after the interest was paid.

On Xmas Eve I received a letter saying they were upping my rates from 39.9% to 59.9% (65% for cash)

I've read through Martin's fight unfair rate jacking article but I am scared to just refuse the increase as I do not have £2100 lying about to pay in full and do not believe I would get any additional credit.

What are my options should I speak to Vanquis? The ombudsman?

Muscle750

I was of the opinion that cc companies give you the option to close the acct with the rate remaining the same and obviously you carry on as you are yet you can't use the card both Barclaycard and MBNA tried this with me and I closed the accts with no problem

opinions4u

It's a variable rate. They can vary it.

You displayed high risk behaviours, so they've upped your rate.

You should be able to reject the increase, stop using the card and pay down the debt by paying minimum payment or more. By the sounds of it, this would do you a favour.

Don't seek out any new credit. Spend less.

stephane_2

You would not have to pay in full....by refusing the increase you would still have to pay at least the minimum monthly payment at your current rate but you will not be able to use the card ever again....

_Andy_

you chose a variable rate product. They have varied it.

Smurf13

I don't have experience of Vanquis but I had similar letter from my Mint card, informing me that they were raising my interest rate. I phoned them to ask them to close the account and was told that I could continue to pay the payments at my current interest rate. I also got put through to the retentions department and they have lowered the interest rate on my WHOLE balance for 6 months.

Good luck

System

Phone them, reject the increase and they will take away your ability to use your card further.

moneysavingmatt wrote: »

Morning all,
On Xmas Eve I received a letter saying they were upping my rates from 39.9% to 59.9% (65% for cash)

I've read through Martin's fight unfair rate jacking article but I am scared to just refuse the increase as I do not have £2100 lying about to pay in full and do not believe I would get any additional credit.

What are my options should I speak to Vanquis? The ombudsman?