Great Champagne 'highest Apr' Credit Card Hunt!

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Comments

  • Reaper
    Reaper Posts: 7,279 Forumite
    First Anniversary First Post Photogenic
    ukdutypaid wrote: »
    Yes you've read that correctly 365.1% APR...
    I'm afraid you are behind the times. Not only is this competition years old but your figure has been well beaten by earlier posts in this thread. The best so far is 1734.1% APR which you can find here.
  • How about a loan for 2,639,385.9% APR?! :eek:
  • Mozette
    Mozette Posts: 2,247 Forumite
    How about a loan for 2,639,385.9% APR?! :eek:

    BL00DY HELL!!!!
    :eek: :eek: :eek: :eek: :eek: :eek: :eek: :eek: :eek: :eek: :eek: :eek: :eek: :eek: :eek: :eek: :eek: :eek: :eek: :eek: :eek: :eek:
  • Voyager2002
    Voyager2002 Posts: 15,270 Forumite
    Name Dropper First Post First Anniversary Combo Breaker
    How about a loan for 2,639,385.9% APR?! :eek:

    Ooh, yes please!

    Just so long as I am the lender.
  • How about a loan for 2,639,385.9% APR?! :eek:
    It suprises me how a company like that stays in business.
  • It suprises me how a company like that stays in business.

    Because gullible cash strapped people, (especially at this time of year) keep em in business.
  • Quite often people who are unable to borrow anywhere else. It would not surprise me to learn that this woman (who took out the loan) was on benefits - which are now paid, most unhelpfully, at 4-week intervals - and her December payday falls just after Christmas, meaning she could miss out on Christmas or borrow to have the money a week early and enjoy it. Likely she saw the £80 charge as worthwhile for having a great Christmas.

    It's easy to sit in our ivory towers - or forums! - and judge those who are prey to this sort of lending. It's also very frustrating when people don't understand what APR means.

    For instance, how many of us have paid car tax for 6 months? It's only 10% right? WRONG! Let's assume the tax is £100, but the result is the same, whatever the annual duty.

    You have to pay £55 anyway, so you're borrowing only £45 for 6 months - at a cost of £10 (because you'll need to pay £55 in six months' time).

    £10 as a fraction of £45 is 22.222% - but you're borrowing it for only six months, not a year, so the APR is 44.444%

    That's right, with the exception of some of the cards mentioned earlier in this thread, it can be cheaper to put the tax on your card and pay £55 off the card than to pay half-yearly.

    It's not just the likes of slot-TVs that are charging almost 50% interest, the good, old government is at it too!
  • Dylanwing
    Dylanwing Posts: 2,015 Forumite
    And Banks, try working out the APR of unauthorised borrowings on current accounts, it would be well in excess of the %ages quoted in this thread. I have not seen the full details of the £2.6M%, but if she was charged £80 for a short loan of £400+, that sounds about right. Before passing judgement, look on the Bank Accounts thread and the charges well over £100 for a small excess on account - Should the Banks also be ashamed?
    Maybe that is something the OFT could insist on, making the Banks quote the APR when claiming Bank charges each Month. It would be a real eye-opener.
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