Payday loans.... urgh

JimmyTheWig

bikermom wrote: »

i thought if you had £100 with a 34.9% apr you would pay back 139.40 .

The A in APR means annual.
If you borrow £100 for a year at 34.9% you would pay back £139.40.
But you wouldn't keep a credit card debt for a year (*) so you don't pay that much.

(*) Well, you would if you went out and spent loads on it and couldn't pay it back for a year. Then the APR would be more meaningful. But that wouldn't be a good way to use them.

Am a little bit embarrased now of how dumb i am!

Don't be. It's something that you have never looked in to. Why would you be expected to know anything about it?
I don't know how to start up a motorbike. That's not because I'm dumb, just because I've never been interested enough to find out.

ChopperST

You've also fallen victim to the credit reference agency scam of "credit scores" there is no such thing, each lender will score you in accordance with the data you and the CRA's provide.

If you had a mortgage and paid it every month on time then applied for a new mortgage then the lender would see you as a good risk.

The fact that you had no other credit in that situation would have been a positive to your case as it shows you live within your means and your only debt was on your home.

iolanthe07

But what about the interest added to it? so the £100 i would have spent i pay back £110. so im actually losing money there arent I?

There is no interest added to a credit card providing you pay it off in full and on time each month. I have been doing this for many years, and never paid a penny in interest.