vanquis increase

thebritishbloke

dollymix53 wrote: »

I got my card about 3 years ago credit limit £250, had a letter in Feb with increase to £1000 and just had email yesterday to say increasing limit to £2000 in July. I don't pay off in full each month, can't afford to although I do pay well over minimum payment, I don't really want too big limit, its only there in case of emergency need.

And yet you can't pay off your statement every month? Cards like Vanquis, Aqua etc are not for holding balances. The interest rates will cripple a lot of people.

Anthorn

thebritishbloke wrote: »

Cards like Vanquis, Aqua etc are not for holding balances.

Who says so? You?

We should have a sticky on all forums stating that these forums are to provide help and not for criticising and propagating pretty much unhelpful and stupid fallacies!

I have a credit card balance and proud of it: It shows I can handle a credit limit and make the payments on time!

thebritishbloke

Anthorn wrote: »

Who says so? You?

We should have a sticky on all forums stating that these forums are to provide help and not for criticising and propagating pretty much unhelpful and stupid fallacies!

I have a credit card balance and proud of it: It shows I can handle a credit limit and make the payments on time!

Common sense. Who wants to willingly pay 59.9%+ interest?

We're not going to have another one of these conversations.

On_my_way

Anthorn wrote: »

Who says so? You?

We should have a sticky on all forums stating that these forums are to provide help and not for criticising and propagating pretty much unhelpful and stupid fallacies!

I have a credit card balance and proud of it: It shows I can handle a credit limit and make the payments on time!

I think they said that they aren't for holding balances on because of the very high interest rate. I don't believe they were judging you so please don't worry.

GooliesOfFire

Vanquis and Aqua are a bit like Wonga... With high available balance and high interest rate and for people who cannot repay it in full.

If it was for building a credit rating with limit up to 250-500 quid then fair play... but giving people higher balances is just irresponsible.

Anthorn

thebritishbloke wrote: »

Common sense. Who wants to willingly pay 59.9%+ interest?

Who wants to pay 29.9% or 18.9% (a quote I received today) or 17.9% or 11.9% interest? That's just about as ridiculous an argument as it gets. In fact when it comes to monthly payments, the statistic which will affect most of us, the difference between the different APRs for the same balance is not a lot.

GooliesOfFire

Anthorn wrote: »

Who wants to pay 29.9% or 18.9% (a quote I received today) or 17.9% or 11.9% interest? That's just about as ridiculous an argument as it gets. In fact when it comes to monthly payments, the statistic which will affect most of us, the difference between the different APRs for the same balance is not a lot.

Rubbish.

It is a lot. In example 39.9% (Aqua) and 6.5% (MBNA) now borrow 2000, pay minimum and see how much it will cost you.

Anthorn

GooliesOfFire wrote: »

Rubbish.

It is a lot. In example 39.9% (Aqua) and 6.5% (MBNA) now borrow 2000, pay minimum and see how much it will cost you.

It's not rubbish at all. More realistically, for a balance of £500 the difference between 29.9% and 18.9% for example is roughly a fiver a month. You are committing the common error of looking at the annual rate and not the monthly rate. I get paid monthly and not annually and pay just about everything monthly including insurance. What about you?

Anyone who borrows £2,000 on a credit card has to be bonkers: A much better rate can be had on personal loans.

GooliesOfFire

Anthorn wrote: »

It's not rubbish at all. More realistically, for a balance of £500 the difference between 29.9% and 18.9% for example is roughly a fiver a month. You are committing the common error of looking at the annual rate and not the monthly rate. I get paid monthly and not annually and pay just about everything monthly including insurance. What about you?

Anyone who borrows £2,000 on a credit card has to be bonkers: A much better rate can be had on personal loans.

The problem is many people are idiots, they max out the credit cards and pay minimum, or max out overdrafts (some as high as £2000-3000) and pay £90 or so in fees. We know it's wrong but people do that sadly. So 39.9% or even 29.9% rate makes a huge difference in how much they pay monthly and cost of credit compared to something like 6.5% or even 11.9%.

If we are talking about a balance in a region of £500 then fine.. problem is when people are given limits of £2000 and they use it. And many do.

I imagine if somebody borrowed £2000 i.e. used something like Aqua Card with advertised 39.9% APR they probably have to pay about £65 of interest, minimum monthly payment probably about £80, hardly any balance paid off. It's a trap. Irresponsible lending.

Now the same sum of £2000 at 6.5% rate, monthly interest will be £10, if you pay same £80 monthly it reduces your balance by £70. Flexible and cheap borrowing.

My wife has got Barclaycard Initial (her first and only credit card) with 29.9% rate and she got £3500 limit! It's just crazy. Her balance is £0 though.

bigadaj

Anthorn wrote: »

It's not rubbish at all. More realistically, for a balance of £500 the difference between 29.9% and 18.9% for example is roughly a fiver a month. You are committing the common error of looking at the annual rate and not the monthly rate. I get paid monthly and not annually and pay just about everything monthly including insurance. What about you?

Anyone who borrows £2,000 on a credit card has to be bonkers: A much better rate can be had on personal loans.

I think you're on the wrong site.

You seem to think paying interest is a good thing, when you are far better off paying a balance in full. This has been stated to you before by many posters but you still don't seem to have learnt.