Help me work out my minimum payment please??

CPB_2

Okayy, I have a credit limit of £250 if I completely use this with an apr of 49.9% (aqua I know) what will my monthly repayments be?? I plan to pay of £70 a month but just wondering what it will be. Thankyou x

YorkshireBoy

Your minimum payment calculation is shown in your T&Cs and summary box. On their website it's 1% plus interest subject to a £5 minimum, so it'll be £5 on your first statement.

However, if you only pay £70 (and don't use the card again) your next statement will have some interest added. But £70 will more than cover the minimum payment of around 8% (2 months of 3.5% per month plus 1%) which would be circa £20* on your £250 balance.

A word of warning...don't spend up to the limit after the initial month as if you do you'll be overlimit on your second statement date when they add the interest.

* It'll be a bit less than this in practice. How much less will depend on when you make your first £70 payment.

forgotmyname

As above the risk is going upto your limit then they add interest on which may take you over the limit. Then the charges build up.

Your £70 a month could see your £250 debt last for years. Its a start to a slippery slope.
Dont borrow on a card with interest rates that high...

SnowTiger

CPB wrote: »

Okayy, I have a credit limit of £250 if I completely use this with an apr of 49.9% (aqua I know) what will my monthly repayments be?? I plan to pay of £70 a month but just wondering what it will be. Thankyou x

These two calculators are useful:

http://www.thisismoney.co.uk/money/cardsloans/article-1633399/Calculator-Credit-card-repayment-reality-check.html

http://www.whatsthecost.com/creditCard.aspx

Four months to pay the balance off at £70 a month according to the first one. The second shows minimum payments and allows you to tweak repayments.

My advice: don't use the card again until the balance is paid off and throw everything you can at it. And keep an eye on statements, even after you have paid off the balance.

[STRIKE]According to Vanquis you need to pay off 4.5% of the balance every month plus interest.[/STRIKE]

YorkshireBoy

SnowTiger wrote: »

According to Vanquis you need to pay off 4.5% of the balance every month plus interest.

Handy to know for future...but OP has an Aqua card.

CLAPTON

CPB wrote: »

Okayy, I have a credit limit of £250 if I completely use this with an apr of 49.9% (aqua I know) what will my monthly repayments be?? I plan to pay of £70 a month but just wondering what it will be. Thankyou x

that's a really shocking rate of interest; are you really rich enough to pay that sort of money


better to think how to pay in full and never pay any interest at all.

dzug1

Your £70 a month could see your £250 debt last for years. Its a start to a slippery slope.

Four months to pay the balance off at £70 a month

Hmmm - two somewhat opposing timescales


OP presumably has difficulties in getting mainstream credit

SnowTiger

YorkshireBoy wrote: »

Handy to know for future...but OP has an Aqua card.

LOL. Yes, of course. My mistake.

Monkeyballs

Hi,

I'm no maths genius but I think it's something like;

Month 1 - £250 balance - £70 = £180. £180 + 4%(ish) interest is £188(ish)

Month 2 - £188 - £70 = £118. £118 + 4%(ish) interest is £123(ish)

Month 3 - £123 balance - £70 = £53. £53 + 4%(ish) interest is £55(ish)

Month 4 - Cleared.

I may be a little out but basically it's 4 months

BUT why not just save £85 per month for 3 months and then you'll have £255 and no interest

MB

CPB_2

Thanks guys, had to get this card as I need to improve my credit rating! Although it will cost me a lot in intrest, it will help my score so I can get accepted for a mortgage. I'll be paying the full balance off within 3/4 months, regardless of interest. X

CLAPTON

CPB wrote: »

Thanks guys, had to get this card as I need to improve my credit rating! Although it will cost me a lot in intrest, it will help my score so I can get accepted for a mortgage. I'll be paying the full balance off within 3/4 months, regardless of interest. X

nonsense


using the card and paying in full each and every month will improve your credit file