Pay logbook loan with vanquis card

wardyb

I have just been accepted for a vanquis card with £500 limit. I got it with the intention of spending around £50 monthly to pay in full every time to rebuild my poor credit.

I noticed the apr of the card is around 40%, yet I am currently paying a logbook loan (Loans2Go) with a 450% apr. Would I be able to make a credit card payment to loans2go for £500?

Would vanquis see this as a cash advance? I think the interest on my £1000 loan is £80 alone per month so I am really eager to clear this.

Thanks in advance

[Deleted User]

I doubt they accept card payments. But you could ask them.

[Deleted User]

I doubt they take a credit card payment. You can only try and see.

Although, given the massive difference in interest rates, you'd still be better off taking money out the cash machine (assuming you can't get any cheap borrowing from family/friends etc) - just beware:

- Vanquis might not let you (your cash limit may be lower than your credit limit)

- Vanquis may have a daily ATM Limit of £250/£300ish - to get round that you'd need to either split it over 2+ days, or go to your bank counter and ask them to do it

- Don't take anymore than ~£450 quid as (depending on your final APR - some are 99.9% APR for cash) when the interest and fees gets added, you'll go overlimit and be charged. You might not clear the loan in one go that way, but even putting say £450 down now and the rest when you have some more cash is preferable to busting your limit. £450 might be running it too close if you're the highest risk band (interest on the card approx £38 a month, fee of £13.50 to take the cash out)

wardyb

Thanks for working that out for me. I am still awaiting my card, I will double check the apr and the cash limit when I get it.

A loan off of family is a non starter as I am not too close to them.

[Deleted User]

It's not the 'best' solution - but I assume you are not eligible for a cheaper card (have you done a full comparison? https://creditcards.moneysavingexpert.com/?bt-purchase&_ga=1.64961071.145860968.1470939163 - click through the different categories down the right when the results have loaded) - you may be surprised. If you're pre-approved by say Capital One or Aqua the APRs would be cheaper.

If you can't get another better card, then by using the Vanquis you are making the best of a bad situation (even 100% APR is better than 450%!).

Make sure you continue to meet at least the minimum contracted payments on your credit card (your statement will tell you how much) and pay as much of the loan as you can comfortably afford - that way you will be reducing your overall interest paid.

It you were to split it say £40 credit card, £40 loan which many people think is the logical thing to do - you would actually pay more in the long run. It's better to do bare minimum on the credit card, as much as you can on the loan - until the loan is cleared, then you hack away at the credit card once the loan is paid off

JJG

450% APR!?!?! That's ridiculous. 3 months of interest is more that what you borrowed!!

Also you're paying a lot more than £80 a month in interest if that's your interest rate. A minimum of £375 a month in interest.

£80 a month in interest would be closer to a 90% APR

System

Can you get access to a credit union?

They might be able to give you a better deal with the loan than either Vanquis or the original loan deal.

wardyb

I tried applying for an aqua card but just been rejected. I will just stick with the vanquis for now til I notice further improvements to my credit scores.

Will check if there are any local credit unions. I was previously saving money with a credit union but I have moved to another town a couple of years ago.

JJG wrote: »

450% APR!?!?! That's ridiculous. 3 months of interest is more that what you borrowed!!

Also you're paying a lot more than £80 a month in interest if that's your interest rate. A minimum of £375 a month in interest.

£80 a month in interest would be closer to a 90% APR

This is from their website: "Representative example: if you borrow £850 over 18 months at a flat rate of 132% per annum (fixed) with a representative 450.5% APR you will make 17 monthly payments of £140.72 and 1 payment of £140.76, repaying £2,533.00 in total. Minimum loan term is 12 months, maximum loan term is 36 months. However, we only charge interest monthly and we do not penalise you for early settlement. If you repaid the loan in one month it would cost you just £93.50 and nothing more."

MrsTinks

If you haven't already please go over to DFW and post up your statement of accounts - those APRs are insane!

If you work full time some companies will do you a loan/advance on wages. Any APR you get from them will be insanely ahead of this!
450% APR... guess it's in theory better than the 3000%apr the payday lenders used to do...

redux

MrsTinks wrote: »

If you haven't already please go over to DFW and post up your statement of accounts - those APRs are insane!

Indeed. Every extra £10 paid early now means £30 better off in a year's time, or over £100 in 3 years.

curty510

wardyb wrote: »

This is from their website:[/B] "Representative example: if you borrow £850 over 18 months at a f..... 17 monthly payments of £140.72 and 1 payment of £140.76, repaying £2,533.00 in total.

That is horrendous!! Do you not have anything to sell to pay it off asap? Iphone/PS4 or similar?

I can't believe companies can get away with loaning people money at this rate?