Credit card interest rates too high (Aqua and Vanquis)

TickledPink_2

I have a couple of credit cards that I opened about 2 years ago. We had serious debt issues about 10 years ago so I couldn't get credit for a few years. But a couple of years ago I tried again and was surprised to not only get catalogue accounts but also these two cards.

Now we have credit limits of £3000+ plus on both cards. The problem is primarily Aqua. I knew we were paying exorbitant amounts of interest. Their site says that APR is "typically" 35.9%. I've just realised that we're paying 49.9%!!

The interest for Vanquis seems to be significantly lower, judging by last month's statement. Unfortunately I can't find anywhere on their site that allows me to verify the interest rate.

Is there any way of getting Aqua to reduce the interest rate? I've tried applying for debt consolidation cards with lower interest rates but no dice - discovered from a programme on Radio 4 last week sometime that "debt consolidation" seems to be a dirty word in the banking industry ... which seems a little bizarre. Surely they should be encouraging people to save money.

[Deleted User]

You could ask tem. But your rate is a reflection of the risk you represent.

Your interest rates will shown on your statements.

Debt consolidation is a dirty word because most people who do it aren't very good at it. They take the new loan and then spend that, and end up doubling their debt.

Visit the DFW boards for advice on how to get your debts down.

Carrying debts at anything other than 0% isn't a good idea, and downright insane when you have aqua and Vanquis cards and don't even understand what they're charging you.

Candyapple

You said you had serious debt problems 10 years ago, but have now run up £6k on 2 subprime high interest cards?

Debt consolidation is not the answer for you my friend, you clearly didn't learn anything.

Have a read of this thread for some inspiration:
https://forums.moneysavingexpert.com/discussion/5567669

Fill this out:
http://www.stoozing.com/calculator/soa.php

Then post your statement of affairs below and wait for advice:
http://forums.moneysavingexpert.com/forumdisplay.php?f=76

lynz68

These credit building cards for those who have no credit history or have had previous financial difficulties hence the higher interest rates as a bigger financial risk. The best way of using them is to use a small amount and repay in full every month.

Your interest rate should be on your statement and you would have been told this when you got the card. Did you read the paperwork that came with the card?

You can ring them and ask them to reduce your interest but they are not obliged to.

By a debt consolidation card I assume you mean a balance transfer card if you cannot get a card with a lower interest rate the best thing you can do is stop using them and throw every spare penny you have at them to get them paid off you really shouldn't be carrying a balance as the interest is so high and if you are only paying the minimum it will only pay a small amount of your actual balance.

These companies are not doing anything wrong they cater for a specific market that more mainstream lenders will not. It's up to the user to be responsible for how they use the card. Used responsibly they do open the door to mainstream lending.

TickledPink_2

Actually, I learned a lot.

Just called Vanquis and their rate is 28%, the lowest possible on this card. So either Vanquis are under-charging, or Aqua are over-charging for my "risk" level. Managing the payments isn't an issue. We have more income than we did 10 years ago (you can't run 4 horses on benefits alone).

It's the amount of interest that Aqua are charging that's the issue.

Incidentally, we haven't run 6K on the cards. That's the total credit limit (well, it's actually £6750).

Candyapple

OK then, have you tried entering your details below into the eligibility checker, what do the results show?

https://creditcards.moneysavingexpert.com//balance-transfer

[Deleted User]

TickledPink wrote: »

So either Vanquis are under-charging, or Aqua are over-charging for my "risk" level.

You're assuming they have the same risk management strategy. They don't, and their criteria and experiences vary.

lynz68

Their is no such thing as under-charging or over-charging interest with credit cards. Each company has their own criteria the interest rate is what it is and you choose whether to use it or not.

bigadaj

TickledPink wrote: »

(you can't run 4 horses on benefits alone).

QUOTE]


Broken Britain.

PeacefulWaters

Have you thought of not spending on the cards for a bit and making repayments to eventually get the balances down to zero?

Damned good way to eradicate interest.

For what it's worth, pay minimum payment to Vanquis and throw the kitchen sink of repayments at the more expensive Aqua.