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Vanquis Credit Card Cash Advance

edited 30 November -1 at 12:00AM in Credit Cards
11 replies 6.1K views
harveyb83harveyb83 Forumite
1 posts
edited 30 November -1 at 12:00AM in Credit Cards
Hi,

I have just applied and been given a Vanquis Bad Credit Credit card and have said yes to the £100 cash advance. Now i see so many threads on here scare mongering about high interest ect but think logically even if it is %49.39apr that is an annual interest not monthly so say i have to repay £49 ontop of the £100 i borrowed divide that by 12 thats £4.08p a month..now correct me if im wrong but that isnt that bad to me £4 a month for a £100 loan lol no brainer
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Replies

  • zx81zx81 Forumite
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    It's definitely a no brainer.

    You'd have to have no brain to think it was a good idea.
  • edited 6 September 2018 at 2:14PM
    Willing2LearnWilling2Learn Forumite
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    edited 6 September 2018 at 2:14PM
    I don't think it can ever be a good idea to borrow money at 49.39% APR.

    Would in not be possible to buy stuff with your card for £100, then pay off either the full balance, or part of the balance, when the next statement arrives?

    And welcome to the forum :)
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    :smiley:
  • Terry_TowellingTerry_Towelling Forumite
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    harveyb83 wrote: »
    Hi,

    I have just applied and been given a Vanquis Bad Credit Credit card and have said yes to the £100 cash advance. Now i see so many threads on here scare mongering about high interest ect but think logically even if it is %49.39apr that is an annual interest not monthly so say i have to repay £49 ontop of the £100 i borrowed divide that by 12 thats £4.08p a month..now correct me if im wrong but that isnt that bad to me £4 a month for a £100 loan lol no brainer

    Do they really market it as a 'Bad Credit Credit Card'? I can just see the branding on the card now!

    In fact it could be slightly better (but still terrible) than you are estimating because you have to meet the monthly repayments along the way. If you were to pay it off in 12 months at about £10.70 per month, the interest bill would be somewhere around £28.50.

    If you only paid a fiver a month (if you are allowed to pay so little) you'd have coughed up about £46 in interest in 12 months and still have £86 of the debt left to pay. In fact, doing it that way would take around 3.5 years to pay it off and cost roughly £111 in interest overall. All figures approximate.
  • K80_BlackK80_Black Forumite
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    I also applied for a Vanquis card today, declined the cash advance, and was given a not too terrible APR of 23.4%. Considering I'm unemployed, I am very happy with this, as they have given me the highest limit of all my cards. I plan to use it like I use all my credit cards - to make normal purchases with and pay the balance in full and on time every month. Doing this, I have managed to build up a combined limit of half my annual income over various credit cards and overdrafts - not an easy feat for an unemployed renter! I do have some money put away for rainy days, but 6 months of savings is just not possible at the moment - so I now have the next best thing, 6 months of credit.

    Personally, I'd rather go without something than pay nearly 50% interest. Is it bad of me to say that I hope you desperately needed the money?! If you're borrowing at rates like that for things that aren't absolutely essential... well, it's your life, I suppose.
  • madvickermadvicker Forumite
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    The fact that there's no question or request for advice on this thread, I'm just going to say what I think:

    1. If that's how you think a credit card works you're in for a massive shock.
    2. If you're looking at the £4 a month that you think you will pay, you're not thinking about having to actually pay back the money you borrow - behaviour that will get you into serious debt problems very quickly.
    3. If you think paying £4 a month for a £100 loan is a good deal (regardless whether that's how it works or not), then I refer you to the first reply after your original post.....
  • Important update! We have recently reviewed and updated our Forum Rules and FAQs. Please take the time to familiarise yourself with the latest version.
  • foxy-stoatfoxy-stoat Forumite
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    harveyb83 wrote: »
    Hi,

    I have just applied and been given a Vanquis Bad Credit Credit card and have said yes to the £100 cash advance. Now i see so many threads on here scare mongering about high interest ect but think logically even if it is %49.39apr that is an annual interest not monthly so say i have to repay £49 ontop of the £100 i borrowed divide that by 12 thats £4.08p a month..now correct me if im wrong but that isnt that bad to me £4 a month for a £100 loan lol no brainer

    I will, you are wrong - far from a no brainer. They hope that you pay the minimum £10 a month and after you making regular monthly repayments the limit will be in the thousands and you will be forever paying them near on 50% interest.

    Good luck, I think you may need it.
  • PRAISETHESUNPRAISETHESUN Forumite
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    Not sure if trolling... or just not understanding how credit cards work
    Either way, the £100 cash advance is a TERRIBLE idea. Getting cash out on a credit card is just a bad idea in general and you shouldn't do it unless it is an absolute emergency
  • jonesMUFCforeverjonesMUFCforever Forumite
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    Is the cash advance some kind of promotion with Aqua?

    If so it should be reported to the financial regulators - it is a huge no no from me to take money out on a high interest card like this.
    What goes around - comes around
    give lots and you will always receive lots
  • edited 7 September 2018 at 12:20AM
    Ben8282Ben8282
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    edited 7 September 2018 at 12:20AM
    harveyb83 wrote: »
    Hi,

    I have just applied and been given a Vanquis Bad Credit Credit card and have said yes to the £100 cash advance. Now i see so many threads on here scare mongering about high interest ect but think logically even if it is %49.39apr that is an annual interest not monthly so say i have to repay £49 ontop of the £100 i borrowed divide that by 12 thats £4.08p a month..now correct me if im wrong but that isnt that bad to me £4 a month for a £100 loan lol no brainer

    Your financial situation must be pretty dire if you are in the position of having to borrow £100 cash from Vanquis at 49.39% APR and repay it over 12 months.
    The interest you pay will not be £49.39 and you will not be paying £4.08 per-month, That's not the way credit cards work.
    Just out of curiosity, were you charged a fee for this cash advance?
  • AnthornAnthorn Forumite
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    harveyb83 wrote: »
    Hi,

    I have just applied and been given a Vanquis Bad Credit Credit card and have said yes to the £100 cash advance. Now i see so many threads on here scare mongering about high interest ect but think logically even if it is %49.39apr that is an annual interest not monthly so say i have to repay £49 ontop of the £100 i borrowed divide that by 12 thats £4.08p a month..now correct me if im wrong but that isnt that bad to me £4 a month for a £100 loan lol no brainer

    My position is and always has been throughout my years on M.S.E. Forums that if you can comfortably afford the repayments go ahead. You're getting credit and that's what a credit card is for. It may also be preferable to have a balance shown on your credit history than looking as though you're not using the card if you clear the balance every month.

    However the position on M.S.E. is to avoid high interest on high APR cards by clearing the balance every month. After all this is Money Saving Expert. It's just a shame that some people apply that advice to all cards, even low interest cards!

    So to recap, if you can afford the repayments go ahead but if you fall down and break your legs don't come running to me!
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