Aqua interest hike

maxjak

Hello, new to the forum, just recieved a letter from Aqua c/c, they are raising the credit interest up 4%, to 33.40%, they are stating i might not have paid on time, i usually pay most of it off each month and 10 days before the statement due date, also they say that maybe it’s because unusual activity? strange spending habits, usually use it for items that might go wrong in the future, never more than £500, i am using upto 60% of my credit it limit at most.
i have not applied for credit in the past 10 years, i got this card to improve my credit worthiness now i have retired 2018, i have a mortgage, i pay all my bills on time.
i complained to them, they are not interested ( good pun), i threatened to close my account, after paying off in full, no concerned at all, i have registered a compliant.
I have a balance of £800 most months, pay interest as i assumed this would show i can pay my bills.
The card is convenient when required, due to my income as a pensioner, i doubt if could just close the account and get a new card from elsewhere.
This is sharp practice, feeding on the vulnerable at this time.
I will pay in full this month, and just not use the card so they will get nothing from me👍😂
any else same attitude from Newday finace?

[Deleted User]

It's very standard, no sharp practice. Lenders price by risk.

Never pay interest out of choice. It tells lenders you are living beyond your means.

MalMonroe

Hi,

Isn't Aqua one of those cards for people with poor credit - you could apply for a different one with 0% balance transfer. 

Don't let being a pensioner put you off. I am also a pensioner and went through a terrible financial period when I had a DRO just after retiring a few years ago. After I came out of that, I managed to get an Ocean card (owned by Capital One for people with poor credit history) in order to build up my credit-worthiness. Then I graduated to a proper Capital One card and now I have a Virgin credit card which I applied for as a 0% balance transfer card. You could try to get a 0% balance transfer card or, as you plan to pay off your card in full, a 0% purchase card, check with soft searches first though to see if you would be accepted and by which company. 

As zx81 says, don't pay interest out of choice - follow Martin's advice to pay off in full every month - I see that is your intention anyway. Don't let them get away with your interest money!

I've had dealings with Newday finance and they're just the same as every other lender really. Nothing personal, they're only in it for the money. 

SnowTiger

maxjak said:

Hello, new to the forum, just recieved a letter from Aqua c/c, they are raising the credit interest up 4%, to 33.40%, they are stating i might not have paid on time, i usually pay most of it off each month and 10 days before the statement due date, also they say that maybe it’s because unusual activity? strange spending habits, usually use it for items that might go wrong in the future, never more than £500...

[..]

I have a balance of £800 most months, pay interest as i assumed this would show i can pay my bills.

IMO leaving a small amount outstanding on your credit card account every month isn't a good sign.

Anyone who can't come up with, say, a couple of hundred quid and prefers to pay ~30% interest on all card purchase is struggling financially.

maxjak

Thank  you for your thoughts very much appreciated, suppose by being fair with this company was wrong, i will pay the card off and use them, i will look at another company as suggested.
Keep safe

jsmith9

If you have a balance of £800 each month, but pay 'most' of it off each month, then you do realise that by not paying off 'all' of it each month you are paying interest on the full £800 even if you pay off say £750?

cymruchris

Focus on getting the balance down to zero so that you don't pay any interest. Then whatever you spend - pay off in full - each and every month - then it won't matter if your interest rate is 30 percent or 30000 percent - you'll never pay them a penny again. Are you in a position that you can clear your balance monthly?

Yahoo_Mail

Interest rate hikes could mean something, but might not mean anything.  They hiked my interest rate after I let it sit idle for a while.  Not sure if it was a gentle nudge or not.  After it sat idle a bit longer they halved my limit so I closed it as they (presumably) wanted me to do.

maxjak said:

This is sharp practice, feeding on the vulnerable at this time.

Or the current environment makes lending riskier, and the only way to counteract the increase rate of defaults is to increase interest rates.

Not that there's any real indication that they're doing that though, but if they were it's not feeding on the vulnerable.

maxjak

Hi, After making a compliant as regards the interest hike, Aqua have now advised, in writing, that there will now not be an interest increase.
I paid the card off in full as many advised, i will use and pay in full from now on anyway.

kaMelo

maxjak said:

Hi, After making a compliant as regards the interest hike, Aqua have now advised, in writing, that there will now not be an interest increase.
I paid the card off in full as many advised, i will use and pay in full from now on anyway.

Have they kept the card open?
Normally rejecting interest rate rises will lead the lender to close the account to new spending, allow you to pay of the balance with any interest at the old rate and once cleared, close the account. 
If they've rolled back on an interest rate rise and kept the card open for future spending then that's most unusual.

afis1904

Got my cashback card right before they withdrew it and I think it's still on like 44% interest. Not like I ever pay any but it's wild they'd charge me that at all