I can see some positives for Vanquis CC

cifpower

Received an application form in the post this morning. Why? I dunno! _pale_

Reading the T&C in depth the interest rates are very high. :eek: But if you get a £2000 limit the APR is 21.7% which can be the same as some get on MBNA cards. :rolleyes:

It also states - "We guarantee to reduce the Margin Rate (bit above BoE rate) every year if you make you repayments on time and do not go over your credit limit" :T

If you cannot get a normal credit card, get this one. Spend £50 a month, pay it all off so no interest is accrued and your credit score will increase! :dance:

They are not for everybody. The average limit is £600. If you got a card with the lowest limit of £150 you could easily build your score without overstretching yourself.

mrcow

cifpower wrote:

If you cannot get a normal credit card, get this one. Spend £50 a month, pay it all off so no interest is accrued and your credit score will increase! :dance:

But the problem is that a lot people who can't get credit cards are in that position because they have been unable to contol credit card type spending in the first place.

This is just offering a further temptation to people who have proven themselves vunerable in the past, and IMO is asking for these people to accrue more debt.

I don't think that Vanquis are doing this to provide a lifeline to people with low credit scores. I can't remember, but isn't the fee £19 per year too?

Of course, if you try the above, and it works, then great, but I worry about the other customers who will just get saddled with another debt (at a ridiculous APR) through absolutely needless spending on 'things' that they feel are essential, or for 'emergency' spending (how many times do we have to hear that particular phrase on this site?)

Just my two penneth!

But it's one idea I suppose........

Fatboy_NSS

mrcow wrote:

But the problem is that a lot people who can't get credit cards are in that position because they have been unable to contol credit card type spending in the first place.

That's like saying people don't deserve a second chance. Cards like Vanquis and Monument are necessary so that people who stuffed up in the past can show they've learned from their mistakes. There will always be people who can't control their borrowing, but with a £150 starting credit limit you can't get in too deep.

Xbigman

If you are a minimum wage slave who is stuffed by the 48 hr limit living in over priced rented accomodation this is exactly the sort of card you end up with, and £150 *is* in too deep.
Regards




X

cifpower

The 48 hour rule has not been removed yet. Just a wee aside.

Fatboy_NSS

Bad choice of words by me, I meant to say clearable every month. Even if you can't afford to pay it off, you can clear the balance every month and then spend it again. I stand by my main point though, there are plenty of people who overstretched themselves when they started out with credit but probably want to buy a house some day. They need to get something positive on their credit file so they'd be able to get a mortgage at a decent rate. Vanquis and Monument set their rates high because it is high risk lending, but for the people who have learned from their mistakes they provide an invaluable service.

burbs_2

I have posted about this card before. Someone came into my garage with this card and rightly or wrongly i judged them as soon as they came in and did not really want to sell to the couple on finance which is what they wanted. Luckily enough they did not return.

mrcow

Fatboy_NSS wrote:

That's like saying people don't deserve a second chance.

But that's not how I meant it at all...and I apologise if that's the impression I gave.

I had my fingers burned years ago with credit cards and store cards, paying of the minimum on probably about £10k of debt (I was too naive to even know what the APR was, but back in 1997, you can bet it was probably about 24%).

After eventually struggling to pay it all off, I cut my cards up (there were over eight of them.......who needs eight cards?!), cancelled the agreements and vowed never to ever get another card again. It was the right decision, and my debt has never been out of control since. I use my debit card for everything.

Since joining this site, I've applied for a couple of cards, (but this was to get free gifts.......go figure!:rolleyes:), and also to finance my kitchen purchase on a 0% deal (something I would never have dreamed of doing before I joined this site!). TBH, the current card sits in a file in my study and is still stuck to the original letter that it came with....it still frightens me though, as I know how much trouble these cards are capable of causing me.

I personally consider credit cards a danger to anyone who isn't either absolutely organised with their budget, or savvy enough to play them at their own game. My personal experience of credit cards is that most people I know who use them do so for purchases that they don't have the money for right now. And there lies the danger. If you don't have the money for a purchase right now, you have to ensure that you have the money in a month's time to pay off the card......if not.....then it starts.......

Obviously by definition, this doesn't apply to many people reading this particular board (!)

As I said earlier, if these cards actually do actively help people improve credit ratings, then that's great.....but I worry about the many others who will just use this card and find themselves in more debt further down the line. And yes, maybe £200 doesn't sound that much money? But if you don't have it, you don't have it!