Card with the LARGEST APR?

br1zer

Hi all

I woke up bleary eyed to open my post and found a letter that looked like any other Credit Card application. The Apr was 5.9%. I looked again and it actually said Typical APR 59%!! with a variable 44.6% to 69.5%. There is also a £19 annual fee and a minimum monthly payment of 5%.

Should I accept this marvellous offer, I could get a limit of up to £2000.

The card is a visa issued by the good(?) people of VANQUIS

Extract from their application form. Borrow £150, pay £19 annual fee, Interest: purchase or cash/bal transfer: 39.9%. Total charge for credit £91.10

Now, I have a rating of excellent on my credit record and I am totally bemused as to why I got this letter. I am a proud card tart who currently has a 5.9% card and have all payments up to date on my mortgage, loan and CC.
My wife also has an excellent credit rating and we have been at our address for 5 years.

I am in the fortunate position where I can laugh at such an appalling offer. Yet I am aware that there are folk out there who would jump at the chance of having this card.

Martyn, I think it is absolutley scandalous that a card such as this can be offered, preying on folk in desperate Financial circumstances. What can be done about it?

I sincerley hope that no other forum member can beat this apr!

tinalives

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isasmurf

br1zer wrote:

Now, I have a rating of excellent on my credit record and I am totally bemused as to why I got this letter. I am a proud card tart who currently has a 5.9% card and have all payments up to date on my mortgage, loan and CC.

They don't target individual people, everyone in your street has probably got the letter. I got junk mail from them about a month ago but it was just addressed to "The Householder".

Fedz

Some other forum members including myself happily have a Vanquis Credit Card.

The card is primarily aimed at people with a poor credit rating. The high APR is to encourage payment of full balance or quick payment of debt so a good credit score can be achieved.

I pay my balance in full every month so never get charged interest, so a high APR doesn't effect me.

Vanquis start customers off on a low credit amount, good running of the account increases your credit and so on.

Whilst the APR said 59.9% - when I got my account it turned out to be 33.030% which lowers over time as your credit is increased.

I also have a BarclayCard with BT specials - latest (to me) being 5.9% so I use that card for that purpose (if required). It is wiser to not to use a BT card to purchase with as the purchases are secondary to the BT fee so will be left with the usual interest mounting until the BT is paid.

Kind regards

tinalives

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Fedz

Yes

In the wrong hands I doubt Vanquis will let you go far! The credit limit can be as little as £150 depending on score increasing to £2,000 which at this level has a lower APR than BarclayCard (Initial).

Obviously the APR and credit limit bands reflect the risk Vanquis Bank makes in giving credit.

Kind regards

sooz

wow,

saw this being 'promoted' in the papers last month. yes it is totally disgusting, but if you read the small print and know what you are in for.......

still better than paying a local 'credit' agency door to door

i guess if you cannot get any other card, but yes, think they should not be allowed without BIG print not small print

Cumbrian_Male

Vanquis bank is a subsidiary of Provident Financial (LSE:PFG)

As such the card is aimed at the sub prime credit impaired market. However it will let the disiplined build up a credit rating and with low credit limits could also be used for online transactions with little risk if details phished and fraudulent spending takes place.

Thefunkygibbons

I received an application form yesterday as well

Looks like they are targeting houses with a value in excess of £750k

Can't think what there other criteria might be