Scandalous interest rates

Dingers51

Today received by post an invitation to open a new credit card. Vanquis Visa.
Initial credit limit of £150. Annual fee £19. Initial interest rate of 69.5% APR.
Can this be correct or am I missing something? In any event I am pretty sure this is the most ridiculous credit card interest rate in Britain if not the world! Only loan sharks could be worse - unless of course you know differently...

nadnad

take a look at this for answers to all your questions!

http://forums.moneysavingexpert.com...ad.html?t=83027

sicker

We've all had the invitation and we've all filed it in the bucket where it belongs.

John

Dingers51

Yeah me too, but this is directed at those in society who cannot get credit easily and/or cannot afford to be in debt except to a very small degree. They are going to think this is "a good deal". That is what gets my goat!!
:mad:

Reaper

Covered in previous threads here, here, and here to name a few.

But the best one to read is this one.

billion25

Hi there:#

What most people don't realize is that the annual fee needs to be included in the APR calculation. This is a requirement of the consumer credit act. In order to calculate the typical APR, it is required to divide the annual fee by the credit limit and add that to the actual interest rate. So, for the card above, the £19 annual fee adds 12.7% to the APR. The APR is is still very high, but it's not 69%.

NatWest's Black card with an annual fee of £250 has to show an APR of
50%+++, even though the actual interest rate is 12.9%.


This is just another way that the regulators have made the market much more confusing for consumers.