118 118 Credit Card

A4445
A4445 Posts: 1,103 Forumite
edited 21 April 2018 at 10:46PM in Credit cards
118 118 have launched a new card thats different to most sub prime cards. They charge a flat fee per month for the card and there are no other fees. The fee depends on the limit. No interest is changed.

£250 limit £8 fee per month.
£500 limit £14 per month.
£1200 limit £17 per mont.

I can’t work out if this a good or bad thing. They charge no fees for cash withdrawals or forex.

Comments

  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898 Forumite
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    Bad deal IMO - what if you spend any amount on an ordinary credit card and repay it before due date you would pay nothing in interest.

    Ok most credit cards charge for cash withdrawals but apart from the specialist cards it is not a good idea to withdraw cash on a credit card anyway.
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    It's a poor deal, even compared to carrying a balance on a sub prime card, particularly on a lower limit,
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    First Anniversary Name Dropper First Post I've been Money Tipped!
    So £204 a year for a £1200 limit, sorry not a good deal
  • SnowTiger
    SnowTiger Posts: 4,458 Forumite
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    Generally not a good deal, except for a few obscure cases someone will no doubt come up with. :)

    It's a similar offering to the Shout Card, which was eye-watering expensive.
  • nic_c
    nic_c Posts: 2,928 Forumite
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    Look at Vanquis on their website for a 39.9% APR £250 card you pay £77 interest if you max out and paid the minimum, or £27 if you managed to pay £50pm

    So the 118118 card would be £96 flat fee! By looking at their website they are obviously going on the "0% interest" and "no other fees".

    Maybe if you were someone who missed payments, used credit card to get cash out, always had card around the max then it might be good, but its not really good card for credit building.
  • r2015
    r2015 Posts: 1,136 Forumite
    Home Insurance Hacker! Cashback Cashier
    they have to pay for these nauseating adverts somehow
    over 73 but not over the hill.
  • Superhoopza
    Superhoopza Posts: 452 Forumite
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    The irony that they still reject loan applications.
  • guesswho2000
    guesswho2000 Posts: 1,703 Forumite
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    Providing you get a £1,200 limit, borrow the whole amount straight away and keep it that was for the entire year (well, make the repayments and reborrow it instantly) - equivalent to 17% interest (£17 per month/£204 per year), less than most credit cards.

    Of course it'll likely work out to be the equivalent of a much higher rate, since you probably wouldn't borrow the whole lot instantly and pay none of it back at all over the year.

    I'd give it a miss, personally!
  • theburningcat
    theburningcat Posts: 198 Forumite
    I don't even need to get my calculator out to spot that this is an awful offer.
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