Is 40% APR good?

blitz2163 said:
When will the companies understand there is a reason these people dont get credit and giving it too them at a stupidly high rate they can not pay back is just making everything worse
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I think they are well aware of the risks involved and operate quite profitable businesses regardless

I used to work for a bank with a big interest in consumer credit - there are plenty of chav cards out there

the fact is if some ***** insists on wanting a card then who are they to turn down the business - they just need to make sure that the APR is set at such a rate that it is still profitable to lend to those sorts of people even with a portion of them going bankrupt/taking an IVA
 
Burnsy2023 said:
There is, it's called the Financial Services Authority.

Burnsy
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Not currently, companies can charge as much interest as they like as long as the contract is legit.

Always read the small print.

There are currently campaigns to have interest rates capped, but at present, if you sign on the dotted line, Its your problem.
 
Haha my brother has this card, the Vanquis one and when i saw the APR rate i almost choked on my food:eek:...**** me 40% is freakin ridiculous but then its for people with bad credit like my brother who for some odd reason has pretty crap credit.

But saying that he doesnt really use it so cant see the point of having one, i told him hes being raped up his bum if hes paying 40% APR :p. Most ive ever paid APR wise was about 19% and that was for one of them Capital one credit cards...it actually did help my credit score that card did.
 
The service we offer is different because an agent calls at your home every week to collect your repayments. The amount we quote and the amount that your credit agreement states, is what you repay - there are no nasty surprises.
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Is their 'agent' called 'Big Dave' by any chance? :D
 
remember these companies lend to people who have already messed up their credit ratings, it's almost like bribing your way back to a better credit rating. They loan small amounts too, I don't agree with the huge APRs but it does look reasonable for the risk they're taking.
 
Of course it's a high APR%. It's a credit card designed to help people with credit problems get a start on the ladder.

Which is why the limit on the card is £250. As with all credit cards, you should spend sensibly and pay off the card in full every month, and you won't have any problems.

This was the first credit card I ever had out of university as I had such a bad credit rating. A while on and it's still in use - I spend ~£5/month on it and pay the balance off in full every month, to carry on boosting my credit rating. It's helped me, along with other things of course, get to the point where I've now got a good platinum card with cash back (and sadly get loads of offers through the post).
 
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platypus said:
Of course it's a high APR%. It's a credit card designed to help people with credit problems get a start on the ladder.

Which is why the limit on the card is £250. As with all credit cards, you should spend sensibly and pay off the card in full every month, and you won't have any problems.

This was the first credit card I ever had out of university as I had such a bad credit rating. A while on and it's still in use - I spend ~£5/month on it and pay the balance off in full every month, to carry on boosting my credit rating. It's helped me, along with other things of course, get to the point where I've now got a good platinum card with cash back (and sadly get loads of offers through the post).
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That doesn't make sense.

You have a poor/no credit rating so they give you a card which could quickly get you into problems due to its high APR.

:rolleyes:
 
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