www.iva.co.uk

Hi

I recently got a vanquis credit card to build up My credit history when I got the card the rate was 34.9 APR for purchases and 39.9 % for cash advances.

After a month I lost the card and on top of the page that came with the replacement card I noticed the rates had been increased. I thought this was strange as i had used the card and cleared off
the statement balance in full on my first month. When I called Vanquis i could not get a proper Response for this i was told not to worry as according to their system I was on the same rate as when I had joined.


Although it doesn't really make a difference as I will be clearing
Every statement balance in full but it's just the principal what
Reason could they have for increasing my rate after 2 months lol.


Just got my second statement balance is £331 estimated interest
Is £18.58 for the month if balance isn't cleared who can work
Out the APR?

Morning kool,

I am useless with maths! But though this should be a basic 331/percentage, on the basis thinking 10% of £100 is £10. Googled it & yes it is more complicated! Have a look on moneyexpert site under calculating monthly apr on credit cards x

Absolutely no idea kool!! I was never any good at maths at all.

About 65%

I assume this is your first statement ? - it may be that the interest is based on the 56 day cycle (interest free unless you pay it off - the interest is payable from day one if you dont pay it off)

At the start of the cycle there will be a little interest but as the interest and spending grow during the month the interest on the whole amount of spending and any exsisting interest, this will increase the amount of interest as the month goes on.

AS the interest is only an estimated interest - make sure you pay it off in full

Or you could say who cares what the APR is.

You are using it to build credit not build up debt again. It could be 10000000000% APR but I would hope you are paying if off every month regardless.

To true herbekj - but it does sometimes help to know how the credit card companies get these numbers - often you think "they must have made them up"

APR is supposed to help you understand the total cost of borrowing if I recall rather than the interest rate you are charged. I'll see if can find some equations that mean something to the man in the street. But basically the higher the APR the more you pay, that's the bottom line.

The way the credit card companies charge is also confusing - there about 10-12 diffrent ways of calculating interest on these things.

But with an APR of about 35% - you want make sure the Sod*ing thing is paid off on time and in full

Definitely. It's an excellent way of repairing your credit rating, but I think if anyone who has one goes a month without paying the full balance off then they should cut the card up!
I don't think I could trust myself again with cards, I may give it a go when the IVA is over but I know how quick it is to fall into the trap.

I've got a Vanquis card and I pay it off every month by direct debit. I had one month when I couldn't (I had to take the cat to the vet and let's just say it cost about 3 times what I was expecting!) and the interest was horrendous. It was cleared the next month though!

Don't forget that Vanquis does lend to people with a less than perfect credit history so I suppose that is why the interest is quite high.