Credit card rates

Author
Discussion

shakotan

10,777 posts

202 months

Wednesday 18th March 2009
quotequote all
sidicks said:
okgo said:
What is the sum to get an accurate figure?
APR (%) = (1 + monthly rate)^12 - 1

HTH

Sidicks
By using that calculation, 2.04% becomes 35.48%?

shakotan

10,777 posts

202 months

Wednesday 18th March 2009
quotequote all
okgo said:
Yes, my Virgin card recently jumped from 16% APR to over 25%.

Needless to say I quickly increased the payments.
Whn my Virgin CC jumped to around 32% APR, I called MBNA. and they told me that they upped my interest rate because of the amount of my credit 'balance' (at the time around £20k across three cards and two loans). So the more Credit Debt you have, the higher your APR will be?

andy400

10,728 posts

237 months

Wednesday 18th March 2009
quotequote all
SJobson said:
Nickyboy said:
Fat Richie said:
(eg: Mint, 1.94% monthly on purchases - crap with maths but that's around 16%+ pa?)
Try MBNA and their associated cards, mine is 2.04% per month or 24% a year!!
Both of you are way out with your figures... 2.04% per month is 32.9% per annum, and 1.94% per month is 25.9%.
confused 2.04%pcm = 27.5%pa shirley?

emicen

8,706 posts

224 months

Wednesday 18th March 2009
quotequote all
SJobson said:
Nickyboy said:
Fat Richie said:
(eg: Mint, 1.94% monthly on purchases - crap with maths but that's around 16%+ pa?)
Try MBNA and their associated cards, mine is 2.04% per month or 24% a year!!
Both of you are way out with your figures... 2.04% per month is 32.9% per annum, and 1.94% per month is 25.9%.
I made it 27.4% and 25.9% respectively?

1.0204^12 = 27.4
1.0194^12 = 25.9

ipitythefool

12,832 posts

254 months

Wednesday 18th March 2009
quotequote all
Simpo Two said:
I remember suggesting a couple of years ago that credit should be banned. If people waited and saved for stuff, the problem would vanish.
So only the super rich would be able to buy houses or set up businesses?

ipitythefool

12,832 posts

254 months

Wednesday 18th March 2009
quotequote all
Iain328 said:
About last Oct the twunts at UA decided to change the program to an AMEX card which is bloody useless. Over 50% of my CC expenditure has had to be on my "reserve" HSBC mastercard ever since because so many places don't take Amex.
Hardly anywhere doesn't take Amex.

All department stores, petrol stations, supermarkets, airlines, train companies, most clothes shops, most restaurants, most high street shops. I never see this problem - why do so many others?

tamore

7,782 posts

290 months

Wednesday 18th March 2009
quotequote all
ipitythefool said:
Iain328 said:
About last Oct the twunts at UA decided to change the program to an AMEX card which is bloody useless. Over 50% of my CC expenditure has had to be on my "reserve" HSBC mastercard ever since because so many places don't take Amex.
Hardly anywhere doesn't take Amex.

All department stores, petrol stations, supermarkets, airlines, train companies, most clothes shops, most restaurants, most high street shops. I never see this problem - why do so many others?
i binned my amex nectar card as i found there were several places, including online which didn't take it.

ipitythefool

12,832 posts

254 months

Wednesday 18th March 2009
quotequote all
tamore said:
ipitythefool said:
Iain328 said:
About last Oct the twunts at UA decided to change the program to an AMEX card which is bloody useless. Over 50% of my CC expenditure has had to be on my "reserve" HSBC mastercard ever since because so many places don't take Amex.
Hardly anywhere doesn't take Amex.

All department stores, petrol stations, supermarkets, airlines, train companies, most clothes shops, most restaurants, most high street shops. I never see this problem - why do so many others?
i binned my amex nectar card as i found there were several places, including online which didn't take it.
Small merchants but that's about it.
Probably 5% of my spend has to go on Visa/MC because Amex isn't taken.

For the benefits I get from Amex this is a tiny inconvenience.

emicen

8,706 posts

224 months

Wednesday 18th March 2009
quotequote all
ipitythefool said:
tamore said:
ipitythefool said:
Iain328 said:
About last Oct the twunts at UA decided to change the program to an AMEX card which is bloody useless. Over 50% of my CC expenditure has had to be on my "reserve" HSBC mastercard ever since because so many places don't take Amex.
Hardly anywhere doesn't take Amex.

All department stores, petrol stations, supermarkets, airlines, train companies, most clothes shops, most restaurants, most high street shops. I never see this problem - why do so many others?
i binned my amex nectar card as i found there were several places, including online which didn't take it.
Small merchants but that's about it.
Probably 5% of my spend has to go on Visa/MC because Amex isn't taken.

For the benefits I get from Amex this is a tiny inconvenience.
I've had less than 10 places refuse my Amex in a good 2-3yrs of having it.

In half of these, it was look at the card and say they dont take it, the other half the PDQ machine refused the transaction.

Only online services I've found that dont take it are utility companies. Scottish Power and Glasgow City Council namely.

tamore

7,782 posts

290 months

Wednesday 18th March 2009
quotequote all
i was using cards in belgium a lot at the time, and plenty of places don't take visa and mastercard, let alone amex!

andy400

10,728 posts

237 months

Wednesday 18th March 2009
quotequote all
ipitythefool said:
Iain328 said:
About last Oct the twunts at UA decided to change the program to an AMEX card which is bloody useless. Over 50% of my CC expenditure has had to be on my "reserve" HSBC mastercard ever since because so many places don't take Amex.
Hardly anywhere doesn't take Amex.

All department stores, petrol stations, supermarkets, airlines, train companies, most clothes shops, most restaurants, most high street shops. I never see this problem - why do so many others?
I find a lot of places that refuse Amex. The difference, I think, hopefully without sounding too pretentious, is that I tend to shop in smaller, individual, independent shops and restaurants rather than high street chains, who, of course, all take Amex. The smaller independents won't/can't pay the higher Amex fees.

andy400

10,728 posts

237 months

Wednesday 18th March 2009
quotequote all
LukeBird said:
Education not regulation.
If people understood APR and interest rates they'd look differently on it
Heard a radio programme, with some people being interviewed in the street who thought the higher the APR on a CC, the better!! yikes

BigBen

11,808 posts

236 months

Wednesday 18th March 2009
quotequote all
My Amex card has an eyewateringly high APR because the annual fee is included in the figure. However removing the fee (which gets other benefits concerning BA miles use / earning) makes it comprable to other cards.

It is the least accepted of the major cards in the UK / Europe but ubiquitous in the US where I do most of my business travel

Ben

emicen

8,706 posts

224 months

Wednesday 18th March 2009
quotequote all
andy400 said:
ipitythefool said:
Iain328 said:
About last Oct the twunts at UA decided to change the program to an AMEX card which is bloody useless. Over 50% of my CC expenditure has had to be on my "reserve" HSBC mastercard ever since because so many places don't take Amex.
Hardly anywhere doesn't take Amex.

All department stores, petrol stations, supermarkets, airlines, train companies, most clothes shops, most restaurants, most high street shops. I never see this problem - why do so many others?
I find a lot of places that refuse Amex. The difference, I think, hopefully without sounding too pretentious, is that I tend to shop in smaller, individual, independent shops and restaurants rather than high street chains, who, of course, all take Amex. The smaller independents won't/can't pay the higher Amex fees.
Without sounding too much of a bd, hopefully, I usually get away with using mine in such shops. I have a Lloyds Amex which doesnt look like one, so a lot of such places will accept my card yet tell my dad to do one when he tries using his Amex Amex.

Separates the "we dont take Amex" from the "we'd rather not take Amex".

andy400

10,728 posts

237 months

Wednesday 18th March 2009
quotequote all
emicen said:
andy400 said:
ipitythefool said:
Iain328 said:
About last Oct the twunts at UA decided to change the program to an AMEX card which is bloody useless. Over 50% of my CC expenditure has had to be on my "reserve" HSBC mastercard ever since because so many places don't take Amex.
Hardly anywhere doesn't take Amex.

All department stores, petrol stations, supermarkets, airlines, train companies, most clothes shops, most restaurants, most high street shops. I never see this problem - why do so many others?
I find a lot of places that refuse Amex. The difference, I think, hopefully without sounding too pretentious, is that I tend to shop in smaller, individual, independent shops and restaurants rather than high street chains, who, of course, all take Amex. The smaller independents won't/can't pay the higher Amex fees.
Without sounding too much of a bd, hopefully, I usually get away with using mine in such shops. I have a Lloyds Amex which doesnt look like one, so a lot of such places will accept my card yet tell my dad to do one when he tries using his Amex Amex.

Separates the "we dont take Amex" from the "we'd rather not take Amex".
Not the case here, as I went through a period of just not buying, and leaving the shop if they refused my Amex. I tend not to do that now, as I've mellowed somewhat, but it did clear up the "we dont take Amex" from the "we'd rather not take Amex" issue for me.

AndyAudi

3,231 posts

228 months

Wednesday 18th March 2009
quotequote all
Fat Richie said:
Would they not be better hammering the banks to bring down the ridiculous interest rates that these cards charge (eg: Mint, 1.94% monthly on purchases - crap with maths but that's around 16%+ pa?), particularly considering how low base rate is?

What does the panel think?
There is nothing wrong with the levels of interest rates on CC cards. What is wrong is individuals using Credit cards as a source of long term Debt. These rates should actually discourage their use. Their rates should be comparible with short term small overdraft rates which I believe are actually charged at a similar rate. Low borrowing rates are usually joined with minimum periods of time/redemption penalties and arrangement fees etc.

sidicks

25,218 posts

227 months

Wednesday 18th March 2009
quotequote all
emicen said:
I made it 27.4% and 25.9% respectively?

1.0204^12 = 27.4
1.0194^12 = 25.9
Sounds about right!
Cheers
wink
Sidicks

Iain328

12,776 posts

212 months

Wednesday 18th March 2009
quotequote all
andy400 said:
ipitythefool said:
Iain328 said:
About last Oct the twunts at UA decided to change the program to an AMEX card which is bloody useless. Over 50% of my CC expenditure has had to be on my "reserve" HSBC mastercard ever since because so many places don't take Amex.
Hardly anywhere doesn't take Amex.

All department stores, petrol stations, supermarkets, airlines, train companies, most clothes shops, most restaurants, most high street shops. I never see this problem - why do so many others?
I find a lot of places that refuse Amex. The difference, I think, hopefully without sounding too pretentious, is that I tend to shop in smaller, individual, independent shops and restaurants rather than high street chains, who, of course, all take Amex. The smaller independents won't/can't pay the higher Amex fees.
Same.

I use the Amex card as option one - always just hand it over & wait for it to be refused. Some examples of places that won't take it: Toyota dealer for a £500 deposit on a car, my Dentist, numerous on-line merchants (Play.com, Game etc). Paypal charge a fortune for using Amex - oh and Maranello Parts won't take it either!

The supermarkets take it and so do petrol stations as a general rule.

Life was much more straightforward when I had a Visa card - EVERYBODY takes that.


okgo

39,209 posts

204 months

Wednesday 18th March 2009
quotequote all
Amex are not accepted in smaller businesses really, don't they charge the retailer something like 7%? Mastercard charge 2% I think..

LukeBird

17,170 posts

215 months

Wednesday 18th March 2009
quotequote all
andy400 said:
LukeBird said:
Education not regulation.
If people understood APR and interest rates they'd look differently on it
Heard a radio programme, with some people being interviewed in the street who thought the higher the APR on a CC, the better!! yikes
Jesus! eek

I've never heard that before.
That just proves my original comment!!