Credit card rates

[shakotan]

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]

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]

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%.

2.04%pcm = 27.5%pa shirley?

[emicen]

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]

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]

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]

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]

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]

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]

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]

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]

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!!

[BigBen]

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]

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]

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]

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]

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

Sidicks

[Iain328]

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]

Amex are not accepted in smaller businesses really, don't they charge the retailer something like 7%? Mastercard charge 2% I think..

[LukeBird]

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!!

Jesus!

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