"Best" credit card you've ever seen.....

[beanbag]

I usually get three to four credit card offers in the post each week and usually I have a quick read through them in case I get a free clock radio when I sign up, however recently I received one from a company I can't remember the name of.....

The letter that came with the offer went along the following lines:

Dear Sir,

You've been chosen for our premium credit card....blah blah blah, offering you £500 of credit (500?!!! that's cr@p!), blah blah blah, at the competitive rate of 49.8% APR. (eh!? are they taking the p!$$?!?!?).

We would like to offer you this fantastic package all for £19 per annum. (WTF!? I get my credit cards free thank you!!!!)

Regards

Cr@p Credit Card Co.

Anyhow.....the thing is, who is stupid enough to go for one of these cards!? Only £500 credit for 49.8%APR AND you have to pay even more for the card itself!

What planet are they on!?

[wedg1e]

Probably has its head office in Nigeria, President is one Mdabinengi Mwatalelelei...

[towman]

Shirley the bank of PFI as approved by the cheshire cat.

[Pulsatingstar]

beanbag said:

Anyhow.....the thing is, who is stupid enough to go for one of these cards!? Only £500 credit for 49.8%APR AND you have to pay even more for the card itself! What planet are they on!?

People who are desperate, and have awful records. I used to work in this industry. We gave those to pretty much anyone knowing that a certain amout would go bad but still be able to get money from it.

I think one person did rake up about 30ks worth of debt though which is impressive!

[richa]

I think Barclaycard do one like that, a few hundred pounds credit limit, and a high interest rate (I think it is 24.9%). Hardly any credit checks to issue it, so those with CCJ's and defaulted loans (etc) can stack up even more debt!

[Smartie]

How about giving 'some' people some credit?

Maybe they've incurred bad debt due to a business failure or a marriage breakup or some other event not completely within their control?

Most "high street" lenders wouldn't want to know and so this would be a way to own a visa card for intnernet buying etc? Paid off each month its no more expensive than any other card.

[chris watton]

Smartie said:

How about giving 'some' people some credit? Maybe they've incurred bad debt due to a business failure or a marriage breakup or some other event not completely within their control? Most "high street" lenders wouldn't want to know and so this would be a way to own a visa card for intnernet buying etc? Paid off each month its no more expensive than any other card.

I am sure that is 100% true in some cases, some people have just had a rough deal at some time in their life, however,,,,You do have to ask yourself how a low paid factory worker, or someone just on benefits can afford that huge 60" plasma screen and and upwards of £50 per month for SKY in his mid-terraced council house, and their kids adorned in the most expensive 'designer gear', either they're into crime in a big way, ripping off the system at our expense, or, just possibly racking up big loans on things they couldn't afford otherwise. Some people just don't look at the bigger picture, too scary, so they live for the here and now, not realising what trouble they're going to get into, but the credit card companies are as bad letting them have it!

>> Edited by chris watton on Sunday 24th April 12:52

[Smartie]

but surely some blame(admitedly not all) should come down to the lender?

So if mr factory worker earns £250pw why give him a £15K credit limit on his card? When he hits it, offer him a loan to pay it off and leave him with his now "empty" credit card?

Slippery slope for the financially weak!

[chris watton]

Smartie said:

but surely some blame(admitedly not all) should come down to the lender? So if mr factory worker earns £250pw why give him a £15K credit limit on his card? When he hits it, offer him a loan to pay it off and leave him with his now "empty" credit card? Slippery slope for the financially weak!

Yep, you're right again , The whole advertising culture prey on these people, look at the type of ads they show (especially SKY!) in the daytime, in an ideal world what these companies do is no less than criminal!

[tinman0]

I disagree - you borrow the money - you pay it back.

You dont get handed £15k, you have to work your way up to it in many cases. You have to sign forms and send them back and so forth.

There is a process that you put yourself through to get access to the money. You then consciously walk down to Curries and buy the biggest screen that can fit in your chav mobile.

Lets make this clear - you then fritter it away and you blame someone else.

Get real. Your hole, you get yourself out.

[Smartie]

not disagreeing with that at all, of course you should pay your debts.

Just think that maybe it shouldn't be so easy for 'some' people to borrow money; returning to the OP, this card may be expensive, but it does have a legitimate use/reason for being.

[Balmoral Green]

The high APR is just the way the maths works out for calculating APR. It is high because of the very low credit limit and the amount that would be borrowed. Even if the flat rate was favourably low, the APR would make a Glaswegian loan shark blush.

Check out borrowing £10,000 over five years at a flat rate of say 4%, APR would be very low, sounds like a good deal. Now same flat rate, but £500 over 1 year, the APR is now huge, but no-one is ripping your legs off.

I couldnt give a damn about APR, it is supposed to be a guide to the true cost of borrowing, but its not really because the term changes it drastically and folks forget to compare term with term. All I want to know is the flat rate and doc fees and I can work it all out for myself thanks.



>> Edited by Balmoral Green on Sunday 24th April 17:17

[beanbag]

But why would I get such a card offer in the post!?

I've got an impecable credit rating (according to A&L) so where did they get my name from?

What makes it even more odd was the fact there was no contact number anywhere on the letter.....hmmmmm