Vanquis Credit Card

Vanquis are a new entrant in the UK credit card market and they are special in the way that they offer great credit cards for people with bad credit record.

If you have applied for credit cards in the past and been refused, even by some of the bad credit card issuers, then give a try to Vanquis credit card - Vanquis may have a solution for your needs.

The abacus card from Vanquis is available to people who have no credit history so if you need your first credit card to build up your credit rating this could be a great credit card to startup with. However, even if you have had bad credit in the past, even if you have had CCJ's Vanquis could help – just give it a try!

Anyways, the interest rates on the cards will be higher compared to other cards on offer in the market, but the interest rate reflect the offer of the credit card and with an huge and staggering APR of 39.9% it is a card to use with very high level of caution to rebuild your history, but if you desperately need a credit card and have very few options this could be a great deal. Good point is that there is no annual fee and you get up to 56 days interest free if pay your bill off in full each month.

Details and features of Vanquis Credit Card

Introductory Balance Transfers	n/a
Monthly Rate	n/a
Period	n/a
Introductory Purchases	n/a
Monthly Rate	n/a
Period	n/a
Standard APR	39.9% (typical)
Monthly Rate	2.84%
Cash Advance APR	46.19 %
Cash Advance Fee	5% (Min £2.50)
Minimum Payment Required	3% (Min £5)
Annual Fee	None
Loyalty Points	None
Travel Accident Insurance	None
Free Purchase Protection	None
Foreign Usage Fee	2.75%

Other Vanquis Credit Card Features and Benefits

• No annual fee for Vanquis Credit Card is one of the best plus points
• Up to 56 days interest free on purchases
• Full Visa card
• Chip and Pin available for those petty purchases and security

Vanquis Credit Card Final Summary Review The Vanquis Credit card is definitely one the best options if you are just starting to use a credit card and have no or bad credit - even if you have CCJ's or other financial problems in the past. A great first step in repairing your credit history!

Link to previous articles: Capital One Credit Card GM Platinum Credit Card Egg Credit Card British Airways Credit Card BT Credit Card HSBC Credit Card

Credit card statement

Your statement is your guide to your credit card. It tells you everything you need to know about your account since your last statement, the total amount you owe, any interest owing on what you’ve borrowed and the minimum repayment you have to make that month.
Here we detail some of the common features and terms included on a standard credit card statement. If you require any further explanation about the information contained on your credit card statement or spot any suspicious transactions, please be sure to read the ‘getting help’

Outstanding balance

The outstanding balance tells you how much you owe in total.

Minimum repayment

Most companies insist you make a minimum repayment each month if you owe money. If you only ever make the minimum repayment it will take you longer to pay off your debt and will cost you more – it’s not recommended.

Payment date

This tells you the date by which your payment must be received by your credit card company. It will need to be sent a specific number of working days in advance of the payment due date, depending on what repayment method you use. Your statement will advise you how soon in advance of the payment due date your payment needs to be sent. If you don’t pay at least the minimum amount requested you may incur charges and damage your credit rating.

Your card’s APR

The APR (Annual Percentage Rate) gives you a measure of the total cost of borrowing on your credit card over a year. It can be a good way to compare the prices of different credit cards as generally the lower the APR the less interest you will have to pay.

Interest rates, fees & charges

This shows you the interest rates for different types of borrowing. For example, the interest rate for purchases in a shop may be different from the cost of getting cash out of a cash machine

Previous Article: What is APR: Definition of APR

What is APR? Definition of APR

APR stands for the Annual Percentage Rate of charge. You can use it to compare different credit and loan offers. The APR includes important factors such as:

• the interest rate you must pay;
• how you repay the loan; the length of the loan agreement (or term); frequency and timing of installment payments; and amount of each payment;
• certain fees associated with the loan; and
• Premiums for payment protection insurance that the lender chooses to make compulsory.

All lenders have to tell you what their APR is before you sign an agreement. It will vary from lender to lender. Generally, the lower the APR the better the deal for you, so if you are thinking about borrowing, shop around.

Example 1:

If you borrow £1,000 for one year at 20% interest, and at the end of the year you repay a lump sum of £1,200:
• you will be paying an interest rate of 20%; and
• the APR will also be 20%.

Example 2:

If you borrow £1,000 for one year at 20% interest, and pay throughout the year in equal monthly installments (12 x £100 = £1,200),
• you will still be paying an interest rate of 20%; but
• The APR, however, will be roughly 40%.

Example 2 is more expensive because you are paying back the £1,000 gradually throughout the year. In Example 1 you have the benefit of being able to access the £1,200 for the whole year, which you could invest and earn interest on. By paying in instalments you're losing out; this increases the cost of the loan - hence the higher APR.

Questions to ask the lender

If you find a deal with a low APR, ask the lender the following questions:
• Does the interest included in the APR vary, or is the rate fixed?
If the rate is variable, your repayments could go up or go down. If the rate is fixed, your repayments will stay the same.
• Are there any charges that are not included in the APR?
This could include charges for services such as optional payment protection insurance.

If so, make sure you understand:
o what the charges are;
o whether you really need the services offered;
o how much you would have to pay; and
o when you would have to pay.

• What are the conditions of the loan or credit and do they suit you?
For example, do you have a choice about how and where you make the repayments? If you suddenly have spare money, can you pay the loan off early - without penalties?

• Can you afford the monthly payments?
A more expensive loan (with a higher APR) could have lower monthly payments if they are spread out over a longer period of time. That might suit you better if your budget is tight, even though you would pay more in the long run.

Previous Article: Protecting your Credit Card from fraud