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Scottish Trust Deed Forum
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Topic starter
29/10/2014 6:50 am
Good Morning Everyone,
Just a thought about these nice people at the credit card companies who 'help' you rebuild your credit rating.
If you are 'fortunate' enough to be accepted for one I would also recommend you download a Credit Interest Calculator and put in the outstanding amount you owe and also the minimum payment amount and have a look at the calculations.
Lets say for instance, you have a 39.9% APR Card which is fairly typical and you might have say, £300 outstanding on the card.
The result you will see is that you will never ever pay it off on a minimum payment in your lifetime! Is that scarey enough for you?
Now, consider, why they are so interested in 'helping you!'
Its not like the good old days of 0% cards where you borrow thousands and probably get charged a fractional sum.
Even the small credit limit they provide you will cost you dearly.
My advice would be not to take one, there are very few people who even with good intentions are disciplined enough to pay it off every month.
Just my morning thoughts for you! 🙂
29/10/2014 8:00 am
Hi DontDoDebt.
I guess every individual needs to weigh up the positives and risks of taking out such a card. The risks aren't insignificant.
Borrowing long term on a high rate credit card is certainly a massively expensive way to obtain credit. They really need to be paid off very quickly whenever used.
In some circumstances they can help to rebuild credit, can provide consumer protections you wouldn't get otherwise, can help in emergencies and might even be essential for those who travel with work and have to initially fund the costs before reclaiming them.
A very individual decision I think.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
29/10/2014 9:18 am
Hi Trust Deed Assistant,
Of course we all found credit cards incredibly useful over the years hence the reason we are all on here now! My main point regarding the 're build your credit ' providers is that at 39.9% APR you are transported at lightning speed back into an arena of debt you can't pay back. We are quick to condemn the payday loan lenders but this is equally insidious and it's disguised as helping you!
29/10/2014 9:44 am
I agree it's sensible to be a little sceptical of the help that any type of company is offering. That's just being a sensible consumer I suppose.
Some people will find they can use these cards to help themselves (rather than being helped). Others may conclude that the risks and costs outweigh the benefits.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
