Don't just shop for it, Argos it. Don't just shop for it, Argos it.
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  1. #1

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    Default Don't just shop for it, Argos it.

    For all those facing financial ruin, Argos has the answer.

    http://www.guardian.co.uk/money/2008...t-credit-cards

    Low-income borrowers were today warned against signing up for an Argos payment card, which has an interest rate of up to 222.7%.

    The Easy Shop Card, which the retailer has launched in partnership with sub-prime lender Provident Personal Credit, is aimed at cash-strapped shoppers who want to borrow between £100 and £500 to spend in the store.

    The lender's website says applying for the card is "simple and straightforward" with "no complicated forms", and that borrowers can make "affordable, fixed, regular repayments - collected by a local agent".



    Local thug.



    However, the interest rates on offer are significantly higher than those available on standard credit cards, where APRs tend to be below 30%.

    On a £300 loan repaid over a year the website quotes a typical APR of 183.2%, while shorter-term borrowing attracts even higher rates.

    A consumer borrowing £100 on the card would be charged £35 in interest if they repaid it at a rate of £5 a week over 27 weeks, giving an APR of 222.7%.
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  2. #2

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    Those free big catalogues they give away ain't free you know...

  3. #3

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    A consumer borrowing £100 on the card would be charged £35 in interest if they repaid it at a rate of £5 a week over 27 weeks, giving an APR of 222.7%.


    Can someone show me the maths for this ?


    £35 on £100 in a year is 35% ?


    Paid in 27 weeks - approx 6 months = 70% ?? (still very high )

  4. #4

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    Quote Originally Posted by foritisme View Post
    A consumer borrowing £100 on the card would be charged £35 in interest if they repaid it at a rate of £5 a week over 27 weeks, giving an APR of 222.7%.


    Can someone show me the maths for this ?


    £35 on £100 in a year is 35% ?


    Paid in 27 weeks - approx 6 months = 70% ?? (still very high )
    I dunno but this calculator agrees with 222.7 APR
    http://brian-stewart.orpheusweb.co.u...t/equalapr.htm
    ..and the Javascript that does the calculation is mad..like most other financial cack:

    function CalcRate() {

    var p=getVal(document.input.credit.value);
    var i=getVal(document.input.initial.value);
    var a=getVal(document.input.repay.value);
    var n=Math.floor(getVal(document.input.number.value));
    var f=getVal(document.input.last.value);

    //Isaac's magic ...
    var x=1.0001; var fx=0; var dx=0; var z=0;
    do {
    fx=i+a*(Math.pow(x,n+1)-x)/(x-1)+f*Math.pow(x,n)-p;
    dx=a*(n*Math.pow(x,n+1)-(n+1)*Math.pow(x,n)+1)/Math.pow(x-1,2)+n*f*Math.pow(x,n-1);
    z=fx/dx; x=x-z;
    //alert("fx="+fx+"\ndx="+dx+"\nz="+z+"\nx="+x)
    }
    while (Math.abs(z)>1e-9);
    r=100*(Math.pow(1/x,m)-1);

    document.input.credit.value=TwoDP(p);
    document.input.initial.value=TwoDP(i);
    document.input.repay.value=TwoDP(a);
    document.input.number.value=n;
    document.input.last.value=TwoDP(f);
    document.input.apr.value=OneDP(r);
    }
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  5. #5

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    What idiot gets a store card? Or keeps a balance on a credit card come to that.

  6. #6

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    Quote Originally Posted by BrilloPad View Post
    What idiot gets a store card? Or keeps a balance on a credit card come to that.
    That'll be the peasants..you haven't heard of them have you.
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  7. #7

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    Quote Originally Posted by BrilloPad View Post
    What idiot gets a store card? Or keeps a balance on a credit card come to that.
    You answered your own question. Although in reality they do try to make it sound attractive by giving you free stuff when you open an account by using the card.

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    Quote Originally Posted by foritisme View Post
    £35 on £100 in a year is 35% ?
    Yep, but the APR figure shows what interest you pay taking into account the regular repayments made that reduce the principle during the term. An iterative solution would soon find it, if there's no easy closed form solution.

  9. #9

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    Quote Originally Posted by BrilloPad View Post
    What idiot gets a store card? Or keeps a balance on a credit card come to that.
    I keep 1 credit card maxed out, as it pays me to do so.

    As for store cards - try going to the local town centre on your lunch break and check out the amount of jobless retards allowed to spend money and you'll have your answer.
    Bored.

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