Discretionary Commission Arrangements - Compaints and refunds

Vanquis Credit Cards can be dangerous tools in the wrong hands, as they are designed to provide access to high-interest credit for those with poor credit. Those who use Vanquis Credit Cards, however, run the risk of becoming indebted and having their credit rating ruined if they do not use the card responsibly.

First and foremost, it is important to understand exactly how Vanquis credit cards work. The interest rate on any given card varies from a low of 19.9% to a high of 39.9%. This is notably higher than standard credit cards. As such, these cards are designed for people with bad or little credit histories; they do not require a good or excellent credit score in order to qualify for one. Furthermore, Vanquis does not perform an affordability check before issuing a card, meaning there is no assessment of whether the borrower can actually afford to pay back the debt that has accrued.

This lack of affordability checks can lead people deeper into debt than they can handle. If borrowers use their Vanquis Credit Card like any other credit card, making purchases without taking into account their future ability to pay off said purchases, it is possible that debt could begin piling up quickly due to its high interest rate. For example, if someone took out £500 on a Vanquis Credit Card at an interest rate of 39.9% and made only minimum payments each month (which would amount to about £20), then it would take almost three years for them to pay off the entire £500 balance at an additional cost of £184 in interest payments. [1] In this case, the borrower would have paid out a total of nearly £700 (including both principal and interest).

Furthermore, this could have serious repercussions on someone's overall credit rating as well. Every time you miss a payment or make late payments on any loan or form of credit, your score will suffer as your reliability as a borrower will be questioned. [2] Additionally, having too much total debt in relation to one’s income is also seen negatively by lenders; this too could lead to your score dropping. [3] It goes without saying then that anyone who misses payments or takes on more debt than they can handle with their Vanquis Credit Card risks ruining their overall credit rating over time due to continuing negative entries being made onto their report.

Finally, it should be noted that there are better options for those looking for access to extra money than using a Vanquis Credit Card, despite how tempting the offer may initially seem due to its potentially lower fees compared with other forms of borrowing such as payday loans. [4] Before taking out any form of loan or line of credit, then, potential borrowers should always conduct research comparing available options and ensure they read through all terms and conditions carefully before signing anything so as not to put themselves in financial jeopardy down the line. [5] Additionally, seeking assistance from qualified professionals such as bank advisers or financial counsellors [6] is recommended if a person is unsure about taking on new debt or managing existing debt effectively in order to avoid ruining their overall financial health.

In conclusion, while Vanquis Credit Cards offer access to high-interest lines of credit for those with poorer quality scores ( and may initially appear to be more attractive than other forms of borrowing such as payday loans), potential borrowers should always take the time to research their options carefully, read all terms and conditions thoroughly, and potentially even seek professional assistance if they are uncertain about managing the credit responsibly and paying it back in a timely manner (neglecting proper affordability checks prior to issuing), because they can be dangerous tools in the wrong hands if not used responsibly and managed effectively; this could lead people into more debt than anticipated and ruin their overall credit ratings over time if not taken when using them. As a result, anyone considering applying for one should carefully weigh all pros and cons before doing so and assess what kind of impact it might have on their finances in the future, as well as seek help from professionals if necessary, to avoid putting oneself in financial jeopardy in the long run.