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Littlewoods Interest rate 39.9%!

  • 26-09-2009 8:56am
    #1
    darc
    Closed Accounts Posts: 677 ✭✭✭


    Just a warning for anyone thinking of buying on credit from Littlewoods (they make it terribly easy to do so).

    Not only are their prices higher than most stores they also charge a money lender rate of interest.

    From Littlewoods website. The annual percentage rate (APR) for this agreement is variable and is currently 39.9%. We may vary the interest rate at our discretion at any time, and will notify you of the variation, but will not increase it above a maximum of 43.7% APR. The current annual flat rate of interest is 34.01191%. Interest is charged on the daily current balance for the period covered by your statement at the simple daily variable rate of 0.09318% and is applied on each statement date.

    Witch ECB rate at 1%, mortgage rates at 3%, personal loan rates at circa 8% and many credit cards under 15%, this is a disgrace.


Comments

  • #2
    eth0_
    Registered Users, Registered Users 2 Posts: 10,846 ✭✭✭✭eth0_


    Most store cards carry a similar rate of interest.
    It's not a disgrace, usually if you settle the balance within 30-60 days, there is no interest due.

    No one is forcing you to buy things on credit.


  • #3
    darc
    Closed Accounts Posts: 677 ✭✭✭darc


    Most store cards are 20% -30%.

    The post is more of a warning as during your registration process you are almost automatically given a credit account even if you want to pay by credit card. But unless you read the T&C's you are not properly advised of the phenomenal interest rate charged.

    Basically, in my opinion, littlewoods are trying to make everyone open a credit account and hope than a certain numebr of them won't pay on time and thus charge this exhorbinant interest rate.

    The post is just to serve as a warning of the hidden extras that can make a purchase on littlewoods awfully expensive.


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