Cards launched for customers with low credit rating
SAV Credit, which offers credit cards to customers who have been turned away by High Street Banks, has launched two new products.
The aqua Reward and aqua Advance cards are available to customers with a poor credit rating and offer credit limits of up to £1,600.
The aqua Advance card offers a reduced rate of 5 per cent a year for three years, as long as the customer meets payments and does not exceed their credit limit.
The aqua Reward card offers annual cash back of 3 per cent on all net monthly retail spending, up to a limit of £100 a year.
Both cards offer an initial representative rate of 34.9 per cent APR and cash advance rate of 39.9 per cent.
SAV’s Chief Executive Officer James Corcoran said: “Advance provides a clear route to a strong credit record and competitive rates for people who have had problems while Reward ensures they have the ability to earn cashback on everyday spending on their credit card.”
Although credit cards can help consumers manage their budgets, a recent study by the British Retail Consortium (BRC) identified a trend for more people to pay with cash.
The proportion of cash transactions increased by 5.7 per cent to account for 58 per cent of all retail transactions carried out in 2011, according to the ‘Cost of Payment Collection Survey’.
According to the BRC more people are using cash rather than credit as a way of managing their budgets.
Tom Ironside, British Retail Consortium Director of Business and Regulation said: “Customers have less money. They’re buying things only as and when they need them, shopping more often but spending less each time, and they’re more likely to be paying with cash.
“In 2010, financial worries were putting people off running up debt and they turned away from credit cards. Now times are even tougher and overall card use is down by 10.5% as people have switched to cash to better manage their spending.”