New credit card with almost 70 per cent interest

16 February 2005
A new credit card with interest charges of up to 69.9 per cent is being offered to people with poor credit histories.

The card, provided by Vanquis, part of Provident Financial, is being marketed "for people on moderate incomes", BBC News Online reports.

Provident Financial specialises in offering credit to those who have been turned down by mainstream lenders, and defends its new card.

"Our cards are for people who may have had problems in the past or those on modest incomes and therefore we have to price based on the risk involved," said David Stevenson, a company spokesman.

The consumer magazine Which? advises those with a poor credit history to look again at mainstream lenders before resorting to a card such as this.

"People should look at the rates in competition to other interest rates that are available elsewhere," said Mike Naylor, principal researcher at Which?.

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