Over 110 UK credit cards independently reviewed by Fiscus Credit Cards
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Fixed Monthly fee from Cahoot
This card was last reviewed on Wednesday, 15 March 2006.
| Overall Rating: |
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| Issued By: |
Cahoot |
| Card: |
Fixed Monthly fee |
| Network: |
Visa |
| Category: |
Mid Interest |
| Acceptance: |
 |
| Insurance: |
Purchase |
| Service: |
Internet banking. Automated phone banking. |
| Comments: |
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| Pitch: |
"Choice, control and convenience. With the Cahoot Webcard, shop online without your plastic." |
| Typical APR: |
12% |
| Interest Free Days: |
46 |
| Minimum Repayment: |
- |
| Annual Fee: |
- |
| APR: |
- |
| Period: |
- |
| Charges: |
- |
| APR: |
- |
| Period: |
- |
| Type: |
No rewards scheme. |
| Description: |
- |
| Reward Rate: |
- |
| Period: |
- |
| Aimed At: |
PLEASE NOTE THAT Cahoot HAVE NOW DISCONTINUED THE FIXED MONTHLY FEE CREDIT CARD. The only credit card now offered by the online bank is the Cahoot Low Interest |
| Review: |
Card discontinued April 2004. The Cahoot Fixed Monthly Fee Card received our maximum 5-star overall rating when originally reviewed. Review... Before we get stuck into the review of this card, let us just consider how the Cahoot Fixed Fee credit card works. Rather than charge an annual percentage rate (APR) on your debt, this card charges a fixed monthly fee irrespective of how much you have borrowed. If for example, you have £3000 outstanding on your credit card, the best available APR card on the market is the Cahoot Low Interest card at 8.3% APR. This would see the accumulation of annual interest of £249. If instead you were to use the Cahoot Fixed Fee card, you would typically pay a monthly fee of £13.65 (although this figure varies depending on your credit history). This, when converted into an APR, works out at a remarkable 5.6%, half of the nearest non-Cahoot competitor. How can Cahoot offer such a great deal? As always, there’s a catch. Firstly, you have to have an exceptionally strong credit score – if you haven’t, then it is not worth contemplating either of the Cahoot cards. Secondly, you have to pay the fee every month, irrespective of your balance – even if you have no outstanding debt on your card. But if you do expect to clear your balances, then this is the wrong card for you. In that case, the best offer would be the Cahoot Low Interest card. This card is clearly focused on individuals with a great credit score that expect to have a substantial monthly balance. Cahoot can afford to offer a low interest rate because a) they know that the individuals using their card have a good credit rating and are therefore likely to pay up in the long run, and b) they know that they can expect to make money every month, irrespective of the debt (or lack of). Last but not least, we should point out the fantastic innovation of the Cahoot Webcard. If you are accepted for a Cahoot card, you are eligible for the webcard extra. Quite simply, it is a program that runs on your computer. When you surf the web and decide to make an online purchase, you run the webcard program. This program generates a unique credit card number specific to that particular transaction. This means that even if someone were to steal your credit card details, the card number stolen would not work. An excellent addition. In a nutshell, if you are eligible for this card, and you’re expecting to carry substantial debt of any form, then nothing beats the Cahoot Fixed Fee credit card; this deal beats many personal loan arrangements. |
| Verdict: |
- |
| Overall Rating: |
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