News

**MSE Andrea** · 23-05-2005, 12:46 PM

This thread is specifically to discuss the content of the

Barclaycard Existing Customers Loophole Article

To discuss or ask a question about this article: click reply

creditman · 23-05-2005, 1:30 PM

This offer which was due to end at the end of the month has now been changed on the Barclaycard website to 6.9%.

**MSE Martin** · 23-05-2005, 3:19 PM

Quite right it has changed. And the article has now been changed. Actually your post didnt just prompted me - the Barclaycard press office saw it and spoke to their product team - first it'd heard as well

(you can read more details about this in m'new blog which i'm launching later this week)

Milarky · 23-05-2005, 6:03 PM

If I understand this thread, it's drawing attention to the fact that Barclaycard's standard terms and conditions offers new cardholders a 6.9% life of balance rate, but that they also make this available at other times too - but this isn't stated as a term & condition? [I've just looked at my old agreement and the 6.9 rate is only decsribed as for new customer offer - see term '3.4' ]

What about second cards? As I understand it existing customers are eligible to apply for a second Barclaycard [a 'Mastercard' if you already have 'Visa' and vice versa] which comes with the 6.9 life of balance offer? Could this not be be a better option sometimes - I've not seen the second card [and it's possible uses] discussed much here.

dag · 23-05-2005, 7:50 PM

I don't think this offer is peculiar to Barclaycard. I've had a Lloyds TSB Classic card for a while - and whenever I've asked about balance transfers, they've usually offered me 6.9% for life of balance. It's not written down anywhere, and they don't mention it on the web site.

Also - a while ago, I had a balance on a Halifax Classic card. They kept on sending promotional cheques out, but the interest rate was ridiculously high, over 17% APR. I've now cleared the balance. They still keep sending the promotional cheques - but the rate has plummeted to 6.9% life of balance - as long as I use the cheques before a certain date. Even if I don't bother, they invariably send me more cheques a few weeks later.

Pity they can't beat my cahoot flexible loan, which is also at 6.9%. Oh well.

baby frogmella · 23-05-2005, 9:02 PM

Hi
Why on earth do Barclaycard charge 2% handling fee for all balance transfers? Is this a norm for all credit card companies now? Cos last time i did a balance transfer (couple of years back) i wasn't charged any fee!!!!....uurrrrgggggghhhh makes me so angry!!!

Buzz67 · 23-05-2005, 10:49 PM

Can anyone tell me how this offer would work with the 0% rate for balance transfers that Barclaycard were hammered on. I've got the Barclaycard Platinum card and spend 10p per month (by Paypal account!) thus not getting charged interest for the balance transfer I made to it. My question really is what will happen if I balance transfer to Barclaycard from my Capital One card, will I be charged 6.9% or 0%? Are you still able to balance transfer for 0% on Barclaycard Platinum or has that ability ended?
Phew, lots of questions for my first post!!!

Milarky · 23-05-2005, 11:10 PM

Quote:

Originally Posted by baby frogmella

Hi
Why on earth do Barclaycard charge 2% handling fee for all balance transfers? Is this a norm for all credit card companies now? Cos last time i did a balance transfer (couple of years back) i wasn't charged any fee!!!!....uurrrrgggggghhhh makes me so angry!!!

Barclaycard have had the 2% fee written into their T&Cs quite for some time - but have often waived the right to charge in order it to drum up business. Only latterly have they chosen to apply fees to new account holders as a 'standard'.

[Someone has posted on a different thread recently that there was a 0% offer -probably with 2% fee for new customers coming in June but no details as yet. Let's discuss a scenario here, just to pass the time....

BC applies payments to the lowest rate first. Therefore if you aready have a life of balance rate on your BC [say 5.9%, with no fee, which was the most recent offering to exisiting customers] and they kindly up your credit limit to allow you to take advantage of such an offer - 0% for 9 months say with 2% fee - between what you had outstanding and 90% of the new limit - they ought to start collecting payments on this balance first, since it is [for now] at a lower rate than your other balances. For once it would make sense to be paying the 0% balance off first in this way - because it will revert to a much higher after 9 months. The 'trick' I am imagining is that 9 minimum payments plus a shunt at the end will just exactly clear out the 0% balance as it is due to leap up to 15.9% or whatever. Then, because the residual balance would simply consist of the remaining 5.9% life of balance you would move on to paying this off and no nasties. Why would you bother to borrow for just 9 months and pay a 2% fee? Well, it equates to borrowing at around 2.7% - which is cheaper than the 5.9% isn't it?

YES, before anyone says: "why not pay off the whole of the 5.9 then just transfer the whole the balance back at 0% plus fee?", it might save you money in the short run, but leaves you vunerable because you then definitely have to hunt around for more deals]

zcaprd7 · 23-05-2005, 11:26 PM

Quote:

Originally Posted by Buzz67

Can anyone tell me how this offer would work with the 0% rate for balance transfers that Barclaycard were hammered on. I've got the Barclaycard Platinum card and spend 10p per month (by Paypal account!) thus not getting charged interest for the balance transfer I made to it. My question really is what will happen if I balance transfer to Barclaycard from my Capital One card, will I be charged 6.9% or 0%? Are you still able to balance transfer for 0% on Barclaycard Platinum or has that ability ended?
Phew, lots of questions for my first post!!!

I wouldn't touch your card if you have that deal - it was one of the best - any subsequent transfers won't be as good, and will get paid off last as well...

Milarky · 23-05-2005, 11:37 PM

Quote:

Originally Posted by Buzz67

Can anyone tell me how this offer would work with the 0% rate for balance transfers that Barclaycard were hammered on. I've got the Barclaycard Platinum card and spend 10p per month (by Paypal account!) thus not getting charged interest for the balance transfer I made to it. My question really is what will happen if I balance transfer to Barclaycard from my Capital One card, will I be charged 6.9% or 0%? Are you still able to balance transfer for 0% on Barclaycard Platinum or has that ability ended?
Phew, lots of questions for my first post!!!

Welcome Buzz67,

If you have that '0% for life' card and only have to spend 10p a month [not the '£50' one which was withdrawn] then you've asked a very good question.

A transfer today would at 6.9%. The trouble with that is that your old deal has a default life of balance rate [if you don't spend in a particular month] of '6.9%' also. Had the newer rate been 5.9% then I'd hazard that they would take that off first since 5.9 is lower than '6.9' even if you don't actually pay 6.9 on it because of the way you are using the card. But if you put a rate of 6.9 with 6.9 then it's anybody's guess.[NOTE I have 2.9 life of balance on top of the original 0/6.9 and they are taking off the 2.9 first since technically its a 'lower' rate. What you'd need is: something lower than 6.9 with 'life of balance']

Actually let me quote what Barclaycard themselves say about this [wef from 23 Feb 2004]:

"If you're paying several different rates, and only pay off part of the balance, we'll reduce the upaid amountsin this order:

(a) any fixed special rate balances, including interest on them - lowest rate first.

(b) any special rate balances (and the interest on them) with a set end-date - lowest first

(c) any other interest or special charges (e.g. late payment)

(d) cash withdrawals

(e) your standard balance."

[taken from BC 'clear as crystal' leaflet - Feb 2004]

That doesn't answer the point however if both balances are 'fixed' rates and both at the same rate - it's still undecided. It could come off the '0 or 6.9' balance first, or off the 'always 6.9'.

But it does at least clear up my muddled thinking in my previous post where I suggested that a short term 0% added to a fixed 6.9% would reduce first just because it was at a lower rate - it wouldn't I now realise because it would count as a type 'b' balance rather than a type 'a'

So my own idea would have to be modified to:

If you already have a 5.9 life of balance on your BC and they offer you 0% for 9 months then only take this if your are confident of being able to shift that whole balance at the end of the nine months. If you were going to do that anyway then it makes more sense to just clear the 5.9 to another card and then BT back to BC at 0% on the whole balance

Rafter · 24-05-2005, 10:02 AM

baby frogmella,

Two years ago not as many people had cottoned on to the fact that they could stooze or pay no interest on their borrowings just by moving them every 6 months or so.

Barclaycard and others started to lose money so imposed a fee to discourage this.

There are still a few out there who don't charge, Virgin for one, but not sure how long this will last.

R.

ti1980 · 24-05-2005, 9:19 PM

I phoned up Barclaycard today to see what they could offer me and they said the best on offer at the moment was 5.9% on balance transfers for life, also there would be NO fee.

This would be available til the end of June.

I want to do a balance transfer but it will take me til July when I can clear the balance off my card unfortunately. I don't want that 5.9% turning into something higher but thats a risk I will have to take.

ikr2 · 25-05-2005, 4:07 PM

Can I just say that the latest Money Tip email made me think that us "spend £1 a month and get 0% on our balance transfer for life" Barclaycard users wer ein trouble. The email said,

"Barclaycard has changed its hidden deal for existing customers allowing cheap long term borrowing."

But I don't think it affects me. Is that right?

**MSE Martin** · 25-05-2005, 4:42 PM

Yes this is only for people newly doing the deal. If you are 0% for life customer don't do anything - nothing will beat that deal (providing your following my description for managing it)

As for 5.9% life of balance offer above - this won't change. The recent rate change isn't for people who 'already have the deal' its for people 'now talking out the deal' so if you're offered a 5.9% lob - grab it!

wilbur111 · 05-06-2005, 11:53 AM

In Martin's list of Balance Transfers Available, it says that Barclaycard is offering 2.9% life of balance with a 2% fee. I understand that it's not worth paying the 2% for a mere 9 month's of 0%, but is it worth taking it for life of balance?
And if so, is it only for certain amounts?
(I tried to search for an article discussing this but I couldn't find one)

Matt_EA · 31-08-2005, 12:37 PM

I'm a little unfortunate in that I have an Egg card on standard interest, and don't seem to be getting accepted for new cards at the moment.

I've just taken advantage of the Barclaycard loophole at6.9% for life-of-balance, and it has occurred to me that if they continue this offer, or even if their 'life-of-balance' rate gets a little higher in the future, I could wait until I've paid off a grand or so and then transfer another grand onto the offer from my Egg card. Would that approach save me any money long-term?

Ghost Dog · 09-10-2006, 10:12 PM

Slightly OT, but other posters keep mentioning the BarclayCard 0% for life deal. I received this month's statement and they have charged me 6.9% on my original transfer. A long conversation ensued, the gist of which was that they claim never to have had such a deal, that I have always paid 6.9% (my statements tell a different story) and that they have "lost" my application and credit agreement!

Anyone else had this happen and has anyone held on to a copy of the original ternms and conditions, I pruned my filing cabinet recently and appear to have chucked them out. Help!

kempy17 · 07-01-2007, 9:40 PM

I have had a Barclaycard (for my sins) for some 18 years or so now but have on occasions completely paid off any owed balances as well as racking up quite hefty amounts in owed credit.

Currently however, I have a zero balance and have done now for the last 4 months or so. Upon hearing the loophole information, I thought it wise to transfer another balance (on a card which currently charges 15.9% or so) to the lifetime rate of 6.9%. To my shock however, I have had the transfer request rejected as I 'do not have sufficient Barclaycard usage history' and therefore, my account has not got any interest rate or balance transfer offers at present. What a load of cobblers. I cannot believe I have been a customer of Barclaycard for such a long time, having probably spent hundreds of pounds over those years on interest and yet, they would prefer me to pay interest to another card company.

Has anyone else experienced this shambles of a ruling recently? Any suggestions what I should do (except the obvious - cut the ******g card up)?

Thanks

uselesswith£ · 09-01-2007, 10:01 AM

I've been a Barclaycard customer for 14 years. At present I owe £3500. I always try to pay more than the minimum payment but have never paid off the balance in full. I am being charged interest at 19.9%. I have asked them to reduce the interest rate with no luck. This is my only credit card and I am reluctant to apply for another in order to balance transfer for fear of refusal as I am an unemployed single mum. Any suggestions???? Apologies if this is posted in the wrong place....I'm really new to all this.

vwman · 09-01-2007, 10:22 AM

Quote:

Originally Posted by uselesswith£

I've been a Barclaycard customer for 14 years. At present I owe £3500. I always try to pay more than the minimum payment but have never paid off the balance in full. I am being charged interest at 19.9%. I have asked them to reduce the interest rate with no luck. This is my only credit card and I am reluctant to apply for another in order to balance transfer for fear of refusal as I am an unemployed single mum. Any suggestions???? Apologies if this is posted in the wrong place....I'm really new to all this.

Hiya and welcome
It may be a good idea if you re-post this over on the Debt-Free Wannabe board, they may be able to suggest/advise you what the best course of action is for you to do, they are a very helpfull bunch there.

One thing that you should include in your post is a list of ALL your income and all your outgoings, and also a list of all your debts, original amounts borrowed and whats still owing, together with interest rates that you pay.

Good luck...