🗳️ ELECTION 2024: THE MSE LEADERS' DEBATE Got a burning question you want us to ask the party leaders ahead of the general election? Submit your suggestions via this form or post them on our dedicated Forum board where you can see and upvote other users' questions. Please note that the Forum's rules on avoiding general political discussion still apply across all boards.

Barclaycard interest rate reduction!

Options
I have to say I've been quite pleased with the recent reduction in mortgage interest rates, but have wondered why there hasn't been a similar reduction in credit card interest rates.

Imagine myh delight today therefore when I noticed that purchase interest on my most recent Barclaycard statement has been reduced to 3.5%!!!!! Barclaycard have added a paragraph on the statement to the effect that my standard and cash interest rates are linked to the Bank of England Base Rate and as such will decrease to reflect the current base rate of 1.5%. Well done Barclaycard!

Contrast this with my HSBC card rate of 19.9% purchase rate and Tesco Finance card who coyly give only a monthly rate (of 1.456% on purchases, which doesn't sound too good to me). Guess where I'll be making a balance transfer.

:j

Comments

  • alim0nkey
    Options
    You see this is what I find so confusing about the Capital One situation. They had reduced my rate right down so instead of my minimum payment pretty much paying just interest back, I was actually reducing my balance by quite a lot.
  • Cash_Flow
    Cash_Flow Posts: 1,103 Forumite
    Options
    I have to say I've been quite pleased with the recent reduction in mortgage interest rates, but have wondered why there hasn't been a similar reduction in credit card interest rates.

    Imagine myh delight today therefore when I noticed that purchase interest on my most recent Barclaycard statement has been reduced to 3.5%!!!!! Barclaycard have added a paragraph on the statement to the effect that my standard and cash interest rates are linked to the Bank of England Base Rate and as such will decrease to reflect the current base rate of 1.5%. Well done Barclaycard!

    Contrast this with my HSBC card rate of 19.9% purchase rate and Tesco Finance card who coyly give only a monthly rate (of 1.456% on purchases, which doesn't sound too good to me). Guess where I'll be making a balance transfer.

    Purchase apr 3.5%

    Cash interest rate of 1.5% apr

    are you sure about that:rolleyes:
  • Tryingtogetsorted
    Options
    I didn't say anything about interest rates on cash withdrawals, as I don't ever withdraw cash on a credit card. However I am absolutely right about the interest charged on current purchases - it says so very clearly on the statement, as I stated in my original post.
  • Bismarck
    Bismarck Posts: 2,598 Forumite
    Options
    sorry to be suspicious here.....did they say how long the new rate was for?

    you mention a balance transfer..what's the rate for that?
    For what I've done...I start again...And whatever pain may come ...Today this ends... I'm forgiving what I've done -AF since June 2007
  • Hunger4Unger
    Options
    Although Barclaycard state they have reduced the interest due to the decrease in the BOE rate, this can't be entirely the case as the cost and risk of lending has significantly increased as of late which is why all other credit card companies are increasing interest rates.
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 8 Election 2024: The MSE Leaders' Debate
  • 343.9K Banking & Borrowing
  • 250.3K Reduce Debt & Boost Income
  • 450K Spending & Discounts
  • 236K Work, Benefits & Business
  • 609.2K Mortgages, Homes & Bills
  • 173.4K Life & Family
  • 248.6K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards