Barclaycard interest rate reduction!

Tryingtogetsorted

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

alim0nkey

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

Tryingtogetsorted wrote: »

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

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

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?

Hunger4Unger

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.