Barclaycard new min payment deal implucations

Great_Hairdresser · 13 October 2009 at 4:01PM

Hi All

Barclaycard have wrote to me today and offered me "a little breathing space" by reducing my minumum payments for 12 mths.

"From 1st November your minimum payment will be equal to any interest charged plus 0.25% of your outstanding balance, or £5 (whichever is greater). This means you can pay less each month if you choose to, but will mean your balance takes longer to pay off. This change will happen automatically and will be shown on your November Statement."

So does this mean, I will be expected to pay interest only plus 0.25% for the next 12mths.

What implications does this have re my credit rating etc?

I fully intend to continue paying what I am at the moment, but my partner has just been made redundant so if we are stuck 1 mth a smaller payment could help us out.

Please help, Thanks in anticipation

Moggles_2 · 13 October 2009 at 4:14PM

As long as you continued to meet at least the minimum payment required each month (not saying you should do this), your credit rating would be unaffected.

McFilly · 18 October 2009 at 2:41PM

I have a 6.9% life of balance rate on my Barclaycard and have also been told that my minimum payment is being reduced, the same as mentioned in the first post of this thread. I presume that the 6.9% rate will still apply to the outstanding balance?

I am wondering whether now to take advantage of their offer and pay more off another card that I have that has a higher interest rate. Just wondered if anyone thought this would a good idea and also if anyone can confirm that my 6.9% rate which is for the lifetime of the balance will still remain in force?

withnell · 18 October 2009 at 3:12PM

Any rate on the account will remain - they're just offering you a better deal!

Milarky · 18 October 2009 at 3:24PM

Interesting that Barclaycard is selecting customers to pay reduced minimum payments where they pay rather more interest than 'normal' anyway. I have not been offered reduced repayments - which still carry a minimum of 2.25%. (Nothing to do, I suppose, with the fact most of my balance remains on the 'condtional-spend' 0% for-life basis?)