Barclayloan Plus

MRSTITTLEMOUSE

Can anyone tell me the difference between a barclayloan and a barclayloan plus.It states if applying online you will be appling for a barclayloan but you will get the same rate as the barclayloan plus,(6.3%) till beg.March.
There must be some difference with the terms and conditions or something but I can't find what it is.Sorry if this seems a vague thing to ask.

Rafter

MrsT,

I think it is all to do with advertising rules for loans.

If Barclays only had one loan product for all customers, it would have to advertise a typical APR of something like 10%, because customers wanting short term or low value loans or who have a poor credit history will often pay 10% or more for loans.

By creating Barclayloan Plus they can advertise a typical loan rate of 6.3% but make it clear the loan is only available to people earning over a certain amount or with good credit history.

Slightly sneaky, and all the banks do it. Effectively Barclays want to show that they do offer good rates for good customers, but because they also lend to customers who aren't so good, if they only offered one product, their advertising and position in best buy tables would be hit.

Rather stupid consequence of the government trying to make things fairer, but ending up complicating matters. It is also one of the reasons why people get the hard sell on payment protection insurance, because the cost of that doesn't have to be included in the APR calculation.

R.