Barclaycard Minimum Payments

lesret111

On numerous occasions looking back at my previous Barclaycard monthly credit card statements I have noted that if the minimum payment only is paid the following month shows an account balance outstanding increase.

It appears Barclaycard are systematic undercharging on the monthly interest so if you only pay the monthly minimum the balance will continue to rise.

After contacting Barclaycard I was informed " well pay more than the minimum payment ".

I would have thought that what they are doing is both illegal and breaking their own terms and conditions.

Any advise Thank You.

StuC75

+1 For barclaycards instruction to pay more..

If they were undercharging interest then your balance would be going down.

Monthly Interest depends on previous balances \ when purchases made etc (i.e. only interest free if prev balances paid in full within the 50 odd dats). where as payments are based on statemented balances - so depending on your purchase patterns you could result in these differences...

e.g. on my virgin card - monthly dd is £25 min pmt - Allways pay in full anyway as additional payments..

But the statement quoted expected interest of £25.19, this months has expected interest of £4.. so really comes down to how the card is used..

InsideInsurance

The minimum payment is fixed in the contract terms and conditions and the monthly interest is variable.

It is never advisable to simply pay the minimum payment and no bank claims that it is. Simply that by paying the minimum payment then they won't chase you for non-payment

blisteringblue

Barclaycard are also the only credit card I know where it is "difficult" to make an additional payment. It you pay extra in advance of your dd then the monthly amount taken is Minimum minus the extra payment.

The only way I've found to get through extra payments is the week between your DD and the new statement date.

But then again I guess they are not in business of wanting you to pay your card off.

And judging by the way they are leading the Cartel of Libor Manipulating Gangsters are we really surprised?

bargainbetty

lesret111 wrote: »

After contacting Barclaycard I was informed " well pay more than the minimum payment ".

I would have thought that what they are doing is both illegal and breaking their own terms and conditions.

Any advise Thank You.

No, it's not illegal, and it is in their terms and conditions. You agree to a minimum sum, and the interest rates. If you pay less than it costs in interest, then yes, it will go up. This is a business, you are paying for a service. How much you pay is down to you on this one.

Their advice is sound - pay more than the minimum payment. Alternatively, look for a different card provider with a better rate. But still pay more than the minimum, even a few quid, if you can.

GooliesOfFire

blisteringblue wrote: »

Barclaycard are also the only credit card I know where it is "difficult" to make an additional payment. It you pay extra in advance of your dd then the monthly amount taken is Minimum minus the extra payment.

I'd like to see them do that to me lol.. I don't pay by DD, but my minimum to pay was something like £8 last time I looked and I paid £300 by debit card this month. I'm wondering how their DD would work then. Surely they wouldn't credit my current account with £292 :eek:;)

DavidDebt

As far as I know they are required to charge at least 1% of outstanding balance + Interest from the period + any default changes / fees

This is to ensure that your balance is always going down.

David