Barclaycard Increases APR

trevrobwhite

I've just had a love e-mail from Barclaycard they are increasing there standard rate of interest from 16.9% to 21.9% a massive 5% jump.

I'm really stuck with my credit cards, work on house and a debt problem left me with 20k on 3 cards, which Barclaycard now own them all, I am meeting the minimum payments (just) and I have contacted them but they are not interested, I did ask if I could transfer to a lower rate of which they said no.

I've looked into Loans but no one will allow me to have a loan because of the 20k owed on cards even though the loan would be to repay this, because my house has dropped in value I cannot move any money there as well?

Is there any tricks I can do to get my debt on a lower APR so I can finally become debt free?

By the way I have never missed a payment and if it weren't for the declined loans by credit history would be perfect.

katsu

Look at Martin's articles on rejecting rate jacking (under the credit cards on the main site tabs above). The rate doesn't go up and you can't spend on the card any more but can keep slowly paying it off.

molerat

You can reject the rate increase but you will not be able to use the cards. If all you are paying is minimums then your credit history is far from perfect as you will have minimum markers against those cards and a mainstream lender will see that as struggling and will not touch you.

BugsyBrowne

molerat wrote: »

You can reject the rate increase but you will not be able to use the cards. If all you are paying is minimums then your credit history is far from perfect as you will have minimum markers against those cards and a mainstream lender will see that as struggling and will not touch you.

That's also another Myth IMO about paying the minimum,banks are there to make profit and surely customers who only make minimum Payments are better customers to the bank rather then those who make the bank no profit by paying in full.

We can all generalise how a banks computer system think but without actual facts it's hard know.

If a bank looks back on a customers credit history and only see minimum payments for 6 years but all on time with no missed payments then this surely is proof that the customer is good for credit as if he/she was struggling then that's what the late/missed payment markers are there for.

Late & missed payments are signs of someone struggling.

guesswho2000

Give them a call or submit a complaint via their secure messaging, I complained about my APR (despite the only balance being a 6.9% LOB transfer) and they reduced it by 8%.

dresdendave

BugsyBrowne wrote: »

If a bank looks back on a customers credit history and only see minimum payments for 6 years but all on time with no missed payments then this surely is proof that the customer is good for credit as if he/she was struggling then that's what the late/missed payment markers are there for.

Late & missed payments are signs of someone struggling.

I agree that from a profitability angle a customer paying the minimum is great for the bank. The issue for the bank is when they apply for further credit, how will they make the extra payments when they appear to be at their limit servicing their existing debts.

BugsyBrowne

dresdendave wrote: »

I agree that from a profitability angle a customer paying the minimum is great for the bank. The issue for the bank is when they apply for further credit, how will they make the extra payments when they appear to be at their limit servicing their existing debts.

Once again generalisation the fact remains we don't know but we can but speculate.

trevrobwhite

Thank-you all, I am secure messaging Barclaycard today and see what they say.

smithers1981

Instead of paying the minimum which will gradually decrease with the balance owed fix your payments at today's minimum, then as the amount owed goes down your payments will stay the same and you will pay card off many year quicker.

YorkshireBoy

BugsyBrowne wrote: »

That's also another Myth IMO about paying the minimum,banks are there to make profit and surely customers who only make minimum Payments are better customers to the bank rather then those who make the bank no profit by paying in full.

So if it doesn't matter (in your opinion), why has the industry gone to considerable lengths - and presumably also considerable costs - to include minimum payment markers on credit reports?

Or are you saying there are some banks who would actually prefer these customers?

Personally, my *opinion* is that these minimum payment markers are viewed negatively by lenders...unless accompanied by promotional rate markers. Even then, I always pay £1 more than the minimum on my 0% cards.

BugsyBrowne

YorkshireBoy wrote: »

So if it doesn't matter (in your opinion), why has the industry gone to considerable lengths - and presumably also considerable costs - to include minimum payment markers on credit reports?

Or are you saying there are some banks who would actually prefer these customers?

Personally, my *opinion* is that these minimum payment markers are viewed negatively by lenders...unless accompanied by promotional rate markers. Even then, I always pay £1 more than the minimum on my 0% cards.

The point I was trying to make is that we don't actually 100% know what goes on with computer scoring we can only generalise but they're not facts.

But yes the lenders have put minimum payments onto credit reports for a reason.