Barclays - early loan repayment

emmajayne18_2

Good evening

I hae just had a call from Barclays about an existing loan and consolidating my credit card into one lump sum. I have been reluctant to do this in the past as I like to pay extra off my credit card as and when I have the funds. Barclays told me that they have changed their policy so you can call at any time and pay off extra from your loan. The calculate interest on a day by day basis.
Has anyone had any experience of this and can tel me whether it is true? I just find it hard to believe I suppose!
I would work out much better for me in terms of interest rate and monthly payment

CLAPTON

it's normal for interest on a loan to be calculated on a daily basis.

many loans allow overpayments so it's quite reasonable that Barclays allows this (all new loans must allow this)

make any overpayments to the loan with the highest APR

kloana

Yep, absolutely true and kosher

emmajayne18_2

Thanks for your help - I didn't realise that all loans had to allow this - really useful!

emmajayne18_2

kloana wrote: »

Yep, absolutely true and kosher

Thank you!
I think I was just surprised as it seems more like a CC agreement than loan but makes me very happy!

tonkinator

emmajayne18 wrote: »

Thanks for your help - I didn't realise that all loans had to allow this - really useful!

Loans have to accrue interest daily, I believe, but some will charge for paying off early. The max fee is 56 days interest on the closing balance (the amount you have to pay to clear the loan).

You are usually off paying off everything apart from a small amount, then that the small amount be collected with the next monthly payment.

If you do this, you will usually save a fair bit