Barclaycard interest increase

KT2802

Hi all,

Just a quick question around this and some other related questions! Thanks for your help.

I received a letter from Barclaycard yesterday stating that the APR of my card was increasing from 21.9% to 26.9%. I read the rate jacking article on this website and decided to call Barclaycard and request that they close my account and keep the current interest rate.

I have just done this and am now just about to cut the card up :eek: this feels really good though!! This may sound stupid I am assuming that closing the account means that I can no longer use the card and that I continue to pay the minimum every month plus whatever extra I can afford?

I am also assuming that this does not go on my file as an arrangement to pay as I am continuing with how I was paying but not making any more purchases?

I also have some other related questions about my debt in general (see signature). I have recently had lots of money 'issues' happen all at once. Half of my overdraft was recalled (I am now on an arrangement to repay for this) and then I received this letter about the interest increase. Both of these things happened out of the blue, I am aware that I have a large amount of debt but I always make the minimum payments plus any extra on time. My credit rating last time I looked was ok.

Just before these things came through, I took out a small pay day loan as things were desperate, but re payed this on time and have not taken anymore since. Do you think that the recall of overdraft etc is related to this? I can understand that payday loans suggest you are not managing your finances very well and I am aware that I am struggling. However it seems unfair that the bank may have recalled my overdraft etc because of this, especially when I paid the loan back on time and have not taken any more since.

I know that there is no definite answer to this and it may just be coincidence but just wondered what peoples thoughts were.

Thanks

[Deleted User]

Closing your account ins't an arrangement to pay - you can carry on paying down as normal.

The PDL cetainly won't help when lenders review your account. Though whether it has made a difference in this case is impossible to say. But a combination of a PDL, an overdraft and revolving card balance will act as warning signs.

heatherks

if you are definately NOT going to use your card again you can ask them to finish paying it at the old rate

KT2802

heatherks wrote: »

if you are definately NOT going to use your card again you can ask them to finish paying it at the old rate

Yeah that's what I ended up doing :cool2:

geekonthepc

Yeah sadly card providers can be quick to jack rates if they find reason to believe you seem to be less financially stable than you were. Like you've done, your best bet is to refuse the rate rise and pay off the card as you can. You can continue to pay off the card in stages until the debt is gone and the card company will only charge you the current rate - but you won't be able to add any new transactions at all (the card will be unusable). Once the debt is fully paid off, your account will automatically close.

I think now might be a good time to check your credit file and check everything is in good shape. Seeing payday loans on a credit file is not a good sign for lenders - it makes you look VERY desperate for money. Obviously I know circumstances were tight at the time, but it's always best to avoid them, there is nothing good about them.