6% End of Life on unwanted CC?!

garynuman

Hi all

I've heard of people getting a deal when they attempt to close their unwanted credit cards. Thought I would share this..

I have a Gold BarclayCard MasterCard and I phoned them up to cancel it today. It has a zero balance and a £3500 limit.

As I was with them for a number of years, I was offered a 6% APR flat-rate on all purchases until further notice if I was prepared to keep it. The advisor suggested I simply "put the card at the back of my wallet" and keep it just in case.

Obviously, the account is reviewed over time but I was told that it is unlikely that this rate would be increased for the foreseeable future.

This sounds like a good deal to me (a potential £3500 loan at 6% whenever I need it).

Apart from the £3500 being seen as "available credit", is there anything else I should be concerned about?

Thanks

Gaz

Brian8888

I think it's a god option to have. However, be aware that there is a reason why they are doing it. They want you to spend money that you would have not spend otherwise so that they can charge you the 6%. If you are disciplined then you can use it as an option to have if you need the 3500 for something that really makes sense. Lots of people get tricked though by the idea of easily available money and spend more than they should.

ic

Ideal if you were planning to get a loan in the near future to pay for something large, but also consider if you'd be able to actually pay with it, or whether you'd incur charges. I suspect most tradesmen will want cash or cheque, whilst a car garage will normally hit you for a 2.5%+ surcharge.

If you have a good credit record, you should have no trouble getting a 0% purchase card later for said big purchases.

fozmcfc

It's not a bad deal as such and worth keeping open, particularly if you have an average or worse credit rating, or you have a lot of other credit available to you, whether you are using it or not. Both of these, could restrict you getting other better options.

However if you have a decent credit rating, than better options are available.

For the past 4 years or so, I haven't paid any interest on credit cards, as I've been getting 0% purchase cards, which allow you to have xx amount of months at 0%.

These type of cards http://www.moneysavingexpert.com/credit-cards/best-0-credit-cards

Some come with rewards as well, such as money off vouchers on the M&S card or clubcard points on the Tesco card.

You could also get a super balance transfer card, which allows you to transfer money from a credit card into a bank account, normally with a fee of 4% or 5%. Then you get xx amount of months to pay it back at 0%. So in effect a loan which is paid back over xx amount of months, with total cost 4% or 5%.

garynuman

Hmm.

Received confirmation letter yesterday. BarclayCard are pleased to offer my "6% discount" on my APR!

Shocking! I have them on record stating that this was a new 6% APR rate NOT just a 6% discount!

Think I'll be cancelling!

Thank you all