Coming off an arrangement with Barclaycard

minion1968

I wonder if anyone can help ? - in 2010 i went on a payment arrangement to pay off my Barclaycard, I am now repairing my credit rating and have only the Barclaycard showing on arrangement on my credit file, I decided to now take this off of arrangement as not only do I believe my min payments would come down but also it would hopefully help my credit rating - on speaking to Barclaycard they not only tried to advise me not to come off arrangement, but have also told me they could not advise me what interest rate I would go onto until after I came off arrangement and that it would be between 18% and 30% ? I am obviously concerned that if it is 30% my repayments would increase - should i take the chance as he has informed that I would go back on the interest rate I had before going onto arrangement in 2010 on the Barclaycard Platinum card but I do not know what this was - I really want to come off the arrangement but do not want to start paying more than I currently am. when I first went onto the arrangement I owed approx £6500 and this is now down to £4700.00 - if anyone has any advice it would be much appreciated.:(

HappyMJ

No don't take the chance. I would save up as much as possible and repay it in full once you have saved enough. It'll take 6 years for it to clear off your credit report anyway so being charged interest now won't help you. On £4,700 of debt your minimum repayments will be at least 3% or £141 per month. The interest rate shouldn't change that. If you are paying that at the moment then the card will be clear in 3 years. If they charged you interest it will take more than 20 years.

happy_bunny_2

If you stay on an arrangement, that will trash your credit file for a long time. If you had defaulted, the account would have dropped off your file after 6 years paid or not.

So if it takes you 6 years to pay this off, it will stay on your report for 6 more years when paid. Bcard have been known to default after 5 years also, so screwed for 11 years in that case.

APs are supposed to be for 6 months max according to ICO guidelines.

As for the interest, are you paying any now?

They can't put you on more than you were, as you can reject the hike and pay off the balance at the current rate before you went on arrangement. You can complain in writing about this. If you want to know the rate you were on, send then an SAR as that will get copies of your statements that have the rate on.

minion1968

Hi yes i am being charged interest i was originally given a 6.9% interest rate this then increased after 12 months to the current rate i am on of 12.9%.

i really want to get my credit rating to good and this is the only thing i have on arrangement

Thrugelmir

minion1968 wrote: »

i really want to get my credit rating to good and this is the only thing i have on arrangement

Speed up repaying the debt. That's your only option.

happy_bunny_2

I would clarify, in writing, what will be logged on your credit report if you stay on the arrangement until paid versus come off it and pay.