14.9 to 22.9% interest???

kelly_emmerson_2

Hi

Three years ago I opened a Barclays Platinum Credit Card.

I was a little bit green in regards to how credit cards actually work, to cut a long story short I want to ask the board how on earth Barclay's can slowly but surely raise the interest rate from 14.9% to 22.9%!!

This is outrageous to say the least, I always pay a lot more than my minimum payment every month and regularly spend on my card so they are definitely making money from me!

I've read on various sites to complain and say I'm basically going to transfer the balance to another credit card, I did that and their response wasn’t positive. They said they cannot lower the rate as it is 'set out' by the bank of England? My mother has the same card and her rate is 19.9%?

I need help!!! please!

piker1957

Hi Kelly, the rate is not set by the BoE, it's set by Barclaycard, but what they're implying is that interest rates have been raised by the BoE and as a resuklt they've put up the interest rate. Please read Martin's article on credit cards, if you've made minimum payments on time then you should be able to find another credit card at a much lower rate of interest that would let you balance transfer (even with a fee) it'll be much cheaper than a card with a 22% annual interst rate. Then when you are ready apply look at Quidco before you do because you might be able to get a cashback (if you've checked out the card provider's site, clear your cookies before going via quidco, otherwise your cashback wont track).
BW Piker

kelly_emmerson_2

Thanks for your post Piker.

The only problem is they have raised my credit limit to £5500 which is very beneficial to me at the moment, surely these companies would rather lower the interest rate a few percent than lose the customer to another credit card? I was wondering if there was a template letter on this site that I can send to Barclaycard detailing my circumstances and dissatisfaction with there approach to lowering my interest rate.

tom188

Is there any reason why you dont just move elsewhere? Surely a 0% deal would better than almost any interest rate cut.

krisskross

Raising interest rates is just one of the methods the banks will use to fund the reclaiming of bank charges. I bet they end up making even more profit.

Jess1983

Hi Kelly,

most companies decide on the interest rate for particular accounts using something called a behavioural score.
Your BH score reflects how you manage our account. It goes up if you pay every month in full, preferably with a DD, are a regular card user and don't really do too much out of the ordinary.
However, things that make it go down include taking out cash with your card, using your card to buy foreign currency, make irregular payments ( ie, payments made on different days, different amounts every month etc), not using a direct debit facility, splurging on the card...

It'l always important to remember, that when dealing with credit card companies you are dealing with gigantic companies with very little room for allowances, such as reducing interest rates on existing accounts.

It seems the best way to go is to transfer the balance to another credit card AND DO NOT SPEND ON IT WHATEVER YOU DO.
That way you can keep the Barclaycard one. Spend not too much on it, pay in full every month and by direct debit. Eventually your BH score should go ( as would your credit limit) up and your interest rate down. This could of course take quite a few years to achieve.


J