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Halifax Clarity - interest linked to BoE base rate

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Comments

  • Doshwaster
    Doshwaster Posts: 6,407 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    My interest rate is going up from 12.94% to 12.95%. The letter helpfully tells me that borrowing £1000 will cost me an extra penny a month.

    I can live with that. Even if the rate went up to 15-16% it would still be cheaper than other forms of withdrawing cash abroad.
  • guesswho2000
    guesswho2000 Posts: 1,703 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Uniform Washer
    Your risk profile is priced into your 'personal base rate'. I have a great credit record and yet have a 21.45% base rate.



    Indeed. It's purely so that Halifax can perform a rate hike without seeming too hard on customers. "Your rate rise is the Bank of England's fault, honest!"

    Indeed, I'm in the same boat here. Interestingly, one of the FAQs mentions limiting cash withdrawals to reduce your perceived risk - one of the main benefits of the card (and its only use to me!).
  • DUTR
    DUTR Posts: 12,958 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    I will have to re-check my letter but I'm sure it says the interest rate is 12.95% for cash or purchases, I clear the balance on reciept of the statement anyhoo.
  • King_Of_Fools
    King_Of_Fools Posts: 1,612 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    DUTR wrote: »
    I will have to re-check my letter but I'm sure it says the interest rate is 12.95% for cash or purchases, I clear the balance on reciept of the statement anyhoo.
    Yes but if you pay your bill in full every month you will never pay any interest on purchases. If you withdraw cash you pay interest from the day it is withdrawn whether you pay the bill in full or not.
  • chanz4
    chanz4 Posts: 11,057 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Xmas Saver!
    12.95 for me too, so not really bad
    Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.
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