Barclaycard have lowered my APR

avfc82

Hi,

I phoned up Barclays yesterday as my minimum payment to the Credit card jumped up from £199 to £219, so I asked why this was as I hadn't used the card for about 8 months. They said t was based on average day rate or something like that, they then said they had a promotion where they can drop it from 29.9% to 9.9% for the next two years.

Any reason why they have done this? Are they worried I might not pay it back? I've never missed a payment but I owe £8950 on the card, there will be a point I will pay more than the minimum payment but I want to clear other debt first which will be by the end of this year and then I will then concentrate on the barclaycard.

Would this effect my credit rating as well for them to drop it down to 9.9% apr?

Thanks

[Deleted User]

As long as its not marked an arrangement to pay, you'll be fine.

Barclaycard are giving money away like lollipops at the moment.

avfc82

I wonder if they will transfer my other debt I have and they can just have one payment just to them?

MABLE

avfc82 wrote: »

Hi,

I phoned up Barclays yesterday as my minimum payment to the Credit card jumped up from £199 to £219, so I asked why this was as I hadn't used the card for about 8 months. They said t was based on average day rate or something like that, they then said they had a promotion where they can drop it from 29.9% to 9.9% for the next two years.

Any reason why they have done this? Are they worried I might not pay it back? I've never missed a payment but I owe £8950 on the card, there will be a point I will pay more than the minimum payment but I want to clear other debt first which will be by the end of this year and then I will then concentrate on the barclaycard.

Would this effect my credit rating as well for them to drop it down to 9.9% apr?

Thanks

Why not try and get a loan. There a few who offer 3.8%.

Aquamania

avfc82 wrote: »

Hi,

I phoned up Barclays yesterday as my minimum payment to the Credit card jumped up from £199 to £219, so I asked why this was as I hadn't used the card for about 8 months. They said t was based on average day rate or something like that, they then said they had a promotion where they can drop it from 29.9% to 9.9% for the next two years.

Any reason why they have done this? Are they worried I might not pay it back? I've never missed a payment but I owe £8950 on the card, there will be a point I will pay more than the minimum payment but I want to clear other debt first which will be by the end of this year and then I will then concentrate on the barclaycard.

Would this effect my credit rating as well for them to drop it down to 9.9% apr?

Thanks

The minimum repayment is the higher of:

• 2.0% of the amount you owe.
• £5.00 (or outstanding balance if less than £5.00)
• Interest added (plus any fees) plus 0.1% of the balnce owed.

There were 31 days in October compared to 30 days in September

So with a balance of £8950 and an interest rate of 29.9%, I would say your minimum payment this month should be:

£8950 x 29.9% x (31/365) + (0.1% x £8950) = £236.23

Btw, my interest rate charged by Barclaycard is currently 11.4% for purchases; it's only 26.8% for cash.
That's without any special offers. They keep inviting my to take out a short term 0% deal on purchases, balance transfers and even money transfers

Rates and specials offers obviously vary by customer.

avfc82

I wouldn't be able to get a loan as i have a poor credit history, thats why i was bit surprised by Barclays dropping the APR? I've never missed a payment on any of payments when i have taken loans/credit but I owe alot out which I am determined to clear down.

Aquamania

avfc82 wrote: »

I wouldn't be able to get a loan as i have a poor credit history, thats why i was bit surprised by Barclays dropping the APR? I've never missed a payment on any of payments when i have taken loans/credit but I owe alot out which I am determined to clear down.

If you've never missed a payment on any loan/credit then I'm not sure why you think you have bad credit :huh:

If you can afford a loan at a high APR, then you can afford to repay the same loan over the same period with a lower APR.
(Maybe the new lender will insist they repay the existing credit card account themselves and make you agree to the closure of the credit card account at that time)

stator

Only making minimum payments doesn't look good on your credit record. Try to pay a little bit more

avfc82

Aquamania wrote: »

If you've never missed a payment on any loan/credit then I'm not sure why you think you have bad credit :huh:

If you can afford a loan at a high APR, then you can afford to repay the same loan over the same period with a lower APR.
(Maybe the new lender will insist they repay the existing credit card account themselves and make you agree to the closure of the credit card account at that time)

Its because I am only paying the minimum amount and have three credit cards amount to £23k, that is why my credit rating is low, thast why I was surprised they lowered the APR as usually they would have to do a credit check etc..

Game_Over

avfc82 wrote: »

Its because I am only paying the minimum amount and have three credit cards amount to £23k, that is why my credit rating is low, thast why I was surprised they lowered the APR as usually they would have to do a credit check etc..

It's possibly the 4 banks you incurred default charges with
https://forums.moneysavingexpert.com/discussion/4901892

and in particular the PDL you talked about today
https://forums.moneysavingexpert.com/discussion/5111743

that's probably done your credit in, rather than paying credit accounts monthly on time, albeit just the minimum amount.

:cool:

avfc82

Game_Over wrote: »

It's possibly the 4 banks you incurred default charges with

and in particular the PDL you talked about today

that's probably done your credit in, rather than paying credit accounts monthly on time, albeit just the minimum amount.

:cool:

I've never missed a payment, but it is likely due to PayDay loans and multiple credit cards. I've been stupid and need to tackle the problem fast. Just hate being like this!