MSE News: Nationwide revamps credit card fees, but will other providers do the same?

Former_MSE_Helen

Nationwide credit card customers will no longer be charged for going over their limit from today...

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Nationwide revamps credit card fees, but will other providers do the same?




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KDH_2

Elsewhere I read that they are keeping the 0.5% cashback available on their Select card available to FlexAccount holders

ollie31770

Nationwide have said that charging interest in purchases when there is a balance is 'unfair'. Does that mean I can ask them to refund the charges I had because of this clause?

jamesd

I think that the article is understating the advantage. With this approach you can have one card with BT and spending, to reduce the total number of cards and total available credit, without paying interest on the ongoing transactions that you repay each month.

I think that Nationwide may be quite canny here. They may have noticed that their customers know enough not to spend on BT cards and may want to remove the reason not to do that so they can make money from spending as well as the BT.

The claim "Use our balance transfer eligibility checker to see which balance transfer cards you have the best chances of getting without harming your credit score" is not well phrased. I initially read it as saying you can get a card without harming your credit score, rather than what I presume is the intended meaning that you can check eligibility without harming the score.

Caddyman

KDH wrote: »

Elsewhere I read that they are keeping the 0.5% cashback available on their Select card available to FlexAccount holders

Yes, really quite pleased about that myself. I got nearly £100 in reward cash back from Nationwide last year using their Select card and I didn't pay a penny in interest either as I paid my balance every month. I love free money lol! I'm hoping for a repeat this year. I certainly won't be ditching the card.

Pincher

I thought they have to pay off the highest interest portion of the outstanding amount anyway.


It used to be that they pay off the 0% balance first, so you couldn't spend on the card you are using for Balance Transfer. They changed the rules a few years ago, to stop the credit card companies from doing it.


It wasn't a big deal for one year BT deals, but with 3 year deals, the monthly minimum seriously erodes the balance you paid 3% transfer fee for. With the Barclaycard deal, I spend roughly the minimum, then pay it next month, so I can keep the 0% balance as high as possible. They are a bit sneaky, though, as they start charging interest the day after the statement date, so I need to be really on the ball to pay the minimum ASAP.


It does mean that I am not earning cashback on those transactions, so, it takes a little planning. I get 3% cashback for petrol on the Santander 123, so can't use the Barclaycard on that one. I also get 1.25% on the Amex, where they take them, so only the leftover transactions can be used. Some months, it's a struggle to find things I can use the Barclaycard for.


The money is funding a TESCO 3% current account, 6% Regular Saver, and propping up the 3% Santander current account. Having paid 3% for the privilege of using it, I obviously want to keep the money working as long as possible.


With the TESCO 3% account on £3,000, and the Santander 3% on £20,000, you do have to pay tax, so the return is more like 2.4% per year. Over three years, the return is 7.2%. Having paid 3% Transfer Fee, the stoozing profit is about 4%.


On £10,000, that's £400 free money, but not if you have to pay it back early.

MABLE

Too confusing for most people using their card for purchases and balance transfers. Perhaps other providers will follow but best to keep these items separate and use difference cards.

PeacefulWaters

Caddyman wrote: »

Yes, really quite pleased about that myself. I got nearly £100 in reward cash back from Nationwide last year using their Select card and I didn't pay a penny in interest either as I paid my balance every month. I love free money lol! I'm hoping for a repeat this year. I certainly won't be ditching the card.

If you're spending £20k a year take a look at the AMEX range.

olly300

I don't advise anyone to touch a Nationwide Credit Card until they improve both their fraud service and customer service.

They are happy to block people's cards and instead of like other card issuers taking minutes to unblock them once they person verifies it's them so the transaction can be made they take days.

During that time you have to ring them to find out what is happening and when you complain their customer service tells you incorrect information.

In addition it seems that some of their credit card customer service staff are spiteful individuals, and ignorant as one claimed that the Data Protection Act prevented her doing something when it's actually fraud processes.

grumbler

ollie31770 wrote: »

Nationwide have said that charging interest in purchases when there is a balance is 'unfair'.

Stop misquoting them. They said that the new charges were "fairer".

Does that mean I can ask them to refund the charges I had because of this clause?

Good luck with this.

ollie31770

grumbler wrote: »

Stop misquoting them. They said that the new charges were "fairer".

Wow, quite the response!

Unless The Telegraph is misquoting:

'Nationwide also said it will scrap "unfair" fees charged to customers who transfer debt to a credit card in a "balance transfer" while also shopping with the card.'