Halifax Clarity Credit Card APR now linked to base rate.

andyfromotley

Letter from Halifax today, they are now linking my apr to the base rate, So for me its 17.45 + the base rate. If the rate goes up so does my APR. Is this a new development?

I dont mind this as a) i dont carry a balance on it. and b) it quite literally brings clarity to it. We all know that rates go up and down with the base rate, just not usually as explicitly as this.

The potential downside i see for borrowers who carry a balance is that if they wish to raise my rate now then i have the option of declining and paying it off at the current rate. I am assuming that this will no longer be the case?

Any views?

[Deleted User]

They started implementing this around 3 years ago.

You'll be able to decline risk based reprices, but not ones driven by the changes in the base rate.

20aday

I had a similar letter earlier on in the year from Lloyds Bank re. their Choice Rewards Duo account.

I've since closed the account (and destroyed the letter) but am sure it said on there (somewhere) that, if I wasn't happy with the change, to write to them by a certain date to cease the agreement.

YorkshireBoy

20aday wrote: »

I've since closed the account (and destroyed the letter) but am sure it said on there (somewhere) that, if I wasn't happy with the change, to write to them by a certain date to cease the agreement.

That's what my Halifax letter received today said. New format takes effect in February and I have to let them know by week 3 in January if I want to freeze at the old rate (which is the same as the new personal rate + BOE base rate of 0.5%) and close it off to new spending.


Feel sorry for others carrying 'real debt', but it has no impact on me as my 13 month fee-free stooz ends 15th January, whereupon the card will be repaid and closed.

20aday

YorkshireBoy wrote: »

That's what my Halifax letter received today said. New format takes effect in February and I have to let them know by week 3 in January if I want to freeze at the old rate (which is the same as the new personal rate + BOE base rate of 0.5%) and close it off to new spending.


Feel sorry for others carrying 'real debt', but it has no impact on me as my 13 month fee-free stooz ends 15th January, whereupon the card will be repaid and closed.

I feel sorry for people carrying 'real debt' too because as/when the BoE raise interest rates it's going to cause some members of the public financial difficultly.

takman

I've got a rate of 12.45% + the base rate. What kind of rates have other people got?.

alexmi

12.55% on mine.