Barclays credit card charges changing from Feb'16

Milegna

Hi All

I just got an e-mail from Barclays advisinf me that from Feb'16 their credit card APR's will be adjusted to Base Rate of Bank of England, which effectively means increase in payments around £20-30/ month. They were very ineffective as to actually explaining the reason behind this (they are one of the few doing so as far as I know), using not a very elaborate tautology. Does anyone have an experience of dealing with it? They are effectively changing term and conditions and it has nothing to do with my missed payment (never) or anything wrong on my side. And I am quite annoyed by this:mad:

Nebulous2

It allows them to change the interest rate as base rates rise without so many hoops to jump through. Several other cards seem to be going the same way, it is an indicator that companies expect base rates to rise.

If your rates have gone up without a base rate rise, then that means they have recalculated the risks they think they are taking in lending you money.

Some other people have posted to say their rate has come down. My rate for cash advances has come down on both cards, but the purchase rate has stayed the same.

Milegna

Hi Nebulus, thanks for your reply.
I find it strange though, because as I said their adjustment has nothing to do-or should have- with my repayment conduct, it's been good, no missed payments and I actually requested a lower credit limit than the one offered by them. I just thought it's some kind of a new money making strategy using Bank of England's justification. From what I read Halifax is one of the others doing the same. As I mentioned, it is a different iddue than rate change due to payment issues.:(

Nebulous2

Lowering your credit limit might actually have a negative effect, as one figure they look at is the percentage of available credit that you use. People on here often recommend that you don't use more than 60% of your available credit.

It is hard to tell, and you may never find out for sure, but somewhere, somehow they have decided they were not charging you an appropriate level for the risk you present.

There is an option to refuse the change, as detailed in the email. It does mean that you wont be able to use your card, but it will let you pay off your debt at the old rate.