Halifax Mastercard - A New Way To Calculate Interest Rate

wiseonesomeofthetime

Cannot trace this news on the forum, however, apologies if there is already a thread.

Letter received from Halifax stating:

We're changing the way we work out the interest rate on your Halifax Mastercard credit card. From 20th January 2017 your Standard Interest Rate will be linked to the Bank of England Base Rate.

Your interest rate is not changing but the way it's calculated is. This means that your new Standard Interest Rate of 25.95% p.a. variable will be made up of your Personal Interest Rate and the Bank of England Base Rate and will change if either of these rates do.

For example,

> Personal Interest Rate 25.70% p.a. variable

+

> Bank of England Base Rate 0.25% p.a. variable as of 1st October 2016

=

> Standard Interest Rate 25.95% p.a. variable



Halifax do give you the option of closing your account and paying off the outstanding balance if you don't want to accept the change.

I settle mine in full each month so it does not affect me, however, may affect others that do not settle each month in the future.

molerat

A few other cards did this some time ago. Bank rate can't go down much more so little chance of them losing but every chance of them winning in the future.