lloyds credit card

voucher1

just received new terms and conditions. gone are the days of risked base pricing they are now linking the interest rate to the base rate. so if the base rate increases the rate will go up. eg personal rate 18.69%pa bank of England rate 0.25% standard rate 18.94%. if the rate goes down so does my rate. I presume by0.25%.so with base rates likely to increase not a good card to have

TheShape

They can still change your personal rate though.

If you pay in full each month you won't pay any interest no matter what the rate.

eddddy

voucher1 wrote: »

just received new terms and conditions. gone are the days of risked base pricing they are now linking the interest rate to the base rate. so if the base rate increases the rate will go up. eg personal rate 18.69%pa bank of England rate 0.25% standard rate 18.94%. if the rate goes down so does my rate. I presume by0.25%.so with base rates likely to increase not a good card to have

This is very much risk based pricing - the personal rate of 18.69% is the risk based part.

Lloyds bank confirm this:

11. How can I avoid increases to my personal interest rate?

• Keeping to the conditions of your credit card or any other product you have with us (‘us’ includes Lloyds Bank and other brands within Lloyds Banking Group). For example, don’t miss payments, go over your credit limit, or make payments that bounce.

• Keep an eye on your financial status. If we receive information about you from external credit reference agencies we may change your rate. Your credit rating may be impacted by regularly using the entire credit limit or exceeding the credit limit on your credit card, not making payments on time on any credit cards, mortgages, loans or current accounts or regularly using a credit card to make cash transactions.

We may increase your rate for other reasons - so even if you stick to the terms of your agreement and keep an eye on your financial status, this does not guarantee that your rate will remain the same.

Link: https://www.lloydsbank.com/credit-cards/existing-customer/base-rate.asp

Anthorn

Brought into line with mortgages.

Some pundits are forecasting a further reduction in the BoE base rate so it will be interesting to see if Lloyds APR will in that case be reduced. Or will they follow the example of energy companies and come up with reasons that they cannot reduce it.
http://www.thisismoney.co.uk/money/mortgageshome/article-3774209/Another-rate-cut-Bank-England-looks-likely-wait-remortgage-now.html

For the time being my overall APR is exactly the same as it was before. We'll see what happens in due course.

PeacefulWaters

They've always been able to change your interest rate. It's a variable rate credit agreement.

This allows them to pass on a rise in base rate without giving you two months written notice. That's the only reason they've done it.

Yawn

Halifax (same company, of course) did the same link to the base rate with my Clarity Card some four-five years ago, I think. Little did they know that the interest rate would be going down, rather than up...