Warning: credit card companies reducing interest free period

Lorian

From the news, 3 credit card companies are reducing their interest free period!

Natwest, RBS and Mint.

it said DD customers will get their statements 10 days later than at the moment, meaning they will only have 15 days to pay the bill.

Nicholas

Nationwide did this a couple of years ago (56 days down to 46 days), but it seemed to slip under the radar. The crafty beggers offer a credit card that is brilliant for use abroad, ie no 2.75% commission loading, and then want their money back (in some cases) before you even return from a 2 week holiday! "Proud to be different" and "Yet another benefit of belonging to a building society" spring to mind.

Question: if I wish to use the card abroad and avoid this early payment problem without going the DD route, could I partially "load up" the credit card in anticipation of what is going to catch on the bill eg. first 5 days spend of the holiday? Or would they let me change my statement date without charge? (I really don't want to go DD as I only use the card when I go abroad ie once or twice a year)

Lavendyr

Most credit card T&Cs say you cannot put your account in credit with them, so you'd need to check your T&Cs. The exception is Egg Money, which allows you to have a positive balance (and pays you 4% gross interest when you do).

anna42hmr

sorry if this sounds stupid, as i only caught the end of the bbc one news discussion on this, and it seemed to imply that i could end up being charged interest even if i pay in full each month??

could this be the case (i currently have both a mint and natwest card and pay full balence off each month via direct debit)

Nicholas

anna42hmr wrote: »

sorry if this sounds stupid, as i only caught the end of the bbc one news discussion on this, and it seemed to imply that i could end up being charged interest even if i pay in full each month??

could this be the case (i currently have both a mint and natwest card and pay full balence off each month via direct debit)

No. It just means you have to pay earlier. For example, my Nationwide card used to be 56 days free credit, statements around 13th of the month, to be paid by the latest 8th of the following month. I could wait for my pay at the end of the month to go in, and then pay the bill. Now that they have reduced to 46 days free credit. Statements are still around 13th of the month, but I have until the 28th of the previous month to pay ie 10 days less. That means I have to pay out of this months pay, rather than waiting until next months pay to go into the bank, so I cannot sit on the money for another month in the building society getting interest.

YorkshireBoy

Nicholas wrote: »

my Nationwide card used to be 56 days free credit,

The current Nationwide products are advertised with 56 days interest free on purchases.

Have they reduced all customers' interest free periods after their introductory periods end, or been selective?

Have you asked them why they've reduced yours when they advertise 56 days on their website/in branch?

Nicholas

YorkshireBoy wrote: »

The current Nationwide products are advertised with 56 days interest free on purchases.

Have they reduced all customers' interest free periods after their introductory periods end, or been selective?

Have you asked them why they've reduced yours when they advertise 56 days on their website/in branch?

No. I haven't (as I have not needed to use the card for the last 18 months), but based on what you have told me, I will.:o

ManAtHome

anna42hmr wrote: »

sorry if this sounds stupid, as i only caught the end of the bbc one news discussion on this, and it seemed to imply that i could end up being charged interest even if i pay in full each month??

That was about a 'points club' which replaced Air Miles during the summer - was initially free, but now they're charging £3 a month (think it was a Nat West card).

Nicholas

YorkshireBoy wrote: »

The current Nationwide products are advertised with 56 days interest free on purchases.

Have they reduced all customers' interest free periods after their introductory periods end, or been selective?

Have you asked them why they've reduced yours when they advertise 56 days on their website/in branch?

I've looked online. It is an old Gold cash reward card that is no longer available. And it is only 46 days (ie 15 days from date bill is received rather than 25 days).

I also notice that they no longer give cash rewards for purchases abroad, which is the only thing I would use it for (and it is now a crappy 0.25% anyway). Methinks it is time to ask Nationwide if I can change it to a standard Gold Card. Still worth having one for using abroad to save 2.75%.

YorkshireBoy

Nicholas wrote: »

Methinks it is time to ask Nationwide if I can change it to a standard Gold Card. Still worth having one for using abroad to save 2.75%.

I agree, but you may not be given an introductory rate if you got one with your current card...

You can apply to change your Nationwide credit card at any time but any introductory rate or offer is not available if you have previously held a Nationwide credit card with an introductory rate or offer.

http://www.nationwide.co.uk/creditcard/GoldCard/default.htm

Nicholas

YorkshireBoy wrote: »

I agree, but you may not be given an introductory rate if you got one with your current card...

Thanks, but I am not worried about the introductory rate. I just want a card that I can use when I go abroad, have the 2.75% foreign currency fee waived, AND go back to 56 days free credit. In fact, I have already rung them for the necessary form to make the changes.