Credit card terms changing - closing accounts

Kauto5

Hi all, 

I have both an Aqua and Marbles card, both are provided by New Day. They're both very high interest (49.9%) and I struggle to make anything more than minimum payments most months. 

They're changing the terms and conditions slightly and I have until 30 June 2024 to decide if I want to close the accounts. They've said that if I choose to close them, obviously I won't be able to use them anymore and will still have to make at least the minimum payments each month. 

It states that the interest charged on the amount owed will be Bank of England base rate - this is where I'm confused.

Will this mean that if I choose the accounts I'll no longer be charged 49.9% interest on the balance? Seems to good to be true and I'm sure I'm misunderstanding... Will there be a negative mark on my credit report if I chose to do this?

Thank you for any advice or clarification!

TadleyBaggie

Kauto5 said:

Will this mean that if I choose the accounts I'll no longer be charged 49.9% interest on the balance? 

I assume you mean "close"? You will still have to pay interest until the balances are cleared.

Martico

Kauto5 said:

It states that the interest charged on the amount owed will be Bank of England base rate - this is where I'm confused.

That strikes me as unusual. Normally CC companies say that the account will be frozen for new spends and you'll be expected to pay it off at the existing interest rate

eskbanker

Martico said:

Kauto5 said:

It states that the interest charged on the amount owed will be Bank of England base rate - this is where I'm confused.

That strikes me as unusual. Normally CC companies say that the account will be frozen for new spends and you'll be expected to pay it off at the existing interest rate

Perhaps it actually says that the current rate will continue to be charged and will remain fixed except for adjustments aligned with any future changes to BoE base rate?

cymruchris

We'd likely need to see the exact wording to be sure of what it means. Are you able to blank out your personal details and post a photo of the letter?

retiredbanker1

Like a lot of credit cards these days the interest rates are linked to Base rates - BUT it will be BoE base rate PLUS XYZ% not just base rate.