Barclaycard 0% card they are increasing my credit limit

Pat38493

I have a stoozing card on 0% purchase with Barclaycard and they just sent me a letter saying that they are going to increase my credit limit (I did not request this they just said they are going to do it unless I decline).

Can I assume that my 0% deal until August 2025 applies to the entire increased amount (it doesn't say otherwise in the letter they have sent)?

Grumpy_chap

I would assume otherwise.
AIUI, these interest free offers are usually time limited, so "balance transfer £xxx and get 18 months interest free" (or whatever) but that is up to an end date.
The cards seek to make money by you then spending on the card (which is not interest free) and incurring fees on the new spending.

What does the original paperwork say when you started the 0% sum until August next year?

Pat38493

Grumpy_chap said:

I would assume otherwise.
AIUI, these interest free offers are usually time limited, so "balance transfer £xxx and get 18 months interest free" (or whatever) but that is up to an end date.
The cards seek to make money by you then spending on the card (which is not interest free) and incurring fees on the new spending.

What does the original paperwork say when you started the 0% sum until August next year?

The 0% deal was for 0% on all purchases made on the card up until August 2025 (18 months from the starting date).

The 0% at the start was on whatever credit limit they assigned me after the application.  If they unilaterally increase my credit limit and it's still withing the time of the 0% promotional interest rate, surely the same rate applies to the whole credit limit - I would have thought that if they were going to charge me interest on anything above the original credit limit but below the new limit, they would have had to make that clear in the letter?

The statement each month says: "Interest free period - Maximum 56 days from date of new transaction - (including new purchases and

cash withdrawals) if you pay your main balance (excluding any promotional balance

with a 0% interest rate) and any monthly instalment plan payments (if you’ve taken

out any instalment plans) in full and on time each month. Note - Your main balance is

your current statement balance less any instalment plan balance.

• Any instalment plan you take out is interest free until the end of the plan."

I can't find anything in the documents that says that the promotional 0% is only against the credit limit first assigned at the time I took the card out.

molerat

Their hope is that you max the card whilst at 0% and can't pay it all off before the end of the promotion, they are not increasing the limit for your benefit.  With that in mind it is clear you can go to the new limit within the original terms.

BikingBud

Pat38493 said:

Grumpy_chap said:

I would assume otherwise.
AIUI, these interest free offers are usually time limited, so "balance transfer £xxx and get 18 months interest free" (or whatever) but that is up to an end date.
The cards seek to make money by you then spending on the card (which is not interest free) and incurring fees on the new spending.

What does the original paperwork say when you started the 0% sum until August next year?

The 0% deal was for 0% on all purchases made on the card up until August 2025 (18 months from the starting date).

The 0% at the start was on whatever credit limit they assigned me after the application.  If they unilaterally increase my credit limit and it's still withing the time of the 0% promotional interest rate, surely the same rate applies to the whole credit limit - I would have thought that if they were going to charge me interest on anything above the original credit limit but below the new limit, they would have had to make that clear in the letter?

The statement each month says: "Interest free period - Maximum 56 days from date of new transaction - (including new purchases and

cash withdrawals) if you pay your main balance (excluding any promotional balance

with a 0% interest rate) and any monthly instalment plan payments (if you’ve taken

out any instalment plans) in full and on time each month. Note - Your main balance is

your current statement balance less any instalment plan balance.

• Any instalment plan you take out is interest free until the end of the plan."

I can't find anything in the documents that says that the promotional 0% is only against the credit limit first assigned at the time I took the card out.

Only just seen this and I assume you have acted on the above.

I got the same, 0% on purchases, and no interest was charged when they increased and spent tup to the new limit.