Jump to content
House Price Crash Forum
Sign in to follow this  
interestrateripoff

Barclaycard - Borrowers Given 0Pc Interest For Nearly Three Years

Recommended Posts

http://www.telegraph.co.uk/finance/personalfinance/borrowing/creditcards/10829659/Borrowers-given-0pc-interest-for-nearly-three-years.html

Credit card giant Barclaycard has increased the length of time borrowers can pay 0pc interest on a credit card to nearly three years.

Its balance transfer card offers 32 months interest-free borrowing, up from its previous 31 month offer.

There is a one-off 2.99pc balance transfer fee. The card also offers 0pc interest on purchases for six months, and has a representative APR of 18.9pc.

Any clever person work out what the APR is for paying it off over 32 months when you factor in the 2.99% fee. This seems a great offer for anyone with credit card debt that needs to be transfered.

It seems that then entire economy is becoming more and more zombiefied!

I wonder who'll have the first 5 year offer?

Share this post


Link to post
Share on other sites

I wonder who'll have the first 5 year offer?

I'm wondering who will be the first with the 25 year 0% deal. I'll buy a house with the card when that offer comes out.

Share this post


Link to post
Share on other sites

My OH recently phoned Barclaycard to cancel a card she hadn't used for years. They actually offered her £150 cash paid into her account there and then if she would agree to keep it open!

Share this post


Link to post
Share on other sites

why would they offer such a product, I can understand 6 months 0%, but 3 years, how do they expect to make money

Credit card companies earn 3% on everything you buy. So if you can persuade someone to swap to your card you can make money on everything they spend. Losing a bit of interest on the transfered balance is neither here nor there.

Share this post


Link to post
Share on other sites

why would they offer such a product, I can understand 6 months 0%, but 3 years, how do they expect to make money

I'll be first to post a cynical reply. These deals are fantastic for disciplined borrowers - however they can be something of a trap for the feckless. The interest free period is only valid if you continue to make the minimum payment (effectively 100% capital repayment, after sunk upfront charge). Guess what - the first time you breach the rules the interest free period vanishes and interest starts being charged immediately at 18.9%. So you could argue the lender is hooking in a few suckers with this deal.

A less cynical answer is they are just competing agressively for new customers, some of which will hopefully retain and use the card for a long time. Also anyone who balance transfers might be inclined to make further non-balance transfer purchases down the line which are subject to the usual interest charges.

Share this post


Link to post
Share on other sites

My OH recently phoned Barclaycard to cancel a card she hadn't used for years. They actually offered her £150 cash paid into her account there and then if she would agree to keep it open!

Supports the aggressive competition for new customers theory.

Share this post


Link to post
Share on other sites

I recently took out a new (2nd) Barclaycard with 25months interest free on BTs and 1.79% transfer fee, transferred the balance from my 15months interest free on purchases Tescos card. I don't need to use the cards and have the cash to pay them off tomorrow, but it does give a certain flexibility if you can use offers. The credit limit on the Barclay card was twice that of the Tescos card and 11x that of the low limit card Halifax card I have. I did try to apply for a Halifax offer along side my existing card and current account, but they were not interested.

My existing 1% cashback Barclaycard Mastercard (Egg originally) is being replaced by a 1% CB American Express and 0.5% CB VISA which I'm not that pleased about.

Share this post


Link to post
Share on other sites

why would they offer such a product, I can understand 6 months 0%, but 3 years, how do they expect to make money

I suspect these people are classed as assets on their books. They're probably the only thing holding Barclays together.

Last thing they want is for them to default otherwise the whole party gets crashed.

Edited by Eddie_George

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   224 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.