| New credit card undergoes assessment by Barclaycard |
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In an attempt to reward and encourage people who make prompt repayments, Barclaycard is evaluating a new card that will allow customers to enjoy low interest rates if they make their credit card balance repayments quickly.
Barclaycard’s new offering, called the Repayment Rewards, is designed to charge a low interest rate for those customers who remit their credit balances quickly every month.
Kevin Coulter, UK Consumer Cards and Loans’ managing director commented, “Credit - used sensibly - can help us manage our finances and live the way we want to. Repayment Rewards is about finding new ways to help customers while encouraging a responsible approach to their borrowing.”
Schemes by Barclaycard benefit customers with large balances on their credit cards as they have a provision of moving their balances into a loan service wherein they are charged reasonable interest rates with particular repayment conditions.
However, Moneyfacts, the comparison website believed that the card was “gimmicky and complicated”, saying that a 0 % deal would benefit customers more. He said, “With the lowest APR set at 9.9%... consumers would be better off opting for the Halifax One card which offers 0% APR for balance transfers for 12 months and 12.9% APR thereafter.”
Meanwhile, Barclaycard’s Ian Barber promoted the firm as a ‘responsible’ lender and was quoted at BBC Radio 4's Money Box programme as, “We carry warnings on all our statements that if you only make the minimum payment each month, that debt is going to stay around for much longer.” He asserted that Barclay had elucidated very well the pros and cons of a large and small payment respectively, and that the final choice lay with the customer.
Besides, Barclaycard has another new plan in the offing for next March intended to assist customers in organizing repayments.
Posted
on : Mon, 26 Sep 2005 13:10 GMT | Credit Cards News
By : Anne Philips
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