Barclaycard

Well we have all been waiting for the credit card companies to make a move over the proverbial interest rate cut line.
Barclaycard are probably the first to confirm that they will be cutting their interest rates. Before we get too excited this will however only apply to a quarter of its customers which are classed as “low risk”. The rates cuts will be in the region of 2.5% to 5%.

It seems like the card provider is trying to engage their customers more through the current economic climate by establishing a helpline for customers who may be struggling to pay back the debt on their cards. New customers will also get greatly reduced rates on Barclaycard Platinum and Barclycard OnePulse, which will see the rate of interest charged on these cards reduced to 12.4%.

Moneyfacts the comparison website revealed that 32% of the population will use their credit cards in the first part of the year. In the past a lot of people would spend on their credit cards and use their annual bonus to pay off most if not all of it, however a lot has changed in the last 12 months and with bonus pools dropping to near extinction these credit card debt balances may be around a bit longer. A cut in interest rates is a welcome relief for many, lets just hope all the other credit companies follow suit very quickly.