New Barclaycard Features Flexible Interest Rates
New credit card tested by Barclaycard which rewards those who pay off balances quickly
22nd September 2005
Barclaycard has been testing a credit card which varies the interest rate charged according to how much of yourbalance you repay in any given month.
The new Repayment Rewards Card has an interest rate varying between 16.9% for those who only make the minimum 2.5% repayment, and 9.9% for those who repay more than 10% of their balances. The rates will have a 2 month 'lag', reflecting how much you repayed on your last-but-one statement.
For comparison, the standard rate of Barclaycard's main credit card offering, the Platinum, has a standard rate of 15.9%.
This system will obviously appeal to those who regularly pay off large proportions of their balance, although customers who tend to stick to minimum repayment levels will probably be better off looking elsewhere for a lower rate card.
No firm date for launch has been set, although Barclay's say they intend to make the card widely available by the end of the year.
Update: this card is now available as the Flexi-Rate from Barclaycard
Read More: Money Guardian : Barclays to launch flexible interest card
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