Some Barclaycard customers could face rising bills after the credit card provider decided to move Platinum customers to variable rates from September 1st.
Barclaycard announced that the credit cards issued to around 1.7% of its 10 million customer base would no longer track the Bank of England base rate at the end of the summer.
This will allow the provider to review and change its rates for individual customers with much greater ease.
Barclaycard described the change as “beneficial to customers” in the context of a climate where average credit card rates have soared despite a rigid Bank of England base rate.
“Their new rates are set at the current rate, which is at its historic low,” a spokesman said.
The provider may also set a period during which existing Platinum customers are excluded from rate reviews based upon risk.
Barclaycard is keen to avoid being seen as cashing in on its recently announced adjustment, which followed an announcement from the Bank of England that interest rates were unlikely to rise in the foreseeable future.
Its 27 month 0% balance transfer card is an ideal choice for customers looking to consolidate and reduce their credit card debts affordably, though only those with excellent credit ratings are likely to be eligible for the full term.
James Booker
Which4U
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