Avoid Financial Advice from Barclaycard
Posted August 14th, 2009 If you’ve ever had the fortune to have Barclaycard offer you a ‘helping hand’, beware. Barclaycard has launched a financial advice line, targeted at customers who are reaching their credit limit, or who are not clearing their debts each month.
Customers will be sent a text or telephoned by the firm and invited to discuss their situation.
Barclaycard said it will offer free debt advice and the option to reduce minimum payments.
However, financial journalist Tricia Phillips, of Your Money Questions Answered, thinks it’s a scam, designed to increase the profitability of Barclaycard: “The only winners from the scheme will be Barclaycard, as this is simply a way of reducing their exposure to bad debts.”
She also pointed out that reducing minimum payments will simply increase the time it takes for customers to clear their balance – increasing the overall interest paid and driving up Barclaycard’s profits.
To top this off, they’re also increasing the interest rates for customers who they perceive as at risk.
“In the second half of the year, there will be a limited number of price rises where we have a clear indication that potential risks have increased,” said Antony Jenkins, chief executive.
Nice one Jenkins.
Barclaycard offers are not particularly compelling, and if you’re unlucky enough to have dealt with the ‘customer service’ that they provide, you’ll no doubt be filled with murderous rage. If this sounds like you, it’s probably time to think about a credit card balance transfer. The Virgin Money Credit Card and the Halifax All in One Credit Card are the best deals on the market right now.
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Comparison of Top 10 Credit Card Offers
| Credit Card | Card Details | Interest Rate | Cash Advance Rate | Balance Transfer Rate | Annual fee | Interest free days | ||
|---|---|---|---|---|---|---|---|---|
 Halifax All in One Credit Card |
The Halifax All in One credit card offers a great introductory rate, and is perfect for saving you money now as well as in the future. | 15.9% APR | 27.95% p.a. (variable) | 0% for 9 months | No Annual Fee | 59 Days interest free |
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 Virgin Credit Card |
As well as a great rate, the Virgin Credit Card comes with:
|
16.6% APR (variable) | 27.9% p.a. (variable) | 0% for 16 Months (2.98% fee on balance transfers) | No Annual Fee | 50 days on card purchases |
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 Capital One Classic Visa |
This card is designed for people with bad credit ratings, this is why the rate is quite high. |
Typical 34.9% APR variable | 34.9% APR | 34.9% APR | No Annual Fee | 56 days for purchases. 0 days for balance transfers and cash. |
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As well as earning Flying Club miles which you can spend on brilliant rewards like flights, upgrades, car hire and more, a Virgin Atlantic Credit Card gives you up to 46 days interest free on card purchases. |
17.9% APR typical rate | 20.9% p.a. (variable) | 0% for 6 months (2% handling fee) | No Annual Fee | Up to 46 days on card purchases only. |
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The Virgin Prepaid MasterCard from Virgin Money is a prepaid Mastercard that you can add funds to, and use these funds for normal purchases. |
N/A | N/A | N/A | N/A | N/A |
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5% cashback on purchases in your first three months (up to £4,000 of spend). Thereafter, earn 0.5% on the first £3,500, 1% on £3,501 to £10,000, and 1.5% after £10,001. |
18.9% p.a. | 27.9% p.a. | 18.9% p.a | No Annual Fee | 56 days for purchases. 0 days for balance transfers and cash. |
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Vanquis Visa Card is designed for people with no credit history or who have previously had bad debt. Representative 39.9% APR (variable) |
Representative 39.9% APR (variable) | 39.9% | N/A | No Annual Fee | Up to 56 days on card purchases only |
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The award winning prepaid card with no credit check or bank account needed. | Funds in your Account will not earn interest | Prepaid only - N/A | Prepaid only - N/A | £59.40 p.a. (£4.95/month) | Prepaid only - N/A |
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