Barclaycard Considers Charges For Low Usage
There are suggestions that Barclaycard is planning on introducing a low-usage fee for credit card holders who are not using their credit cards as often as Barclaycard feels they should to justify keeping the account open.
No details have emerged as to the specifics, as yet, but this would be a win-win move for Barclaycard if they were to proceed with this plan. It will hit those customers who have taken out low-interest for the life of the balance users. Barclaycard has offered some very good deals for these types of transfers and as the interest rate has risen some of these transfers will now be at interest rates lower than the bank rate.
If this plan by Barclaycard comes off then account holders who do not make additional purchases using the credit card will have an additional fee applied to their accounts. The interest on that fee would almost certainly not be paid off until after the whole low balance transfer amount has been paid off. This scenario would probably also apply to anyone making a purchase to avoid the additional fee.
It is standard practice on balance transfer deals that any payments go towards paying off the balance transfer before any payment is made to clear additional purchases. This is why it is recommended that if you take out a balance transfer deal to a credit card you avoid using that card for any purchases until you have cleared that transfer balance.
Barclaycard seems to be “testing the water†at the moment to see how their customers react to this suggestion but I suspect the temptation will be strong and they will go ahead with this extra charge at some point in the future.
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