Barclaycard Life of the Balance
Barclay is one of the largest companies in the UK offering credit cards. The Barclaycard Life of the Balance is a different spin on credit cards that you may have seen in the past. We will review the benefits of this card to help you decide if this is a card for you.
The purchase annual percentage rate is going to be 14.9 percent. This rate is variable, which means it can change over time. Barclay also reserves the right to decide what annual percentage rate you are going to be awarded. There are several factors including your risk and income that will decide if the standard rate is going to be available to you. You will not know that rate until the card application has been approved. Barclay does have one of the lowest APR’s at the moment though.
There is an introductory offer for balance transfers. For balance transfers you can get a 6.3 percent annual percentage rate for the life of the balance. There is also a waiver on their standard 2.5 percent fee. To get the 6.3 percent annual percentage rate for balance transfers you must complete the transfers within 60 days of opening the account. You also need to transfer an amount of 5,000 pounds. Anything less than this amount and you will have a 14.9 percent interest rate on the balance transfers.
Barclay also has a statement in terms and conditions that states, “even if the balance is paid in full the interest charge for the period from the previous statement to the full repayment date will be debited the following month.” In other words if you don’t pay off the balance in full each month before the due date in which the interest is charged, you will be liable for the interest.
Barclay offers an interest free period for a maximum of 56 days when you pay in full and on time each month for the first six months. There is no interest free period on this particular card for balance transfers, cash withdrawals, or cash advances.
Barclay also has an interesting allocation of payments. The promotional transfers and fees will be paid first. Promotional purchases will be paid next then interest, fees, and charges. Standard rate purchases and balance transfers are paid next, and last to be paid are the cash balances. This means that the lower interest accruing balance will be paid off first with the largest interest accruing balance paid off last. Cash withdrawals are 27.9 percent APR.
With the restrictions on the card and the specifications for the life of the balance deal, this card is really great if you are using the card for a balance transfer. This card can be very costly if you decide to use it for purchases and especially cash withdrawals. It is also the only card of its kind on the market at the moment to help you out if you are struggling with high interest rates on balances, so it is worthwhile to look at.
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