Barclaycard is cutting credit card limits – what is the best balance transfer credit card? | Personal Finance | Finance
Barclaycard clients have reported reductions to the credit card limits they’re provided. The transfer has sparked outraged clients to hit out at Barclaycard on-line.
“I closed the account and took out another card elsewhere instead.”
Customers have mentioned Barclaycard has by no means checked on their monetary standing, however slashed limits to unstably low ranges, This is Money experiences.
Barclaycard has mentioned the resolution was attributable to “the ongoing economic impact of coronavirus” on the UK.
Barclaycard has not commented on the variety of clients impacted.
A Barclaycard spokesperson mentioned: “As with many other lenders, our credit risk models take into account changes in the UK economy, as these may impact our customers’ ability to manage their borrowing effectively.
“Over the previous 12 months, we’ve needed to bear in mind the ongoing financial affect of coronavirus, and this has resulted in a rise in the variety of clients receiving credit restrict decreases.
“Having up-to-date credit danger fashions is a part of our dedication to being a accountable lender, to assist make sure that clients will not be borrowing greater than they will comfortably afford.
“For some customers, where we don’t believe that their current limit is affordable, we provide information on how to appeal the limit change by verifying their income.
“When we reduce a customer’s credit limit, we will not reduce it to below their current balance, and we will ensure that they at least have sufficient headroom on their account to continue essential spending.”
For these holding on prime of their funds, it might be they’re asking what the best credit card for on a regular basis use is proper now.
On the subject of the best credit card for on a regular basis use, cash comparability web site Moneyfacts.co.uk mentioned: “This will depend on your individual requirements, though arguably, a card that offers cashback or rewards will be best for everyday spending.”
Each week, Moneyfacts highlights the best of the newest merchandise or charge adjustments on the shopper finance market through its Pick of the Week.
While it is probably not proper for everybody, these on the lookout for a balance transfer credit card could also be to know the one Moneyfacts showcased most lately was Virgin Money’s 29-month Balance Transfer Credit Card Mastercard.
It provides an introductory charge for balance transfers of zero % for 29 months.
The introductory charge for purchases is zero % for 3 months.
Commenting on the deal, Rachel Springall, Finance Expert at Moneyfacts.co.uk, mentioned: “In its latest update, Virgin Money has improved the introductory interest-free balance term on its Balance Transfer Credit Card Mastercard by one month, to 29 months but also seen an increase to the transfer fee.
“The card now has one of the longest terms available to customers searching for a zero percent balance transfer credit card.
“One element to note is its introductory balance transfer fee, which is now 3.00 percent within the first 60 days of account opening, up from 2.70 percent, outside of this offer the fee rises to 5.00 percent so borrowers would be wise to compare and plan carefully before they apply and make subsequent transfers.
“The card earns an Outstanding Moneyfacts product rating in the process.”