Barclaycard will no longer charge interest on new purchases with 0% balance transfer deals
Barclays is waiving interest on new purchases made on balance transfer cards
Barclaycard will no longer charge credit card customers interest on new purchases if they have a 0 per cent balance transfer deal.
With a balance transfer deal you do not have to pay any interest on debt you move over for a set period of time.
But if you use the same credit card to go shopping you will typically pay around 19 to 20 per cent interest on new purchases unless you clear the entire balance — including the transferred debt.
Barclaycard will waive this interest as long as customers clear their purchase balance.
This rule will apply to customers with balance transfer and money transfer deals — where you take money from your credit card and put it into your bank account.
Andrew Hagger of MoneyComms, the personal finance site, warns: ‘Barclaycard is trying to attract new customers.
But it is the only firm to charge this way — the rest of the industry do it the same.’
Editor’s Credit card deals Of the week
Representative example: If you spend £200 at a purchase interest rate of 18.9% p.a. (variable) your representative rate will be 18.9% APR (variable). Credit limits and terms may vary based on your individual circumstances. Balance transfer offers and introductory fees limited to transfer made with 60/90 days of account opening. See product specific T&Cs. * must spend £1k within 3 months