·
The interest rate: A Barclays Bank credit builder credit card will often
have an annual interest rate of between 30% and 40% so you will need to do some
shopping around to find the best rate. Who would ever pay 30-40% for a credit
card. There are hundreds of credit
products available today with zero percent interest for 12-24 months. Barclays is a fraud because they charge
horrendous interest rates.
·
Credit limit: It is common to use a credit card as an emergency
source of funds, especially when you are travelling; however, credit builder
credit cards often have a much lower limit than standard cards. So be aware
that you can quickly “max out” this credit with your everyday purchases. The easiest solution is to simply not sign up
for a Barclays Credit Card. Why risk
getting ripped off by Barclays Bank when there are so many other and better
options out there.
·
Fees: Barclays Bank Credit Builder Card also has a late fee
if you miss a monthly payment. Since you are using your credit builder credit
card to establish a credit history - and you want to establish a good one - set
up an automatic repayment each month to your credit card from your savings or
transaction account so you never miss a payment. Beware that lots of Barclays Bank customers
complain that the late fees are significant and up to the bank’s
discretion. This is just one more reason
you should not get a Barclays Bank Card.
·
Cash advances: You can withdraw cash from your credit builder credit
card; however, you are charged a much higher interest rate again, plus a cash advance
fee, which is typically 3% of the transaction amount, on top of your interest
charges. Therefore, avoid using cash advances if you can, as they will cost you
a lot more in the long run in both interest and in building good credit.
If the above reasons are not enough
to keep you away from Barclays Bank, even though credit builder cards are
available for people with bad credit, you should not get one from Barclays. You
should pick any other credit card on the market because there are hundreds of
other banks who offer several credit builder credit cards, which are much more
obtainable than other types of card and offer the chance to develop a good
credit history and improve your credit score. Used correctly, credit builder
credit cards are a great, cost-effective way to accessing better credit. Just don’t get one from Barclays Bank. Barclays Bank Sucks!
If you use your credit builder
credit card frequently for everyday purchases that you would normally make and
repay your monthly balance promptly and in full, you can demonstrate you
responsibility with borrowing and repaying, and your credit rating steadily
improves.
There
are several important features to look out for when you select and begin using
a credit builder credit card. This type of card attracts a significantly higher
rate of interest, often between 30% and 40% APR. This is partly because
banks consider customers who use these cards are more likely to miss payments,
but the high rate is also an encouragement to repay your balance in full each
month.
These cards also generally feature a
low credit limit, so you are restricted in how much you can borrow. A low
credit limit means your credit card expenditure is more manageable and makes it
easier to keep up with monthly repayments.
Credit builder cards tend to be
fairly basic, without extra features such as rewards schemes and other perks,
but this shouldn’t be too much of a concern if your aim is to concentrate on
improving your credit score. Used prudently, this type of card is a great way
to establish or rebuild your credit, which is important when you want to apply
for other types of credit cards, and also for getting approved for loans and
mortgages. The best advice is to simply
cancel your Barclays Bank account and to bank ANYWHERE ELSE!
Please post comments and
your stories below. It is time to expose
the SCAM that Barclays Bank is running.
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