Barclaycard Flexi-Rate Credit Card

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Barclay card Flexi-Rate Credit Card has broken new grounds with its innovative scheme of flexible interest rate. While the other credit cards are busy lowering the minimum payment rates, Barclaycard Flexi-Rate has come up with a variable interest scheme which encourages customers to increase their credit card payments. This way both borrower and lender share the responsibility of debt clearance.

Features:
As the name suggests, Barclaycard Flexi-Rate offers flexible interest rates for customers who maintain a regular credit payments. The current APR (purchases) is 14.9%, typical.  For customers who pay more than 10% of their monthly payments the interest rate will be reduced to 9.9% and those who pay more than 5% are charged with 12.9%. In this way Barclaycard Flexi-Rate, offers a reduction of interest rate for customers who are making an effort to repay their debts faster. However the reverse is also true. Customers who pay less than 5 % are charged with an interest rate of 16.9%. Standard APR for cash advances is 27.90%.

Barclaycard Flexi-Rate has opened up an effective way of saving money. For example, if a customer borrows a thousand pounds at a standard interest rate of 15.9% and pays only the required minimum rate per month then it will take him approximately 21 years and 3 months to pay off the debt with an interest of £1,400. Through Flexi-Rate, a 10% payment would take only 4 years and 6 months to pay off the debt with interest £110, saving £1,290.

Customers can also take advantage of the introductory balance transfer rate that allows customers to transfer balance, up to £5000, from another credit card at a 0% interest rate for 12 months. The offer lasts till the first of July, 2008. For balance transfer the customers will have to pay a 2.9% of handling fee.

The other features include:

• An introductory offer of 0% interest on purchases for 3 months
• A Visa card with chip and pin security features.
• 56 days of interest free purchasing period.
• Zero annual fee.

Barclaycard Flexi-Rate includes all the card protection, purchase and fraud   protection offered by the Barclaycard credit card company.

Eligibility Criteria:
Barclaycard Flexi-Rate is offered to customers who are 21or more and have a permanent UK address, at least for three months. They must also have good credit history and must not have a record of missing multiple credit balance payment in the last 12 months. Customers who already have a Barclaycard are not eligible for the Flexi-Rate credit card. Students or people with annual income less than £10,000 cannot apply for Barclaycard Flexi-Rate credit cards.