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A number of high street credit card lenders have reduced interest-free terms, withdrawn products and increased minimum monthly repayment fees within the last week.
Sainsbury’s Bank’s Dual Offer Credit Card Mastercard previously offered a chart-topping 0% interest term of 27 months, has now reduced its interest-free term to 26 months. Sainsbury’s Bank has also reduced the interest-free term on its Balance Transfer Credit Card Mastercard from 29 months to 28 months, while also increasing the balance transfer fee to 3.00% from 2.74%.
Meanwhile, Tesco Bank reduced the interest-free term on balance transfers on its Clubcard Credit Card for 28 Months Balance Transfer Mastercard from 28 months to 26 months and renamed the card to reflect the new interest-free term, while also removing the 0% purchase term on the card, which was previously three months, and reducing the 0% money transfer term to 12 months from 28 months. Tesco Bank has also temporarily withdrawn its 12 Month All Round Clubcard Credit Card Mastercard, 15 Month All Round Clubcard Credit Card Mastercard and its Clubcard Credit Card with Low APR Mastercard.
In addition to this, in the last week Halifax, Lloyds Bank, MBNA Limited and Bank of Scotland have all increased their minimum monthly repayments. Halifax, Lloyds Bank and Bank of Scotland have increased the minimum monthly repayments on all their credit cards from 1.00% or £5.00 to 2.50% or £5.00. MBNA Limited has increased the monthly repayments from 1.00% or £25 to 2.50% or £25.
Consumers looking for a loan will find that Bank of Scotland, Halifax and Lloyds Bank have all reduced their unsecured personal loan limits from a maximum of £50,000 to £35,000. In addition to this, on Tuesday this week Admiral temporarily withdrew its unsecured personal loan from the market.
While these credit card and loan changes will unlikely impact existing customers, it comes at a time when many consumers are struggling financially due to the Coronavirus pandemic and banks are being encouraged to do more to help those facing financial difficulties due to the pandemic. Today, for example, the Financial Conduct Authority (FCA) announced proposals that would in part see banks offer a temporary payment freeze on loans and credit cards to those in financial difficulty due to the pandemic for up to three months.
Commenting on the credit card and loan changes, Eleanor Williams, finance expert at Moneyfacts.co.uk, said: “One benefit to consumers regarding an increase to the minimum credit card repayment would be that those who habitually just pay their minimum payment would likely reduce the time it takes them to repay their total debt.
“However, those who may be experiencing any concerns around disruption to their income and their ability to meet payments would do well to get in touch with their provider early to discuss what options may be available to assist them. Citizens Advice Bureau and the Money Advisory Service could be useful resources for those who require support.”
Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. Moneyfacts.co.uk will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.
Just over one in five Brits are planning on taking a holiday during the upcoming Queen’s Jubilee weekend, according to Barclaycard’s latest Consumer Spending Index. Of this number, 84% of respondents are planning a trip abroad. “While concerns around rising household bills may continue to hamper spending on non-essential items, the upcoming Platinum Jubilee Weekend and summer months should provide opportunities for Brits to spend on celebrations and make the most of warmer weather,” said José Carvalho, Head of Consumer Products at Barclaycard.
Just over one in five Brits are planning on taking a holiday during the upcoming Queen’s Jubilee weekend, according to Barclaycard’s latest report.
From 1 June, Buy Now Pay Later (BNPL) provider Klarna will start sharing its customers payments made on time, late payments, and unpaid purchases with credit reference agencies. This means that if a consumer falls behind on any repayments, their credit score will worsen. Equally, if a consumer repays their debts on time their credit rating will improve.
The UK’s biggest Buy Now Pay Later provider will share its customer debt and payments with Experian and TransUnion from 1 June.
There are 20.2 million UK adults who may have difficulty accessing credit from mainstream lenders according to fintech company TotallyMoney and accounting firm PWC. This is likely due to minor adverse credit history, volatile incomes which can impact affordability assessments, or minimal credit history. People who fall into this category are often referred to as “under-served.”
There are 20.2 million UK adults who may have difficulty accessing credit from mainstream lenders.
Just over one in five Brits are planning on taking a holiday during the upcoming Queen’s Jubilee weekend, according to Barclaycard’s latest Consumer Spending Index. Of this number, 84% of respondents are planning a trip abroad. “While concerns around rising household bills may continue to hamper spending on non-essential items, the upcoming Platinum Jubilee Weekend and summer months should provide opportunities for Brits to spend on celebrations and make the most of warmer weather,” said José Carvalho, Head of Consumer Products at Barclaycard.
Just over one in five Brits are planning on taking a holiday during the upcoming Queen’s Jubilee weekend, according to Barclaycard’s latest report.
From 1 June, Buy Now Pay Later (BNPL) provider Klarna will start sharing its customers payments made on time, late payments, and unpaid purchases with credit reference agencies. This means that if a consumer falls behind on any repayments, their credit score will worsen. Equally, if a consumer repays their debts on time their credit rating will improve.
The UK’s biggest Buy Now Pay Later provider will share its customer debt and payments with Experian and TransUnion from 1 June.
There are 20.2 million UK adults who may have difficulty accessing credit from mainstream lenders according to fintech company TotallyMoney and accounting firm PWC. This is likely due to minor adverse credit history, volatile incomes which can impact affordability assessments, or minimal credit history. People who fall into this category are often referred to as “under-served.”
There are 20.2 million UK adults who may have difficulty accessing credit from mainstream lenders.
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