The Barclaycard Initial credit card is specifically geared to those with a limited credit history of a poor credit history. Responsible usage of the card can help to establish a good credit reputation for those who qualify. It is unsuitable for those with bad credit as it excludes anyone who has had a CCJ or IVA within the last five years, plus bankrupts. Whilst the card has a high APR, it is lower than some UK credit cards on the market for those with bad credit. Additionally there is a rewards programme and several other benefits to consider.
Anyone with a limited credit history who cannot obtain a favourable interest rate could consider using the Barclaycard Initial card with the view to transitioning to a Barclaycard with a lower APR once their credit reputation is established. Applicants are required to earn in excess of £10,000 per annum and must be on the current electoral roll. The current APR of 29.9% applies to purchases, balance transfers, and cash advances, the latter two each carrying a fee of 2.5% with a minimum payment of £2.50. Overseas transactions are charged at 2.75% and copy statements are £3.
With such a high interest rate card holders would be recommended to use the card solely to establish credit and never to carry a balance or take cash advances. The credit limit may be as low as £250. One feature that may appeal to card holders is the contactless payment option available on purchases of £15 or less, and contactless mobile payments in conjunction with Quick Tap from Orange.
Amongst the benefits the card offers is Barclaycard Unwind Perks. This will appeal to music lovers who like to attend concerts, as it offers a ticket reserve service enabling card holders seven days to purchase a wide range of tickets to big name concerts and exclusive gigs.
All Barclaycard card holders can participate in the Barclaycard Freedom reward programme. This gives the opportunity to earn rewards points at over 30,000 retailers’, equivalent to one point per pound spent. Participating retailers include Barclays, Halfords, Goldsmiths, LA Fitness, and Barclaycard e store. Additional features of the programme are special promotions and offers. Points can be redeemed to spend at selected stores and can be used as part payment towards purchases which are made with a Barclaycard.
The Barclaycard Initial credit card can help to establish or improve credit, but only if used responsibly. Ideal usage would involve never carrying a balance as the APR is prohibitive. Used sensibly though the card can be used as a stepping stone to another Barclaycard with a lower interest rate, but in the meantime cardholders can participate in the Barclaycard Freedom rewards programme.