Barclaycard Initial: the 0% credit card that improves your credit rating

The Barclaycard Initial credit card not only helps you build a decent credit rating, it also now offers a period of interest-free spending!

Interest-free credit cards are very desirable, and with good reason. They give the chance to pay off your debt in manageable chunks, free from the added expense of paying interest.

Of course, if you don’t have a great credit rating, or no credit history at all, these cards are generally out of reach. Cards with 0% deals are reserved for the most attractive borrowers, not those who lenders have a few doubts about.

Or at least that was the case, before the revamp of the Barclaycard Initial credit card.

The Barclaycard Initial

As the name suggests, the Barclaycard Initial is designed for borrowers who have no credit history and want to build a decent credit rating. It offers a single rate for purchases or cash advances (29.9% APR), and gives borrowers a low credit limit which can then be reviewed and increased depending on the borrower’s needs.

Obviously, an interest rate of nearly 30% is pretty steep, but that’s the price you pay if you don’t have a gleaming credit record.

However, what has made this card far more enticing is that it now offers three months of 0% interest on purchases, something no other credit-building card offers.

The pros and cons of a 0% period

Offering an interest-free period on spending is clearly a big plus for many borrowers as they will be able to take their time to pay off their spending.

However, while it is an opportunity, it can also lead to a few issues. After all, three months isn’t that long a 0% period. Don’t let it dupe you into spending more than you can easily pay off by the end of the interest-free offer.

And if you don’t manage to clear the debt by the end of those three months, you’ll be stuck paying 30% interest on the remainder, which can become extremely punishing, really quickly.

How it compares

Let’s take a look at how the Barclaycard Initial compares to other credit builder cards:

Building a better credit record

A credit builder card like the Barclaycard Initial is only a single step towards improving your credit rating. There are plenty of other things you should do, as we explain in How to build an excellent credit history.

More on credit ratings:

What REALLY damages your credit rating

Eliminate this new threat to your credit record

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