Barclaycard doubles 0% period on Initial credit card
Leading credit builder card gets a boost.
Barclaycard has doubled the 0% purchase period on its Initial Credit Card.
Previously the credit builder card offered three months of interest-free spending, but that’s now been bumped up to six months.
The Initial offers a credit limit of between £150 and £1,200 and has an APR of 34.9%.
But if you make your repayments on time and in full each month, Barclaycard will review your account after a year and your credit limit might be increased and/or your interest rate reduced.
Credit builder cards
Credit builder cards are designed to help you gradually build up or repair a damaged credit rating.
These cards tend to offer a low credit limit along with high interest charges, which are meant to encourage you to use them sensibly.
They’re also typically ‘no-frills’.
So the Barclaycard Initial deal is unusual for offering a 0% period on purchases.
Other credit builder cards
If you’re on the hunt for a credit builder card there are plenty of other options out there.
The Lloyds Bank Classic Credit Card offers three months of 0% interest on purchases and six months of 0% interest on balance transfers with a 3% fee. It offers a credit limit of at least £500 and has an APR of 25.9%.
The aqua Classic Credit Card offers a credit limit of between £250 and £1,200, with the chance of a possible increase after four months. The card attracts a relatively low 29.7% APR, though not everyone will get this rate. It also offers unlimited access to your credit report, worth up to £50 a year.
Or there’s the aqua Advance Credit Card, which also offers a credit limit of between £250 and £1,200, with the chance to up this after four months. The card also offers no fees when you use it to pay for things abroad. It comes with an APR of 34.9%, but if you manage it properly you can cut this down to 19.9%. With this card you’ll also get unlimited access to your credit report.
If you’re looking for a slightly bigger allowance the Capital One Classic Extra Credit Card offers a credit limit of between £200 and £1,500. It also pays 0.5% unlimited cashback on everything you buy and pays a £10 bonus each year when you pay your monthly bill on time. The card comes with an APR of 34.9%.
Read The best credit builder credit cards for more.
Tips on using a credit builder card
Whatever credit card you go for, you should aim to pay your balance off in full each month, otherwise you’ll be charged a hefty rate of interest.
At the very least make sure you make the minimum repayment or you’ll have to pay a fee and you’ll get a black mark on your credit record.
You should check your credit report periodically to see if your credit rating has improved. Once it has, you should be able to apply successfully for the more competitive cards out there. You can get a free 30-day trial of your Experian credit report. You can also compare credit report providers at our credit report comparison centre.
Other ways to improve your credit rating
There are plenty of other things you can do to improve your credit rating aside from taking out a credit builder card and using it responsibly.
Some are extremely simple, like ensuring you’re on the electoral roll and closing unwanted accounts. Check out Ten simple steps to improve your credit record for more.
More on credit cards:
The best cashback credit cards
The best 0% purchase credit cards
The best credit cards to use abroad
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