21 September 2005
Barclaycard is to offer a new type of credit card that provides a financial incentive for paying the bill on time.
To be called the 'Repayment Rewards' card, Barclaycard's new offer will lower the interest rate for those who pay off more of their balance each month.
For example, if customers pay over ten per cent of their balance they will be charged an interest rate of 9.9%.
Those people that only pay the minimum 2.5 per cent will be charged 16.9 per cent.
Keith Coulter, managing director of UK consumer cards and loans said: "Credit, used sensibly, can help us manage our finances and live the way we want to.
"Repayment Rewards is about finding new ways to help customers while encouraging a responsible approach to their borrowing."
A trial will take place in the next few months, but it has already proven successful in America, where it is already available from US card issuers.
Use uSwitch.com's impartial calculator to compare all credit cards and find the card to suit your needs.