Lending guide

Instalment Plan

Which offers are right for you?

Your Barclaycard comes with different features which could be useful if you’d like to save money on other borrowing or want a low cost way to pay off a large purchase. Here’s some help to understand the differences between these features and which of them may best suit your needs.

  • Balance transfers – useful when you’ve got money to transfer from another credit or store card

    Benefits

    Useful if you're looking to reduce the amount of interest you’re paying on existing credit or store cards that have higher interest rates

    You’ll have flexibility over your monthly repayments (as long as you make at least the minimum payment every month)


    Things to remember

    Aim to repay within your promotional period, as any outstanding balance at the end will be charged at your standard rate of interest

    You’ll still pay interest on other outstanding balances. If you don’t pay off your whole balance each month, excluding any promotional balances then you'll be charged standard interest on new purchases from the day the transaction appears on your account

    If you miss a monthly payment, you’ll lose your promotional interest rate and the remaining amount will move to your standard balance, where the standard rate of interest will apply. This could also affect your credit rating


  • Money transfers – useful when you need to transfer cash to your bank account and you’re sure you will be able to pay it off within the promotional period

    Benefits

    Could be a cost-effective way to borrow money (if you pay the money back within the promotional period)

    By paying the money into your bank account, you can use it as cash, cheque or to pay a person or organisation using an electronic payment

    Things to remember

    If you choose to use the money you’ve transferred to make a cash, cheque or debit card payment, you won’t be covered by Section 75 and chargeback benefits (your standard credit card purchase protection) if your purchase is damaged, faulty or not delivered

    You’ll still pay interest on other outstanding balances. If you don’t pay off your whole balance each month, excluding any promotional balances then you'll be charged standard interest on new purchases from the day the transaction appears on your account

     If you miss a monthly payment, you’ll lose your promotional interest rate and the remaining amount will move to your standard balance, where the standard rate of interest will apply. This could also affect your credit rating


  • Instalment Plan - useful when you want the reassurance of knowing your purchase will be paid off within a time that suits you

    Benefits

    • A helpful way to repay a large purchase in equal monthly instalments over a fixed term of your choice between six and 24 months
    • Your purchase will be covered by Section 75 and chargeback benefits (your standard credit card purchase protection) if it’s damaged, faulty or not delivered
    • You’ll still continue to benefit from your interest-free period on new purchases if you pay your Plan instalment plus your main balance (statement balance excluding Instalment Plans) in full each month. This amount will be shown on your monthly statement

    Things to remember

    • A Plan will increase your monthly minimum payment, so you need to be sure you can still pay this in full and on time every month. This increase could be significant if you choose a shorter term or if the purchase amount is high
    • If you miss two monthly payments in a row your Plan will be cancelled and any remaining balance will be moved to your standard balance where you will be charged interest at your standard rate. This could also affect your credit rating
    • Your monthly repayment will pay off your Instalment Plan first, so it may take longer to repay any other balances, which are charged at a higher interest rate