Instalment Plan

Instalment Plan

Instalment Plan. Pay off big ticket items in equal monthly chunks

Instalment Plan, a nifty new way to use your Barclaycard credit limit

There’s a new way to pay off pricier items like a new sofa or the latest gadget. If you’ve bought something between £495 and £5,000 you can move it to an Instalment Plan and split the payments into handy equal chunks.

A handy new way to pay

You can split the cost of things you’ve recently bought into equal chunks from 6 to 24 months. And as you choose the end date of your Plan, you’ll know exactly when it’ll be paid off.

A simple one-off fee

For a one-off fee, you’ll get 0% interest until the end of your Plan. Bear in mind that shorter Plans will have a lower fee, but higher monthly payments. And if you’ve got enough credit available, you can have up to 10 Plans on your account.

Got something in mind?

Before you measure up for the three-piece, login to your online servicing account, go to the offers section and click on Instalment Plan to check if you’ve got an offer. Once you’re logged in, use our Plan calculator to pick the payments and end date that work best for you.

It’s OK to change your mind

Setting up a Plan is a doddle – there are no credit checks or annoying forms. And if for any reason, you want to cancel a Plan, you can call us and we’ll sort it out. Any remaining balance will simply be moved back to your standard balance and we’ll refund part of your one-off fee.

Here’s what a £1,000 Plan could look like

Check out an example of three ways a £1,000 Plan could play out. But, remember you decide the length of your Instalment Plan, from 6 to 24 months.

6 Month Plan

2% fee, 0% interest on a £1,000 purchase

  • 6 payments of £170
  • Each total amount repaid is £1,020 which includes a £20 fee
  • Cost similar to a 7.04% APR loan of the same amount over the same duration

 

12 Month Plan

4% fee, 0% interest on a £1,000 purchase

  • 12 payments of £86.66 each
  • Total amount repaid is £1,040 which includes a £40 fee
  • Cost similar to a 7.55% APR loan of the same amount over the same duration

24 Month Plan

8% fee, 0% interest on a £1,000 purchase

  • 24 payments of £45 each
  • Total amount repaid is £1,080 which includes a £80 fee
  • Cost similar to a 7.76% APR loan of the same amount over the same duration

The ins and outs

There’s some important info you need to know before setting up your Instalment Plan – like how your minimum payments are affected and what happens if you miss a payment. Read all the details here.

Instalment Plan FAQs

Is an Instalment Plan 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, and you’ll pay interest on everything you buy with your Barclaycard from the date the transaction appears on your account until your whole balance – including the transfer – is repaid in full

    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, and you’ll pay interest on everything you buy with your Barclaycard from the date the transaction appears on your account until your whole balance – including the transfer – is repaid in full

     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

At a glance

  • Move a big ticket item between £495 and £5,000
  • Use the Plan calculator to choose your preferred monthly payments and end of Plan date, from 6 to 24 months
  • A one-off fee of between 2% and 8% will be added to your Plan to get 0% interest
  • The shorter the Plan, the lower the fee, but higher your monthly payment
    Log in to or register for online servicing to see if you’ve got an Instalment Plan offer on your account and to use the calculator. We’ll also let you know if any of the things you’ve previously bought can be moved to a plan.