Instalment Plan

Instalment plan

Instalment Plan can help spread the cost of a shiny new piece of kit into equal monthly chunks

 

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If you’re thinking of making a big buy this month, see how an Instalment Plan can help. It’s an easy way to spread the cost into equal monthly chunks (fee applies).

Just choose your equal monthly payment amount, when you want your 0% interest Instalment Plan to end, and agree the fee (between 2% and 8%).

Then you can stay ahead of the game – knowing exactly when your new bit of kit will be paid off.

  • Check before you go shopping

    You need to make sure you’ve got at least 15% of your credit limit still available after buying your item.

    So before you buy, log in to Barclaycard online servicing to check you have enough credit and review the offer details.

  • Fee info

    Each Plan has a fee of between 2% and 8% that’s added in equal monthly chunks for the length of your Plan. It’s based on the cost of your purchase and how long you want the Plan to run for.

    So bear in mind that shorter Plans have a lower fee, but will mean higher monthly payments.

    Log in to Barclaycard online servicing for your offer details.

  • Your minimum payments will go up

    When you add a Plan, your minimum monthly payment will naturally increase as it’ll remain part of your credit limit.

    Remember, if you don’t make at least your minimum payments, you’ll need to pay a late payment fee and your credit rating may be affected.

    If you miss or underpay two Plan payments in a row, we’ll have to cancel your Plan and move whatever you’ve got left to pay back to your standard Barclaycard balance. And this means you’ll then pay a higher interest rate.

    If you’re ever having problems with your payments, get in touch on 0800 151 0900 or 0333 200 9090. Lines are open 8am-9pm Monday to Friday, 8am – 6.30pm Saturday and 8am - 4pm Sunday.

  • Your Plan payments come first

    They're built into your regular Barclaycard payments, so there's no separate amount to pay each month.

    It’s important to understand how your Plan works alongside your other Barclaycard balances. When you make a payment, we’ll use it to pay off your balance in this order;

    1) Your Plan payment for that month.
    2) Any balances you’ve got on your Barclaycard (starting with the ones with the highest interest).
    3) Any remaining Plan balance.

    So when you make a monthly payment, it’ll go towards paying off your Plan first and not balances with higher interest rates. This means you’ll end up paying more interest on those balances unless you pay them off in full by the payment due date.

  • You can cancel for any reason

    You can cancel your Plan for any reason by getting in touch on 0800 151 0900 or 0333 200 9090.* Lines are open 8am 9pm Monday to Friday, 8am 6.30pm Saturday and 8am 4pm Sunday.

    If you cancel your Plan, any remaining Plan balance will be moved to your standard balance and charged interest at your standard rate.

    If your Plan ends early, we’ll refund a proportion 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
  • Equivalent to 7.04% APR on a loan

 

12 Month Plan

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

  • 12 payments of £86.67 each
  • Total amount repaid is £1,040 which includes a £40 fee
  • Equivalent to 7.55% APR on a loan

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
  • Equivalent to 7.76% APR on a loan

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. 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

    Find out more
  • 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

    Find out more
  • 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

    Log in to online servicing

Heres how it works

Instalment Plan infographic

Use your Barclaycard to buy an item from £495 to £5,000

Instalment Plan infographic

Log in to online banking and under 'Transfers and Offers' click 'Instalment Plan'

Instalment Plan infographic

Choose your monthly payments, end date (from 6 to 24 months) and one-off fee

Instalment Plan infographic

Get 0% interest until the end of your plan