Take a look at these key points about Instalment Plans, how repayments work and whether they’re right for you.
Creating a Plan
You can only create an Instalment Plan if you have an offer available – log into your Barclaycard online servicing account to view your offers.
- The minimum amount you can move to an Instalment Plan is £495. The maximum amount depends on your offer. You can check to see if you have an offer by logging into Barclaycard online servicing
- You can have up to 10 plans at any one time.
- All offers are available for a limited period only.
- You can move an eligible purchase to an Instalment Plan only after the purchase has been added to your account and before the offer end date.
- Before you can create an Instalment Plan you must:
- Have at least 15% of your credit limit available
- Your standard balance must be equal to or exceed the purchase amount; and
- Have not missed any payments within the last 12 months
We reserve the right to withdraw the offer of an Instalment Plan.
Once your plan has been set up
- Once you’ve created a Plan, the purchase amount will be moved from your standard balance to your Plan balance.
- A fee will apply and will be added to your Plan balance. The fee charged will depend on the purchase amount and the number of months (term) you choose to replay your Plan over. The longer the term, the lower the monthly instalment, and the higher the fee.
- Remember that with an Instalment Plan your minimum monthly credit card payments will increase, as they’ll include your Plan payments, so please make sure you can afford these each month.
- To keep your Instalment Plan, you need to keep your account in order. This means you need to stay within your credit limit and make your payments on time. If you don’t stay within your credit limit, miss two consecutive payments, or if you pay less than your minimum payment each month, we’ll cancel your Instalment Plan.
- If your situation changes during your Instalment Plan and the repayments are no longer affordable, you can cancel at any time by contacting our customer services team. Read about call charge information here. This will reduce your monthly credit card payments.
- If your Plan ends early, we’ll refund part of the Instalment Plan fee you paid when you created your Plan. The refund will be based on the number of full monthly instalments you’ll no longer need to make.
Instalment Plan payments
- The Plan will be split over the length of the term you have chosen in order to calculate your monthly Plan payments.
- If you miss a payment or pay less than the minimum payment due (which includes your Instalment Plan and non-Plan minimum monthly payment) we reserve the right to charge a late payment fee, this will also affect your credit rating.
- When you make a payment we’ll use it to pay off your balance in this order:
- Your monthly Instalment Plan payment;
- Your main balance – starting with the transactions you’re paying the highest interest rates on (e.g. cash withdrawals, card transactions and balance transfers);
- Any remaining balance from your Instalment Plan. This means that your Instalment Plan balance may be repaid quicker than your non-Plan balances which are charged at a higher rate of interest. If you withdraw cash, the amount of interest you pay on your cash balance may increase, as your repayments will be allocated to your Instalment Plan payment before your other balances.
Repaying or ending a Plan
- If you make an overpayment on your Instalment Plan (a payment that is more than your main balance plus your Plan instalment due for that month) it will be used to reduce your future Plan payments. This could mean that your Plan will end early. Your main balance is your statement balance less your Plan balance.
- If you make an overpayment that pays off at least one additional Plan payment, you’ll reduce the number of instalments remaining on your Plan. This means that the end date of your Plan will be brought forward and the end date will be adjusted based on the number of additional instalments you paid off. An overpayment could also result in a leftover amount being owed which is not equal to a monthly instalment amount. In this case, your final payment amount will be updated to reflect this final amount.
- We will cancel your Plan if you fail to make two consecutive minimum payments on time, or if you make an arrangement to pay less than your minimum payment each month.
- We can cancel your Plan if you breach your credit card terms and conditions
- You can cancel your Plan by contacting our customer services team. Read about call charge information here.
- If your Plan is cancelled, we’ll move any remaining balance to your standard balance and charge interest at your standard rate. Remember - your simple standard rate moves up and down in line with the Bank of England Base Rate.