Credit Card Comparison HomeCredit Card ReviewsBarclaycard Initial Credit Card

Barclaycard credit card review: Initial

THERE are now a number of credit cards on the market specifically designed to help you repair your credit history if you've had problems in the past or establishing a credit history if you're new to credit.

Most of these bad credit rating credit cards are 'cut down' versions of standard credit cards, often offered by smaller credit card operators (think: Vanquis) or by a specific division of a larger operator and with less cardholder services and extras.

That's a description that certainly doesn't apply to Barclaycard, one of the biggest names in UK credit cards, or the Barclaycard Initial, which comes with all the usual cardholder services.

In fact, the Barclaycard Initial credit card comes with as many services and extras as their prestige card the Barclaycard Platinum credit card.

Those include Barclaycard Freedom, a reward scheme that can be earned on purchases at and be redeemed in 30,000 retailers, Visa Onetouch, the contactless payment system and Thomas Cook discounts.

The Barclaycard Initial also comes with purchase delivery protection, fraud protection (including an Identity protection service) and free travel insurance.

In all, the Barclaycard Initial credit card is definitely a good solid card to have if you're new to credit or looking to rebuild your credit history after problems in the past, with the added bonus of being able to enjoy some extra 'Barclaycard' luxuries.

Interest Rates and Fees
		Notes..
Typical APR	29.9% APR (variable)	The typical APR is the rate most people are offered.
Balance Transfers	29.9% p.a.
Balance Transfer Fee	2.5%
Cash Withdrawal Rate	29.9% p.a. (variable)
Cash Withdrawal Fee	2.5% (£2.5 minimum)
Annual Fee	None	-
Foreign Transaction Fee	2.75%	This fee will be charged if you make a purchase or cash withdrawal in a foreign currency.

Rewards
		Notes..
Reward #1	Barclaycard Freedom	Earn up to 1% in Reward Money on all your purchases with participating retailers. Reward Money can be redeemed towards future purchases at the checkout of any participating retailer. Barclaycard Freedom participating retailers include: - Shell: 0.5% (Earn only, no redemption) - Goldsmiths - Blue Inc - Yo! Sushi - Pizza Express - Firebox.com - npower - LA fitness - Nationwide Autocentre - gourmet burger kitchen - Just Tyres - Officers Club - Barclays - Flight Centre - Watches & Switzerland - F.HINDS - Mappin & Webb - petroleum - BSM - Bales Brothers - Lewis & Clarke - Give by George Davis - JustGiving
Reward #2	Thomas Cook Discounts	Book your holiday through the Barclaycard Travel Service and get a discount of 7% or more with Thomas Cook and over 150 tour operators. Thomas Cook will also waive their standard 2.25% credit card booking fee for Barclaycard cardholders.
Reward #3	Barclaycard Unwind	Exclusive access to entertainment tickets, must-see gigs and one-off live sessions with Barclaycard Unwind.

Cardholder Services & Extras
Online Account Management		You can log in to the Barclaycard web site and manage your Barclaycard Initial credit card account online. An optional free text alert service offers a text message to your mobile 5 days before your Barclaycard payment is due.
Fraud Guarantee		You won't be held liable for fraudulent use of your Barclaycard as long as you notify Barclaycard as soon as you become aware of it or notice anything suspicious on your account.
Fraud Monitoring		Barclaycard will look out for any unusual activity on your account and contact you to make sure it's not fraudulent.
Identity Protection		Identity Protection Service Barclaycard provide a confidential helpline if you think you may be a victim of Identity theft or if you just want advice on how to avoid it happening.
Verified by Visa		An extra layer of security when shopping online. Register and set up a password-protected identity-check when you shop online with participating online retailers.
Purchase Protection Insurance
Purchase Delivery Insurance		Covers brand new goods bought with your Barclaycard Initial credit card if they don't arrive or are delivered damage and you are unable to resolve the issue with the supplier. Covers goods bought online, over the telephone and in the high street if goods are delivered.
Comprehensive Travel Insurance		Free single trip travel insurance When you book your holiday (between 2 and 21 days long) through the Barclaycard Travel Service. Up to 5 friends and family members travelling with you will be covered. Exclusions and terms and conditions apply.
Travel Accident Insurance
Travel Inconvenience Insurance
Assistance Abroad		Worldwide Assistance Free help if anything goes wrong while you're abroad. Barclaycard can help you in the case that anything goes wrong whilst you are abroad. They can provide legal assistance, medical emergency help, arrange flights and transport to get you home as quickly as possible, interpretation, send a message home, and help with lost or stolen documents.
Emergency Card Replacement		Barclaycard will get you an emergency card replacement if yours is lost or stolen anywhere in the world. Barclaycard can also arrange an emergency cash advance of up to £1,000 a week (subject to available funds on your account), and they'll even refund the cash handling fee.
OneTouch Payment System		Visa payWave A contactless payment technology that allows you to pay for purchases costing £10 or under with just a 'touch' of the credit card at participating retailers (mainly around London travel services).
Other Extras	- 10% off Barclays Annual Travel Insurance - 24 hour Customer Services.
Optional Extras	These are extras that you can choose, but you will have to pay for them. - Card Protection - Payment Protection - Everyday Cover - Identity Theft Protection.

Payments & Payment Details
		Notes..
Credit Limit	£250 minimum	Maximum credit limit is subject to status.
Interest Free Period	Up to 56 days	For purchases if you pay your statement balance in full and on time each month. There is no interest free period on balance transfers, cash withdrawals or credit card cheques outside of any promotional offer.
Minimum Monthly Payment	2.5% (£5 minimum)	The minimum monthly payment will be the greater of: - 2.5% of your outstanding balance, OR - £5.
Allocation of Payments	Default Charges » Promotional Balance Transfers » Promotional Purchases » Purchases, Balance Transfers & Other Charges » Cash Withdrawals
Default Charges	£12	This is how much you will be charged for late payments, returned payments and if you go over your credit limit.
Copy of Statement Fee	£3	This is the fee you will be charged for duplicate statements.

Card Details
		Notes..
Online Application	Yes: Instant Decision	Get a decision in minutes when you apply online.
Card Type	Classic
Payment Company	Visa	The company who provides the payment technology and infrastructure to allow you to use this credit card. Retailers and ATM machines displaying the 'Visa' logo will accept this credit card.
Card Issuer	Barclaycard	The bank who issues this credit card. Barclays Bank 1 Churchill Place London E14 5HP
Card Advertiser	Barclaycard	The company who advertises and promotes this credit card.

Review Continued...

The Barclaycard Initial credit card helps you to rebuild and strengthen your credit history.

If you have had problems with credit in the past, or if you have no credit history - for example you've only just turned eighteen or not long arrived back in the UK - then Barclaycard could give you a leg-up into the world of credit that would have otherwise be denied to you.

By sticking to your monthly repayments and respecting your credit limit you'll be able to give lenders the opportunity to see that you can be trusted with credit. Once you have built up a couple of years history, then you will have established a good record on your credit file for other lenders to see.

The Barclaycard Initial credit card is issued by one of the biggest names in UK credit.

Just like any other credit card you can use it for online shopping, doing the weekly supermarket sweep, buying petrol etc and there are a wealth of extra services.

Paying it back in full

However, there is a drawback.

In common with all other bad credit rating credit cards, the Barclaycard Initial credit card charges a high rate of interest, typically 29.9% APR which is more than double the best rate on a standard credit card. The high APR of this credit card reflects the target market - if you're seen as a risk by credit card issuers, then they will charge a premium for offering you credit.

However, there's a decent interest free period of 56 days, giving you time to clear your monthly spending in full, and there's no annual fee. So, if you always repay your balance in full each month and stick to the terms of your credit agreement, then you won't pay any interest or charges.

You'll get a sensible credit limit dependant on your circumstances but it will be at least £250.

Barclaycard freedom

Unusually for a bad credit rating credit card you can also earn rewards with the Barclaycard Initial credit card.

Barclaycard Freedom is a scheme which 30,000 UK businesses have signed up to: you use your Barclaycard to pay, get 1% of your purchase back and spend it at any other participating retailer.

We're fans because it's an automatic redemption - so there's a minimum of fuss - and there are some great participating brands including Npower, Shell, Yo!Sushi and hundreds of independent retailers.

There are also introductory offers. For example, there's currently 25% off LA fitness membership.

Barclaycard services

Because it's backed by Barclaycard, you get invaluable services like emergency card replacement and emergency cash advance anywhere in the world. You also get access to the Barclaycard Travel Service and Barclaycard Identity Protection on top.

Purchases will also be protected over and above the standard 'Section 75' of the Consumer Credit Act, with purchase delivery insurance - covering brand new goods bought with this Barclaycard if they don't arrive or are damaged upon delivery.

Who can apply?

Don't apply for Barclaycard Initial credit card if you have been declared bankrupt or have any CCJ's or IVA's registered against you in the last 5 years - if you have you should probably start with the Capital One Classic which will accept previous bankruptcy, CCJ's or IVA's which happened more than 12 months ago.

To be considered for a Barclaycard Initial you will need to be aged 18 or over and earning at least £10,000 per annum. They also request you're on the electoral roll at your current address - which is worth doing for improving your credit rating either way.

Summary

The Barclaycard Initial credit card is a good credit card to help you build a solid credit history, and you get the peace of mind of the backing of one of the most experienced credit card operators.

As long as you keep your spending repaid in full each month - there really is little between this and a Barclaycard Platinum.

Apply Online for Barclaycard Initial credit card »