For the first time ever a credit card company has built an online platform for cardholders to not only manage their money, but collaborate on desired card features and even put them to a vote before implementation.
A number of banks and credit unions have been exploring new “social” approaches of involving customer input for new product lines. And even though the new Barclayscard is still in beta, they have at least temporarily gotten the customer collaboration aspect of it right.
Basically current customers of Barclays got together though an online community and built their ideal credit card – something simple that is also a great deal. When the new card is released, it will feature one of the lowest interest rates on the market at 8% as well as no annul fee OR balance transfer fee. It will also have terms and conditions that are actually straight forward and short.
In our opinion, this card has the potential to make a strong run on the market for consumers with accumulated debt looking to trade in their current card with unfavorable rates for a new one.
The success of this card will lean on two primary features:
1) straight forward APR of 8%. Most balance transfer cards come with a promotional 0% APR period lasting between 6 and 12 months. This period is then generally followed by a standard APR of anywhere between 13-30% depending on credit history. While the barclays card doesn’t come with a tempting 0% APR term, it keeps the APR at less than half of what these cards typically charge for it’s entire life.
2) No balance transfer fee. This is where the upfront savings kick in. Rarely is there a balance transfer credit card on the market featuring a no balance transfer fee, and even when there is its almost always a promotional offer that is only available for a limited time. Having a card that continually waives the balance transfer fee will entice new customers with massive savings. The average balance transfer fee for a credit card ranges between 3% and 5% and must always be paid up front. To get a better idea of the potential savings here let’s assume you are transferring a debt of $5k to a balance transfer card with a balance transfer fee of 5%. This would cost you $250 upfront just to move your balance to the new card.
Barclaycard Ring MasterCard Featured Video:
If you’d like to request an invite to their beta program visit this link.