The effective annual interest rate on your card is variable and linked to the Bank of England's Base Rate. If the Base Rate changes we will update our systems within 7 working days and your effective annual interest rate will move by the same amount, usually on the date of your next monthly statement. However, your interest rate will not track any movements in the Base Rate below 1% (for example, if the Base Rate is ever below 1% we will treat it as if it is 1% when we work out your effective annual interest rate).
Credit Profile Assessments
In addition to Base Rate movements, your card’s interest rate may be affected by how you manage credit. Factors considered include:
Missed or failed payments on your account.
Whether you’ve exceeded or approached your credit limit.
Performance on other credit products, such as loans or mortgages, as reported by credit reference agencies.
Your overall credit score and repayment history.
Account-Specific Notices
If your interest rate is due for an increase, you will be notified in advance. You may choose the following options:
Continue using the account under the new terms.
Close your account before the change takes effect. In this case, your account will enter a paydown phase, during which further use of the card is stopped, and you pay off the balance over time. This choice is irreversible.
Additional Considerations
Interest charges are multi-factorial and not solely influenced by Base Rate changes. Internal reviews use multiple data points unique to each customer. Some decisions may seem unrelated to external interest rate reductions; however, these reflect ongoing risk assessments to ensure compliance with responsible lending practices.
Please note that you can opt in for the interest free period by clearing your statement balance on or before your scheduled repayment date, after your statement has been generated each month. If you clear your statement balance before or on your scheduled repayment date, you would not be charged interest on your next statement.
Additionally, managing your credit responsibly—such as avoiding missed payments, exceeding minimum repayment expectations, and staying within your credit limit—can help maintain or improve your credit profile and avoid interest charges.