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).
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. Please note that the decision to initiate the paydown phase is final, and reopening the account or resuming transactions on the associated card will not be allowed. During this paydown phase, your card will be permanently deactivated for new transactions, and the account will be marked as closed on your credit report once the outstanding balance reaches £0.
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. However, interest may still accrue on remaining balances during a paydown phase, unless you opt into an interest-free period or meet the criteria for one.