Credit card giant Barclaycard has announced the trial launch of a new kind of credit card that rewards you with a lower interest rate if you pay back more of your balance.

The new card, called the Repayment Rewards Card, has currently only been issued to a small number of customers, but Barclaycard say that they hope to make it more widely available by the end of this year.

Users of the card will be charged an interest rate that varies between 9.9% for people who paid back more than 10% of their balance in the last full billing month, up to 16.9% for people who only make the minimum repayment of 2.5% of their balance.

By comparison, Barclaycard’s main credit card, the Platinum, has a standard rate of 15.9% typical APR.

While the lower rates may be attractive to people who regularly repay a chunk of their balance, the opposite would seem to apply with people who are already in debt and possibly struggling to meet repayments being penalised further with higher interest rates.

This entry was posted on Wednesday, September 21st, 2005 at 8:14 pm and is filed under New Cards. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.