Barclaycard Rewards MasterCard (Average Credit) Review

The name “Barclaycard” has been coming up a lot recently, as this is a card that is growing in popularity due to the rewards that it offers and the fact that its target audience is for those with average to great credit. The rates are also competitive within the market, starting as low as 14.99% based upon credit worthiness, but Barclaycard Rewards MasterCard does have a 0% introductory APR for the first 12 months that is an attractive feature.

Another fact that is making Barclaycard so sought after is the fact that the Barclays Group is a name that is well-known around the world. It is known as a top financial institution, which spells out fairness and stability to individuals looking for a decent credit card.

The Rewards

The Barclaycard Rewards MasterCard does reward you on ALL of your spending. This is not a card that says you will only be rewarded for using your card on certain purchases. However, cardholders are able to be awarded more points for specific purchases. The points are as follows: 5,000 points when the first purchase is made; 2 points for every $1 spent on gas, utilities, and groceries; and 1 point for every $1 spent on other purchases.

The 5,000 bonus points that you earn when you make your first purchase is enough to redeem for $50 cash back. These points can also be earned if you do a balance transfer. This is practically the same as receiving a $50 bonus just for using the card.

As for where you spend your card, there is one catch and that is the fact that warehouse-type stores, such as Sam’s Club, are not classified as a gas station or grocery store. This means that you will most likely not receive the 2 points per $1 spent at one of these stores. You would receive the 1 point for every $1 spent instead. This is more of a merchant issue than an issue with the card, as merchants are responsible for their own merchant category codes.

Once you have accumulated your points, you can redeem them for shopping, dining, flights, and much more. In the meantime, you do not have to worry about points expiring, blackout dates, and cash back limits. Barclaycard does reserve the right to remove points if the account is seriously delinquent, the card has been used for fraudulent purposes, or the account is closed.

APR

There are different APR levels on the card based upon what type of activity you engage in. For the first 12 months, there is an introductory APR of 0%. However, maintaining this 0% APR is dependent upon on-time payments. If a payment is late, Barclaycard reserves the right to increase that APR.

Once the introductory period is over, the rate could increase to 14.99%, 17.99%, or 24.99%. Which rate you receive depends upon your creditworthiness and the Prime Rate at that time. When the Prime Rate changes, the APR for Barclaycard will change to coincide with it, which means it could be a rate other than the aforementioned rates.

The 0% introductory APR also applies to balance transfers, but it lasts for 15 months versus the 12 months on purchases. Once the period is over, the regular APR will be the same as the APR for purchases. Again, creditworthiness and the Prime Rate will determine what this APR will be.

There is no introductory APR on cash advances. The rate of 25.24% (Dec. 2012) applies to all cash advances regardless of a person’s creditworthiness. This rate is always subject to change.

As for the penalty APR, it can be as high as 30.24% (Dec. 2012), depending upon the cardholder’s creditworthiness. This is the type of APR that you could see if you make a late payment. This rate can be applied during your introductory period, as a late payment can disrupt your introductory rate. Barclaycard does state that this rate can be applied indefinitely, which means it may not go down after a certain number of on-time payments are made. This is completely up to the discretion of Barclaycard.

If you find that you want to avoid paying the interest, Barclaycard will not charge you interest on your card if you pay off your entire balance by your due date. Your due date is 23 days after your billing cycle closes. If you have a high interest rate on this card, such as the rate that results from a late payment, paying your balance off in full is the ideal way you can avoid paying that rate. At the same time, you have earned rewards on your purchases.

Fees

In regards to fees, the fact the card does not have an annual fee is attractive. Some rewards cards come with some kind of fee, but this is not one of them. There are, however, other fees that can result from specific activities and they are:

• $10 or 4% of the dollar amount of balance transfers, whichever amount is greater. During the 15 month introductory period on balance transfer APR, the fee is $10 or 3%, whichever amount is greater.
• Cash advances are $10 or 5%, whichever amount is greater.
• Foreign transactions are 3% of each transaction amount in U.S. dollars.
• Late payment fee can be up to $35.
• There is no over limit fee.
• There is a fee of up to $35 for any returned payments/checks.
• There are no maintenance fees.

All fees are subject to change. The fact that there is no over limit fee is attractive to cardholders, as many cards have such a fee. When a card has an over-limit fee and a cardholder is close to their limit, something such as a late payment can cause the card to go over its limit and trigger the over limit fee on top of the late fee. With Barclaycard, it is difficult to make a charge if the money is not there and no over limit fee means cardholders do not have to worry about Barclaycard’s own fee surpassing the limit and causing another fee.

The Catches

While the Barclaycard Rewards MasterCard is a relatively good card to own, there are some things in the small print to know about. For instance, the account does have to be in good standing in order to redeem points for rewards. You also have to make sure the card is used regularly because a card that is dormant for three months or more may no longer be a part of the Barclaycard Rewards World MasterCard Program.

Another fact to be aware of is that if MasterCard finds that your creditworthiness has dropped to a point where they feel they cannot offer you credit, it is possible for the card to be revoked without any notice. This means any unredeemed points can be forfeited.

Despite these catches, a person with a steady credit history, a need to use a card regularly, and who makes payments on-time can fully enjoy all of the benefits that the Barclaycard Rewards MasterCard has to offer. It is an affordable card to own and is ideal for individuals of all walks of life. The frequent traveler, the person who loves restaurants and the avid shopper can all benefit from the rewards.

Have you had any personal experience with Barclaycard Rewards MasterCard Card?