A lot of people believe that credit cards are not a necessity and are actually quite dangerous to own. However, if put in the correct hands, a credit card can save your life when you get into some sticky financial situations.
But one card, the Barclaycard, seems to be a bad idea no matter how bad you need it.
Reviews on Credit Karma, the free credit checking website, suggest that most cardholders are completely dis-satisfied with their Barclaycard. The reviews indicated an average 1.6 out of 5 stars with 80 percent of the card’s 97 reviewers giving it a one-star rating.
Nevertheless, about 12 percent of reviewers gave the card a five-star review, so there must be a few pros and cons to having the card for yourself.
THE PROS OF THE CARD
The glaring good point of the card is that it is typically a card that approves those with an average or slightly below average credit score. This means if you have around a 650, you will likely get approved.
After you get the approval, you could also be eligible for rewards when using the card. The rewards are tallied by points that you acquire per dollar you spend on things like gas, groceries, and utilities. Your points never expire and there isn’t a limit to the number of points you can actually have.
Points are then redeemable for merchandise, gift cards, or a general statement credit that can help decrease your overall balance. Lastly, there is actually no annual fee for the card, which is great if you need it in case of emergencies.
THE CONS OF THE CARD
Although the pros may have made it seem like you’d be getting the best deal, the APR, or the annual percentage rate, of this card could leave your head spinning.
While the card typically offers a 0 percent APR rate to active-duty military members, all others can expect to have close to a 25 percent APR.
To give you a bit of insight, studies show that a low credit card APR is around 13 percent, and a high credit card APR is about 23 percent. With this card having close to a 25 percent APR, your interest rates will undeniably go up and you will likely see the effect on your credit score if you have a high balance.
Obviously, many people have had varied experiences with the Barclaycard Credit Card. While having a high balance on your card can only increase the amount of interest you will incur and decrease your credit score, the card is great for those with average or slightly below average credit scores, active members of the military, and those who keep a low balance on their credit cards. You can always apply to see what your APR might be, as those rates can vary person to person.
Keep in mind that, while credit cards are great for emergencies, they can incur a lot of interest. Use them wisely.