BBC News – Saturday, 4 February 2006:
Barclaycard customers who pay their bills in full each month may have their payment date suddenly brought forward, the bank has told the BBC. The move could put customers at risk of incurring a £20 late payment fee if they do not examine their bills carefully each month.
Barclaycard denies it is trying to rake in late penalties, and says it never guarantees customers a fixed payment date each month.
Barclaycard’s Ian Barber said Barclaycard was “having to face up to the fact that clearly we are not making as much money out of customers that pay their bill in full as we are out of those that borrow”, he said. He added that the company was “quite open about it… if you pay your bill in full every month you may get a few days less to pay… That is the fact of it and we are not going to shy away from that.”
My advice for those that can pay cash for everything: buy things on credit and put the equivalent cash into a high-yield savings or investment account. This does three things: reduces the aggregate rate of your loan, builds credit history, and leaves you emergency cash within reach. This is what I’ve done since University for cars etc.