NatWest to offer interest-free CC for large shopping purchases

Bank plans to offer interest-free repayment plan to pay off large purchases through installment method rather than normal CC interest rate.

Arutz Sheva Staff ,

Credit cards
Credit cards

One of the UK’s leading high street banks, NatWest, is planning to offer customers holding their credit cards an interest-free repayment plan for all expensive goods. Customers will be able to pay off large purchases through an installment method rather than being charged a normal credit card rate of interest.

This new scheme is very useful for customers who decide that they wish to spread the cost of a big purchase such as furniture, a car, baby items, white goods, mattresses and more.

In order to find out if an item qualifies for the payment plan, customers of NatWest will be able to login to their online banking app and check if it is eligible.

If a purchase has a value of between £300 and £3,000, the customers will be able to select 5 options regarding how they pay it off. They can either pay off the debt in either 6, 9, 12,18 or 24 months.

NatWest have ensured their customers that this new scheme will always be cheaper than if they were to pay normal rates on a credit card.

For example, should a customer decide to buy an £800 sofa on a normal NatWest card, they would usually have to pay 9.9% interest. However, if you opted to pay this back over 6 months, you would pay £138 a month, which includes an extra £24 in interest.

NatWest customers are able to cancel this plan at any point on their online banking application. This can be done without the need to pay a penalty; however, the customer will still be charged a normal rate of interest on the remaining amount.

This is a form of no guarantor loans – so the credit card is unsecured and failing to pay on time can lead to increased fees and damage to your credit profile.

Besides this, if a customer were to miss two of their payments, the amount owed will be charged at a normal rate of interest that would be usually paid on the card. People are also advised that they should only opt for this new plan if they are able to afford the monthly payments.

The managing director of short term borrowing at NatWest, Martin Wise, has said: “Our credit card installment plan can give customers an alternative way to pay off a large purchase in a simple and flexible way in our mobile app.”

Wise has also stated that this scheme will give customers more options but also greater “value, transparency, and flexibility.”