A MAJOR high street bank is axing a key service for tens of thousands of customers.
Metro Bank will stop offering credit cards to all regular customers from today, September 10.
1
Customers with a Metro Bank Personal Credit Card can no longer withdraw cash or make purchases.
Metro Bank’s business card and overdraft products will not be impacted by the change.
Since June, customers have not been able to apply for the card, which had no fee and a flat 18.9% interest rate.
If you still have an outstanding balance on your Metro Bank credit card after today, you can continue to make repayments as usual.
If you have any outgoing monthly subscriptions such as Netflix linked to this credit card then you must move them to a new card because they won’t renew.
There’s no time limit on repaying the debt.
Once you’ve repaid your balance in full and it’s at £0, Metro Bank will then close your account and write to you to confirm this.
You won’t be forced to pay off your debt in full.
The bank says that all repayment options will continue to be available to affected customers after the service closes today.
Also, customers will continue to receive monthly statements and be able to set up or amend direct debits and payment plans, as well as make one-off payments at any time.
Your statement will continue to show the minimum repayment amount required each month.
Customers must pay Metro Bank the minimum payment by 4pm on or before their payment due date.
The minimum payment is the highest of:
- £20 (or the balance if less than £20)
- Any fees and charges for the month, plus 5% of your remaining balance
Remember, if you only make the minimum payment, it will take longer and cost you more to clear your balance.
Metro Bank will allow customers to transfer their credit card debt onto a new credit card.
This means those who can’t afford to pay off their balance in full could transfer it to an interest-free balance transfer credit card.
These cards allow customers to temporarily stop paying interest for up to 29 months for a small processing fee of 2-4%.
If you want to pay your debt down completely, you should avoid spending extra money on these cards.
With MBNA’s market-leading offer, customers can stop paying interest for 29 months.
However, they need to take into account a 3.49% transfer fee.
Those with less-perfect credit scores might be eligible for a 16-month Virgin Money card with a 3% transfer fee.
Those with poor credit scores could be eligible for Fluid’s nine-month interest-free balance transfer card, which also charges a 3% transfer fee.
How to find the best credit card deals
It’s a good idea to use an eligibility calculator before applying for a credit card, as credit card applications leave a mark on your credit file and a rejection can affect your credit rating.
To assess all the available cards, try using a price comparison website like MoneySavingExpert’s Cheap Credit Club or Compare the Market.
Once you run your details through an eligibility calculator and you’ve been shown that you’re likely to be accepted, make a formal application.
To do this, you will need to provide your name, address and email address as well as details of your income so a provider can assess your eligibility.
You will also need to provide details of how much money you want to transfer to the new card, but you can often do this after you have been accepted.
If your application is approved, you will need to transfer the balances within a set period, usually around 60 or 90 days.
Your old balance will then be cleared, and you can start making interest-free repayments with your new card.
How to shift your credit card debt quickly
By James Flanders, Consumer Reporter
UK Finance reports that we spend a whopping £2 billion a month using our credit cards.
While that little strip of plastic makes everyday spending easy peasy, it comes at a huge cost.
According to The Money Charity, the average credit card debt sits at £2,485 per household or £1,312 per adult.
And if you’re stuck on a credit card with a high APR and only making the minimum repayments, you could be forking out hundreds of pounds extra in interest charges.
For example, if you owe £1,312 on your credit card and are charged 24.8% APR.
If you don’t make any more transactions and pay £100 a month in repayments, you will pay off the card by September 2025 but at £207 in interest.
However, by hunting around for a better deal elsewhere and switching to a balance transfer credit card with a lengthy interest-free period, you can save yourself £162.
If the same person was accepted for a 28-month-long zero-interest credit card with a 3.4% balance transfer fee and made the same £100 repayments each month.
They would pay off the debt sooner, in July 2025, and only fork out £45 towards the 3.4% balance transfer fee.
Before taking out a new credit card or increasing the amount you borrow, it’s vital to consider the consequences.
You should only borrow money if you can afford to pay it back.
It’s always vital to ask yourself if you need to borrow before committing to a new credit card, personal loan or overdraft.
If you use a credit card, I’d recommend that you always pay off your balance in full at the end of each statement period.
Lenders have a responsibility to help customers who are in debt.
If you’re in a debt crisis, your first point of call should be your lender.
They might help you out by offering you a reduced interest rate or a temporary payment holiday – so check in with your lender if you’re struggling.
