Barclaycard Repayment Rewards card tested

Barclaycard has announced it's testing a new card, which is designed to encourage customers to repay their balances on time and efficiently.

The incentive comes in the form of a lower rate of interest for those who pay off a higher proportion of their balance monthly.

Keith Coulter, managing director of UK consumer cards and loans, said: "Repayment Rewards is about finding new ways to help customers while encouraging a responsible approach to their borrowing."

For example, customers paying back the 2.5 per cent minimum repayment have a rate of 16.9 per cent, while those paying off more than ten per cent have a rate of just 9.9 per cent.

The Barclaycard Repayment Rewards is the second card this year from Barclaycard that aims to encourage more sensible finance control from consumers.

The Barclaycard Combinations, which combined a credit card with a loan facility was launched earlier this year.