Finance Choices
Post Office Credit Card
The Post Office enters the credit card market
The Post Office has entered the credit card field by offering a "two for one" deal, allowing flexibility when paying for large purchases.
As well as being a normal credit card, the Post Office version enables customers to switch money from the credit card account to a loan-like resource, which has a discounted interest rate of 6.8 per cent.
They can transfer up to two purchases between £500 and £2,000 at any one time as long as it is within a month of making the purchases.
David Mills, the chief executive of Post Office Ltd said: "By launching this unique 'two in one' credit card we're setting a challenge to all other providers.
"Offering customers a flexible way of paying for larger purchases at a market-leading, discounted rate is something we believe provides real financial benefits and will shake up the market, challenging other lenders who impose higher rates."
The credit card will have a standard interest rate of between 12.9 per cent and 14.9 per cent and its special joining offer is zero per cent interest on balance transfers and purchases for the first six months.
The Post Office Credit Card
The new Post Office credit card can be used like a credit card or a personal loan, depending on what you're using it to buy.
For normal use, the standard rate is 14.9% typical APR, but for larger purchases of £500-£2,000 you can choose to use the card like a pre-arranged loan, and repay your purchase over 12 months at a lower rate of just 6.8%. Up to 2 purchases at a time can be repaid at this rate, so long as the combined value isn't more than £2,000.
This card also features 0% on balance transfers and purchases for six months, no annual fee, free purchase protection and optional payment protection.
Summary
This really is a great new product from the Post Office, a credit card which can be used for smaller purchases as a traditional credit card borrowing facility or for larger purchases as a personal loan.
A fantastic idea and will prove to be very popular, expect other credit card companies to follow suit and create products similar to the Post Office Credit Card.
The Post Office has entered the credit card field by offering a "two for one" deal, allowing flexibility when paying for large purchases.
As well as being a normal credit card, the Post Office version enables customers to switch money from the credit card account to a loan-like resource, which has a discounted interest rate of 6.8 per cent.
They can transfer up to two purchases between £500 and £2,000 at any one time as long as it is within a month of making the purchases.
David Mills, the chief executive of Post Office Ltd said: "By launching this unique 'two in one' credit card we're setting a challenge to all other providers.
"Offering customers a flexible way of paying for larger purchases at a market-leading, discounted rate is something we believe provides real financial benefits and will shake up the market, challenging other lenders who impose higher rates."
The credit card will have a standard interest rate of between 12.9 per cent and 14.9 per cent and its special joining offer is zero per cent interest on balance transfers and purchases for the first six months.
The Post Office Credit Card
The new Post Office credit card can be used like a credit card or a personal loan, depending on what you're using it to buy.
For normal use, the standard rate is 14.9% typical APR, but for larger purchases of £500-£2,000 you can choose to use the card like a pre-arranged loan, and repay your purchase over 12 months at a lower rate of just 6.8%. Up to 2 purchases at a time can be repaid at this rate, so long as the combined value isn't more than £2,000.
This card also features 0% on balance transfers and purchases for six months, no annual fee, free purchase protection and optional payment protection.
Summary
This really is a great new product from the Post Office, a credit card which can be used for smaller purchases as a traditional credit card borrowing facility or for larger purchases as a personal loan.
A fantastic idea and will prove to be very popular, expect other credit card companies to follow suit and create products similar to the Post Office Credit Card.
posted by Barbara Gordon at 2:22 PM
Post Office Credit Card
10 Comments:
The Post Office credit card is a new credit card from the great British institution - the Post Office! The post office has, for a long time, offered various financial products like savings, insurance and loans so it is surprising it has taken them so long to launch a credit card.
The big difference with the post office credit card is that it is a dual use card meaning you can use it as a credit card, with competitive rates or if you need to make a big purchase you can pre-arrange a personal loan on the card which carries a much lower rate of interest than regular purchases. You will still have to make a minimum payment but pre-arranging a loan for a purchase on the card carries an interest rate of just 6.8% pa. So if you wanted to buy, say a new TV on your card, you could buy the TV as normal and then simply call the post office who will arrange for it to be put on the lower "loan" rate. You then have to pay that amount off in a 12 month period.
Of course for you could just use the Post Office credit card like any normal credit card. They offer a great 0% on balance transfers and purchases for the first 6 months from account opening and then a standard rate of 14.9% APR.
The new Post Office credit card can be used like a credit card or a personal loan, depending on what you're using it to buy.
For normal use, the standard rate is 14.9% typical APR, but for larger purchases of £500-£2,000 you can choose to use the card like a pre-arranged loan, and repay your purchase over 12 months at a lower rate of just 6.8%. Up to 2 purchases at a time can be repaid at this rate, so long as the combined value isn't more than £2,000.
This card also features 0% on balance transfers and purchases for six months, no annual fee, free purchase protection and optional payment protection.
The Post Office has launched a new credit card on to the market with high expectations of attracting customers with a 0% balance transfer offer and 0% interest on purchases for the first six months as an introductory offer and an integrated loan option to boot.
The Post Office has teamed up with the Bank of Ireland to bring you this new credit card which offers competitive rates for credit card repayments and loan repayments on substantial purchases. After the first initial six months the interest rate becomes 14.9% and the loan APR will be at a fixed rate of 6.8%. These are very competitive rates in today?s market.
So how does the credit card/loan work? If you make a purchase between £500 and £2,000 then you have the option of transferring it onto the loan facility which comes with the credit card, transferring your payment onto the loan means that your repayments will be much lower given the APR on the loan is only 6.8%. You can transfer the payment onto the loan facility twice in one year.
Insurance is another feature of the MasterCard. Insurance on purchases with your card is free, it won?t cost you anything.
The ?two in one? MasterCard has been likened to the Barclaycard Combinations credit card where trials are underway. The Combinations card offers a three times a year transfer of some or all of your credit card balance to another lower rate repayment scheme where the repayments are flexible above a minimum amount so your balance can be paid off quicker and will cost you less. If the Barclaycard Combinations card is successful then it may be rolled out across the country to the wider market.
The Combinations card is aimed at those who look around for better deals once their introductory offers of 0% interest on balances and purchases have ended as these credit cards often have a high interest rate and very little incentives once the initial offer has ended. The combinations card has a good ongoing offer after their initial introductory period.
The new credit card from the Post Office is being seen as a drive to try and make consumers aware of sensible borrowing and spending. The country owes more than a trillion pounds with credit card spending and loans, it is enough to make anyone go weak at the knees just thinking about it.
Hi, I just applied online for the post office credit card, No bad I thought 0% balance transfer for 6 months and no balance transfer fee, I was accepted online but have been allocated a £500.00 limit. The balance transfer I am planning to make is about £1100.00. Is it worth calling Post Office when I recive the paperwork to ask them to increase the limit or am I wasting my time,
If you have had the post office card how have you found it?
Any advice would be great,
Thanks
Do you see any reason why they gave you such a low credit limit? If not, you have nothing to lose by phoning them up and ask for a higher limit. But I would phone them now before you receive the paper work. If they don't increase your limit, you may want to tell them that the card is of no use to you and there's no point in going ahead with your application.
I think the Post Ofiice tends to give low credit limits on their cards.
Hi,
I have recently been rejected for the Post Office Credit Card.
I have a totally clean credit history but have appied for quite a few CC and 2 current accounts this year - stooz fever .
However a relation who works for the Post Office (not their Credit Card bit) informs me that lots of PO workers have applied and nearly all been rejected.
Rumours are that they are linked with an Irish bank to provide the card and it is costing them more than they thought. So they are being Very strict and rejecting many.
Be careful applying for their card if you have any recent credit hits or you will just add another search to them and get no card.
I am left wondering how long to wait before trying another Card application.
Good Luck all.
Yes I got rejected for the post office card too and was wondering if I'd been overdoing it. I did phone up to appeal. They said they would send a form but after reading this thread I don't think I'll bother. Trouble is, I've left it too late now to get another card (I applied 3 weeks ago) I think I'll pay this one off as I have another card that runs out next month so will have to apply a second time. Both of those cards are running too close together anyway.
Good design!
[url=http://wfgzbjcc.com/rckr/olmi.html]My homepage[/url] | [url=http://euqdwbmk.com/vizy/zynz.html]Cool site[/url]
Well done!
My homepage | Please visit
Well done!
http://wfgzbjcc.com/rckr/olmi.html | http://iadawhbq.com/dcgx/hfff.html
Post a Comment
<< Home