BT Retail Credit Card

MBNA credit card review: BT Retail

THE major problem with most rewards credit cards is remembering to cash in your rewards.

That's why we're big fans of cards that just save you money automatically: that's some the BT retail credit card does very well and on an everyday essential no less!

As well as money off your BT bill as you spend (more handy than ever now since line rental is due to go up at the end of the year), there's a 0% rate for 10 months on supermarket and petrol spending.

The BT retail credit card takes money off your bill as you spend: 1p for every £2 of purchases under £250 a month and 1p per £1 over that amount.

So: spend £1,000 with your BT retail credit card in one month and £8.75 will come off your BT phone bill.

There's a maximum rebate amount of £75 a year (that's £6.25 a month) so if you spend more consider the BT credit card which has no upper limit.

However, if you're an ideal BT retail credit card customer you'll spend around around £700 per month on the card and get your full rebate.

Either way, you'll pay it all back to avoid interest. As with all reward credit cards, that's what makes the rewards worth it.

Avoiding interest should be much easier with the BT Retail credit card's 0% interest rate on supermarket and petrol spending, though.

The 0% purchases rate is ideal for peace of mind if you spend a lot in supermarkets or on petrol or for spreading the cost of a large purchase.

Look out for exclusions, though. Online purchases don't count, for example.

Lastly, note that the BT Retail credit card also has a 0% balance transfer and money transfer rate for the first six months. See below for advice on avoiding interest when using all of these offers.

To sum up, the BT Retail credit card can let you save in three ways at once. Maybe it is good to talk, after all.

Interest Rates and Fees
		Notes..
Typical APR	16.9% APR (variable)	The typical APR is the rate most people are offered.
Introductory Purchases	0% for 10 months	Only applies to: - Purchases at most major UK supermarkets (including Tesco, Sainsbury's, ASDA, Morrisons, Waitrose, Iceland, Somerfield, Co-op and Aldi), and petrol retailers (including supermarket petrol stations). This offer excludes all online purchases, any financial or insurance related product, vouchers purchased through Grass Roots Group, or services from a third party which is associated with a supermarket or petrol retailer. Payments will be applied towards 0% balance transfers before 0% purchases. However, once the 0% balance transfer period ends, payments will be applied first towards 0% purchases. After the introductory period purchases will be charged at the standard rate of 16.9% p.a.
Balance Transfers	0% for 6 months Includes transfers to a current account (4% fee)	Must be made within 90 days of account opening to qualify. Also includes money transfers to a current account, but with a 4% handling fee. Payments are applied towards 0% balance transfers before 0% purchases, but when the 0% balance transfer period ends payments will be applied towards 0% purchases before standard rate balance transfers or money transfers. After the 0% balance transfer period ends, balance transfers are charged at the standard rate of 18.9% p.a. and money transfers are charged at the standard rate of 20.9% p.a.
Balance Transfer Fee	2% (£3 minimum)	This fee applies to balance transfers. Money transfers will be charged a 4% fee.
Cash Withdrawal Rate	27.9% p.a. (variable)	-
Cash Withdrawal Fee	3% (£3 minimum)	-
Annual Fee	None	-
Foreign Transaction Fee	2.99%	This fee will be charged if you make a purchase or cash withdrawal in a foreign currency.

Rewards
		Notes..
Reward #1	BT Phone Bill Rebate	You'll earn: - 1p discount for every full £2 spent in purchases up to £250 in a month - 1p discount for every full £1 spent in purchases over £250 in a month - The maximum discount you can earn in any 12 month period is £75. - Discount rebates will be automatically credited to your BT phone bill. - If you have any surplus discount it will be rolled over to the next month.

Cardholder Services & Extras
Online Account Management		You can log in to a website and manage your MBNA BT credit card account online. Optional paperless statements.
Fraud Guarantee		There is no liability or excess to pay for theft, loss or fraudulent use online or on the high street, as long as you notify MBNA as soon as your card cannot be found or you notice any unsual transactions on your account.
Fraud Monitoring		Fraud Warning System MBNA will monitor your account for any suspicious activity. They also offer a purchase disputes team and a 24/7 365 helpline.
Identity Protection		MBNA do offer a Identity Theft Protection Scheme, which is a free booklet offering advice on how to protect yourself from ID theft.
Verified by Visa		An extra layer of security when shopping online. Register and set up a password-protected identity-check when you shop online with participating online retailers.
Purchase Protection Insurance
Purchase Delivery Insurance
Comprehensive Travel Insurance
Travel Accident Insurance
Travel Inconvenience Insurance
Assistance Abroad
Emergency Card Replacement
Other Extras	- 24 hour UK based customer services - Up to 3 additional cardholders free.
Optional Extras	These are extras that you can choose, but you will have to pay for them. - Payment protection - Card protection - Identity protection alert.

Payments & Payment Details
		Notes..
Credit Limit	£1,500 assumed	Credit limit subject to status.
Interest Free Period	Up to 50 days	For purchases if you pay your statement balance in full and on time every month. There is no interest free period for balance transfers, money transfers or cash advances - except for those within an interest free promotional offer.
Minimum Monthly Payment	1% (£25 minimum)	If your balance is less than £25 you must repay your balance in full. Otherwise, you must repay the greater of: - £25, OR - 1% of your statement balance before any default charges and interest, plus any default charges and interest on the statement.
Allocation of Payments	Low interest rate balances » Higher interest rate balances	Where there are two or more balances at the same promotional rate they will repaid in the following order: - The one which expires first, Then - If the expiry dates are the same - the one which started first, Then - If the expiry and start dates are the same - the one with the lowest standard rate.
Default Charges	£12	This is how much you will be charged for late payments, returned payments and if you go over your credit limit.

Card Details
		Notes..
Online Application	Yes
Card Type	Classic	-
Payment Company	Visa	The company who provides the payment technology and infrastructure to allow you to use this credit card. Retailers and ATM machines displaying the 'Visa' logo will accept this credit card.
Card Issuer	MBNA	The bank who issues this credit card.
Card Advertiser	MBNA British Telecom	The company who advertises and promotes this credit card.

Review Continued...

Three money-saving offers combine in the BT retail credit card.

Read on to find out how you can save on your BT phone bill as well as spread the cost of purchases and duck high-interest on cards elsewhere.

Rebate on your BT bill

The BT retail credit card offers up to £75 a year off your phone bill.

Line rental is currently £11.25 so that's £135 a year which means you can potentially save 55% of your annual basic phone service costs.

You'll get a penny off your bill for every £2 you spend in the first £250 of the month. So that's £1.25 at most.

Much more lucratively, though, after that you'll knock off a penny for every pound you spend.

0% on Supermarket & Petrol

To encourage you to spend (and save) the BT retail credit card offers 0% on purchases from major UK supermarkets and petrol stations for the first 10 months you own your card.

Note that 'Big UK supermarkets' include Tesco, Sainsbury's, ASDA, Morrisons, Waitrose, Iceland, Somerfield, Co-op and Aldi. 'Petrol retailers' includes supermarket petrol stations.

Two things to note here: first, the BT retail credit card applies purchases to 0% rates first.

That means that if you've used it to spend somewhere that's not a supermarket or petrol station you'll have to pay it off in full at the end of the month to avoid interest.

Second, not only will cash advances not be covered they'll attract a higher interest rate with no interest-free period.

Avoid ATM withdrawals, cashback at the till, gambling transactions and buying currency with the BT retail credit card

Pay off high interest at 0%

There's also a 0% rate for balance transfers and money transfers for the first six months.

That means you can use the BT retail credit card to pay off high interest from elsewhere at 0%. Either by transferring from a credit card or transferring to a loan or overdraft.

Note that there is a handling fee of 2% for balance transfers and 4% for money transfers (both with a minimum of £3). However, both are standard charges.

Using the offers together

Here's a potted version of the BT retail credit card's allocation of payments clause, starting with where the payments are applied first:

• 0% on balance transfers
• 0% on supermarket/petrol purchases
• All other purchases
• Cash transactions.

So: to carry a balance but avoid paying interest with either 0% offer just avoid 'normal' (i.e. non-supermarket or petrol station) purchases and cash transactions.

Conclusion

All in all, if you're a good with juggling a few offers at once so is the BT retail credit card but it's equally suitable for just one good thing at a time.

Apply Online for BT Retail credit card »