Post Office Credit Card

Post Office credit card review

YOU'LL generally find the Post Office Platinum credit card skulking around the top of use abroad credit card tables but this card is no one-trick pony.

That's not to say that the first trick isn't impressive, though. The Post Office Platinum credit card offers 0% commission on overseas purchases - most charge 2.75% on every overseas transaction so there's potential for huge savings.

Newly updated - the Post Office are now also waiving any cash handling fee on foreign currency purchased from the Post Office before your trip, saving you another 2.5%. Bear in mind foreign currency is charged as a cash withdrawal and interest rates are higher and will start from the date of transaction - so make sure to pay them off promptly if not straight away.

For its next trick the Post Office credit card offers one of the longest 0% balance transfer periods on the market as well as two shorter 0% balance transfer deals of five months each in the next two years.

As 0% balance transfer credit cards become increasingly hard to come by, that makes the Post Office credit card the perfect product if you have other high-interest credit cards - even if you don't yet need to move a balance from them.

There's also a 0% rate on purchases for the first 3 months and, for larger purchases (£500 to £2,000) that will take longer to pay back, the Post Office credit card's loan facility will charge just 6.8% interest p.a.

In all, the Post Office Platinum is the very definition of a good all-rounder offering truly long-term benefits as well as excellent introductory offers.

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 3 months	Payments are applied towards introductory rates first.
Balance Transfers	0% for 12 months another 0% for 5 months in 2011 & 2012	Must be made within 3 months of account opening. Payments are applied towards introductory rates first.
Balance Transfer Fee	2.98%
Cash Withdrawal Rate	24.1% p.a. (variable)
Cash Withdrawal Fee	2.5% (£3 minimum)	Cash handling fee is not charged on foreign currency purchased from the Post Office.
Annual Fee	None	-
Foreign Transaction Fee	0%	There is no fee charged on transactions made in a foreign currency. This fee will be charged if you make a purchase or cash withdrawal in a foreign currency.

Rewards
		Notes..
Reward #1	2-in-1 Loan	6.597% p.a. (variable) pre-arranged loan for up to 2 purchases costing from £500 to a total of £2000. As a cardholder you'll be able to phone the Post Office to prearrange this low rate loan with a separate payment plan to your normal card purchases.

Cardholder Services & Extras
Online Account Management		You can log in to the Post Office website and manage your Post Office Platinum credit card account online.
Fraud Guarantee		You won't be held liable for fraudulent transactions that occur if the PIN is not used with the Chip & PIN card and where you are an innocent victim of fraud.
Fraud Monitoring		24/7 Fraud Monitoring A Security System will monitor potential fraudulent transactions at all time and they will get in touch with you if they notice anything suspicious.
Identity Protection
MasterCard SecureCode		The issuing bank does not currently support MasterCard SecureCode - however this is likely to change in the future as more banks and building societies adopt the new technology. You can check for the latest participating credit card issuers here: http://www.mastercard.com/uk/personal/en/cardholderservices/ securecode/index.html
Purchase Protection Insurance		Almost everything you buy with the Post Office Platinum credit card will be insured against accidental damage and theft for up to 90 days from purchase.
Purchase Delivery Insurance		Mail order items are not excluded from the 'Purchase Protection Insurance' policy.
Comprehensive Travel Insurance
Travel Accident Insurance
Travel Inconvenience Insurance
Assistance Abroad
Emergency Card Replacement		International Emergency Assistance If your card is lost or stolen abroad, the Post Office will ensure a replacement card is issued as soon as possible. If you lose your card at the beginning of a trip, they may also be able to arrange an emergency cash advance until your new card arrives.
Other Extras	» 24/7 Fraud helpline » Up to 3 additional cardholders for free » 365 day customer service.
Optional Extras	These are extras that you can choose, but you will have to pay for them. » Payment protection.

Payments & Payment Details
		Notes..
Credit Limit	£500 minimum	Maximum credit limit is subject to status.
Interest Free Period	Up to 56 days	For purchases if you pay your balance, plus the minimum payment due on any Payment Plans, in full and on time. There is no interest free period on balance transfers outside of any 0% offer or on cash advances.
Minimum Monthly Payment	2.5% (£5 minimum)	The minimum monthly payment will be the greatest of: - 2.5% of the outstanding statement balance (minimum £5), OR - The full balance (if less than £5), OR - The total of interest, plus any insurance premiums, plus any monthly Payment Plan payment.
Allocation of Payments	Payment Plan payments » Interest on fees » Most Fees » Insurance Premiums » Interest on Balance Transfers, Purchases & Cash Advances » Cash Advance Fees » Balance Transfers, Purchases & Cash Advances
Default Charges	£12	This is how much you will be charged for late payments, returned payments and if you go over your credit limit.
Copy of Statement Fee	£5	This is the fee you will be charged for duplicate statements.

Card Details
		Notes..
Online Application	Yes: Instant Decision	You'll receive an instant decision when you apply online. Remember: always ensure you meet the application requirements before applying, as getting rejected can affect your credit score.
Card Type	Platinum	-
Payment Company	MasterCard	The company who provides the payment technology and infrastructure to allow you to use this credit card. Retailers and ATM machines displaying the 'MasterCard' logo will accept this credit card.
Card Issuer	Bank of Ireland	The bank who issues this credit card.
Card Advertiser	Post Office	The company who advertises and promotes this credit card.

Review Continued...

Use Abroad

The headline-grabbing feature of the Post Office Platinum credit card is that 0% commission on foreign transactions.

It's rare for debit cards to offer this nowadays never mind credit cards which also have the advantage of added security on purchases so this card is a must if you're going to be spending overseas any time soon.

The Post Office are also now waiving any cash handling fee on foreign currency bought from the Post Office before your trip - a saving of 2.5%. However, don't forget foreign currency is still classed as a cash transaction for interest purposes - and higher rates will be charged from the date of transaction even if you clear your statement balance in full.

So make sure to promptly repay any foreign currency purchased before you leave the UK to avoid any nasty surprises on your return.

Use for 0% on Balance Transfers

You can use the Post Office credit card's 0% balance transfer offer to clear any outstanding credit or store card debts for the first year that you own the card.

You'll also get two more 0% balance transfer deals in 2011 and 2012, they'll both last for five months.

All balance transfers are subject to a transfer handling fee of 2.98% which is a standard charge for deals of this length.

Note also that the Post Office credit card is also one of a handful of cards in the UK that will allow you to move 0% credit straight to your current account.

That's right, this is a super balance transfer credit card so you can use the 0% balance transfer deal to pay off existing overdrafts, small loans or even for accruing some extra interest on a high-interest savings account.

Use for 0% on Purchases

The Post Office Platinum also offers 0% for purchases for the first three months, a nice extra which could be an excellent way to spread out a period of high spending.

Use for a 2-for-1 loan

If, on the other hand, you want to spread the cost of a particularly large purchase over a longer period of time the Post Office credit card has a unique way to do it.

With a pre-arranged loan you can choose to pay a low 6.8% p.a. interest rate on any purchase between £500 and £2000.

As long as you keep making the minimum repayments you can take as long to pay it back as you like and, as long as you're accepted, you can do the same thing again and again.

But can you use them together?

When a credit card claims to do so many things all at once there's always a concern about how the different offers will affect each other.

In the case of the Post Office Platinum credit card, payments are applied equally to all purchase and balance transfers (i.e. regardless of interest rate) which means that it's more difficult to 'trap' certain balances and increases the Post Office credit card's standing as an all-round credit card.

The only two instances when this isn't the case is with cash transactions (so ATM withdrawals, cash back and gambling transactions) and loans.

Loans must be paid back in full before any other balances so it's vital to clear any high-interest balances (e.g. purchases after the 0% offer) before taking out a pre-arranged loan and not spend while paying the loan back over a number of months.

Cash withdrawals, which are also subject to a higher interest rate as well as a one-off fee, must be paid back before purchases or balance transfers. However, since this is the highest interest rate that shouldn't be too much of a problem.

Cash transactions should be avoided using credit cards in any case.

Final Word

In all, the Post Office credit card offers a smorgasbord of excellent offers, especially if you're going abroad.

Apply Online for Post Office credit card »