The UK credit card market has never been more competitive and one of the more recent providers to offer accounts is the telecommunications giant BT. The card is actually issued by MBNA Bank International, but is administered by and carries the branding of BT. This is a relatively common scenario for MBNA, which affiliates through a number of businesses to offer branded credit cards.
Like any other credit card, there are a number of pros and cons to be considered when taking out an account.
Pros
As the name would suggest, the BT credit card gives discount off the user’s BT account. This is actually quite significantly limited at £75 per year per account, but if the user is simply using the credit card as normal, then this is effectively £75 for nothing.
New applicants receive an interest-free period on purchases and balance transfers for ten months. This can be a useful way of saving money in interest payments for a particular purchase of if the card-holder is carrying a balance elsewhere.
The BT credit card account can be managed online, which means that payments, balance enquiries and other simple transactions can be conducted without having to call a contact centre. Prospective cardholders may also apply for the account online, which makes the process quicker and easier.
There is no annual fee for having the card. Users can choose from one of four different card designs.
As a Visa card, the credit card benefits from the Verified by Visa security layer, which makes online shopping more secure.
The card now comes with contactless technology, which means that for items under £15, customers can pay quickly where shops are equipped to support the technology.
Cons
The most competitive APR offered on the card is currently 16.9%. Whilst this is certainly by no means the highest on the market, other providers offer more competitive rates, including Lloyds TSB, which offers a rate of 11.9%. To complicate things further, the actual APR offered will be dependant on personal circumstances. Some customers will only be eligible for an APR of 24.9%.
The card is managed by MBNA Bank Europe, which is not one of the leading banks in the UK. For example, it is not possible to have a current account with the same bank. Many customers enjoy other benefits and convenience from having all accounts through one provider.
Whilst balance transfers can be arranged at 0% interest for a promotional period, the card provider charges a 3% handling fee on such transactions.
The BT credit card offers some reasonable benefits, particularly for customers that already have a BT telephone or Internet account. Potential cardholders should look into the costs and fees associated with the card, however, to establish whether it is the most competitive for their own situation.