Post Office credit card offer improved

September 30, 2006

By Peter Kenny

The Post Office has revamped its credit card offers to compete in what is increasingly becoming a cut throat UK credit card market this year.

With credit card borrowing dropping quite dramatically for August, credit card companies are doing their best to entice consumers to increase their credit card use.

The Post Office has increased the 0% balance transfer offer from 6 months to 8 months while at the same time decreasing the 0% on purchases deal from 6 months to 3 months. Until now the Post Office credit card was one of the few remaining that did not charge a fee for balance transfers. Unfortunately this has now changed with a 2.5% fee charged on all balance transfers with no maximum.

The standard APR is 14.9% for the Classic card and 13.9% for the Platinum offering. To be able to apply for a Platinum card consumers will have to earn a minimum of £20000 per annum, the minimum wage required for the Classic card is £8000.

One very interesting and positive addition is the introduction of commission free use of the Post Office credit card while abroad. The Post Office now joins the ranks of Nationwide and Saga as a worthwhile solution for people who wish to use their credit card while abroad and to not be charged commission.

The head of Post Office Credit Card, Gary Fitton, said, "Most credit cards charge 2.75 per cent on every transaction made overseas”