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MBNA credit card review: BT Retail

REWARD credit cards are most rewarding when they get your money off your everyday essentials: the BT Retail Credit Card definitely fits that description offering money off your phone bill as well as the opportunity to do your everyday shopping interest free.

The BT retail credit card offers a rebate on a sliding scale - a penny for every £2 you spend under £250 a month and a penny per pound over that amount.

In practical terms, that means if you use the credit card for £1000 worth of spending in a month you'll get £8.75 automatically deducted from your BT phone bill.

However, you can only get up to £75 back per year (£6.25 a month) so, ideally, on an average month you'll spend a little less than that.

If you do usually spend more than that the BT credit card - which doesn't have a limit on bill rebates - might suit you better.

That card doesn't have the BT Retail credit card's 0% interest rate on supermarket and petrol spending, though.

Since petrol seems unlikely to get cheaper anytime soon and supermarkets seem just as unlikely to start stocking their shelves with fewer products, this could amount to a serious saving.

The 0% purchases rate covers most major supermarkets and petrol retailers, though there are some exclusions including online purchases.

Finally, the BT Retail credit card offers 0% on balance transfers and money transfers for the first six months you hold the card. Note that lower rates are paid off first.

All in all, the BT Retail credit card is a good all-rounder that, used right, can help you to save as you spend in three ways at once.

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. MBNA Europe Bank Limited Stansfield House Chester Business Park Chester CH4 9QQ
Card Advertiser	MBNA British Telecom	The company who advertises and promotes this credit card.

Review Continued...

The BT retail credit card can save you money on BT bills, some purchases and your high-interest credit card balances if you use it correctly.

Read on to find out how to avoid the pitfalls and save as much as possible.

Money Off BT Bills

You can get up to £75 a year off your BT bills with the BT retail credit card which makes it perfect for getting a little extra on your everyday spending.

Spend £250 a month and you'll get a penny off your bill for every £2 (so £1.25 off).

Any extra that you spend will earn you a (much more lucrative) penny for every pound.

We're big fans of this, mainly because it keep its simple. The BT Retail credit card rebate comes straight off your bill: no mucking around with reward points or vouchers.

0% on Supermarket & Petrol

To underline that, there's a 0% rate on purchases made at the UK's major supermarkets and petrol stations for the first 10 months.

That includes Tesco, Sainsbury's, ASDA, Morrisons, Waitrose, Iceland, Somerfield, Co-op and Aldi and petrol retailers including supermarket petrol stations but check with the provider before assuming it'll apply elsewhere.

Note also that this is 0% on purchases only. Avoid ATM withdrawals, cashback at the till, gambling transactions and buying currency as interest will be charged on these at a higher rate.

0% on Balance Transfers

No interest will be charged for the first six months when you transfer a high-interest credit card balance or move money to a current account.

Both are an excellent way to reduce high-interest elsewhere: either from another credit card or to pay off an overdraft or loan.

These come with a handling fee of 2% on balance transfers and 4% on money transfers (both with a minimum of £3).

Using Them Together

Note that the BT retail credit card applies your payments towards the shortest 0% rates first then the cheapest rates so:

• First 0% on balance transfers
• Then 0% on supermarket/petrol purchases
• Then all other purchases
• Then interest on cash transactions.

What that means in practice is that to carry a balance but avoid paying interest you must avoid 'normal' (i.e. non-supermarket or petrol station) purchases and cash transactions.

If you plan to pay the BT retail credit card off in full each month it makes no difference, though.

All in All

All in all, the BT retail credit card is a great multi-tasking credit card - as long as you're a good multi-tasker too.

Apply Online for BT Retail credit card »