Post Office Credit Card Launch

by Gill Montia

Story link: Post Office Credit Card Launch

The Post Office is launching a new credit card and has at the same time published research showing that almost two thirds of credit card customers are attracted by offers and incentives and yet are not making the most of the offers available.

According to the survey, 19.6 million, or 60%, of card users don’t take advantage of benefits on offer, with 49% receiving nothing at all. Of those who do engage with incentives, such as cash-back and reward schemes, the average benefit to the card-holder amounts to £37 a year.

However 60% of consumers reported that they would remain loyal to their credit card provider if they could find one that offered long-term value across the board. The features most valued by consumers include low interest rates, 0% on balance transfers and 0% on purchases.

The new Post Office credit card will offer 0% interest on balance transfers for 10 months; 0% interest on balance transfers for 5 months on anniversary in 2008 and 2009; 0% commission on purchases overseas and 0% interest on purchases for three months. Once the promotional periods have expired the card will charge 15.9% APR typical (variable).