This isn't just any bad deal, this is an M&S 0% credit card bad deal
Marks and Spencer is about to make changes to its credit card that will leave its new customers worse off.
At first the headlines look good: customers can now take out a card and get 0% interest on new purchases until the end of July 2008. This 9 month interest-free period is an improvement on the existing eight-month deal. And you can still earn loyalty points that get you money off in store.
At first the headlines look good: customers can now take out a card and get 0% interest on new purchases until the end of July 2008. This 9 month interest-free period is an improvement on the existing eight-month deal. And you can still earn loyalty points that get you money off in store.
But the standard interest rate has been increased by 1% to 18.9%. The interest charge on cash advances is 1% higher at 21.9%.
And the balance transfer charges are also being modified. Existing customer could transfer a balance free of charge and fix it at 5.9% until it is paid off. But for the new card, the balance transfer rate is 7.9% and lasts for only two years.
This is well behind other deals available on the market. Virgin Money offer a 0% balance transfer rate for 15 months, but charge a 2.98% transfer fee. Mint will let you transfer a balance until December 1st 2008 and pay no interest. Their fee is 2.5%.
Come on Marks and Spencer. Its one thing charging a premium for hand smoked salmon, but there's no reason to charge a premium for the money your customers borrow from you.
Added : Friday 15th February 2008 14:00
