BT Credit Card - Rate Changes

BT has rung the changes to its credit card but customers should be cautious. The card has some worthwhile features like discounts on BT bills, 0% on balance transfers for 13 months and 0% on purchases for three months.

But only those who use the card for one purpose only - either to pay off debt or to trim their BT bill - will benefit. Anyone taking advantage of all the offerings could end up stung with interest charges.

Andrew Hagger, of Moneynet.co.uk, says: "The discount on BT bills, at 1p for every £1.50 spent, is better than the cashback on most other cards, working out at 0.66%, compared to an average 0.5%. If someone spends £500 a month on the card and pays that off in full they will get £40 off their BT bill over a year.

"But that could be wiped out by interest charges of 16.9% after 90 days."

The order of repayments means the cheapest debt is paid off first, leaving more expensive transactions on the card until you've repaid the balance transfer in full.