The Post Office Classic Mastercard

Since branching out into financial services the Post Office has acquired a good reputation, particularly when it comes to obtaining commission free foreign currency. Naturally the Post Office Classic credit card also comes with the same free service, making the card a good choice for holidaymakers, particularly as overseas purchases are also commission free.

The Classic card also offers a special low interest rate of 6.8% on purchases costing between £500 to £2,000 on a fixed payment plan, an excellent offer for those who want to purchase high ticket items.

The Classic MasterCard is issued by the Bank of Ireland and is available to those who earn in excess of £8,000 per annum. Its sister card, the Platinum, is only available to those with an income of over £15,000, and is identical in its terms and conditions, but with a slightly lower interest rate. Neither Post Office credit card offers a rewards or cash back programme, which is a disadvantage.

Currently the Post Office Classic is offering 0% ARP on balance transfers for 14 months, for a fee of 2.98%. Transfers should be completed within the first three months of opening the card. One unique feature of the card is that cardholders have the opportunity to make both a second and third balance transfer at 0% APR for five months. The offer is available on the second and third anniversary month of opening the card.

The APR on purchases is also 0%, but only for the first three months before reverting to 18.32%. This is higher than the available rate on the Platinum card which is 15.76%. Both cards charge 24.10% for cash advances, levying a 2.5% fee or a minimum £3. However there is no cash advance fee on the purchase of Post Office travel money. Statement copies are charged at a high £5.

Additionally the Classic card offers 90 days payment protection cover against accidental damage, loss or theft of purchases made using the credit card. Providing balances are paid on time there is a 56 day grace period.

The Post Office Classic card is ideal for those who plan to make frequent balance transfers, as the opportunity to transfer balances for 0% for a second and third time is a unique feature. The flexibility of being able to opt in to a low interest rate fixed payment plan is also a good selling point, especially as the rate of 6.8% is highly attractive.

Card holders who don’t carry a balance or plan to utilize the balance transfer facility may prefer to seek out a credit card with a cash back or rewards programme as a preference. Travellers should consider the advantages of commission free purchases overseas and the commission free holiday currency.