MINT leaves sour taste

By ANDREW OXLADE, COLUMNIST
Updated:

 

RBS Advanta customers are set to receive new credit cards in the next few weeks as the firm re-brands itself as MINT. It has marked the change by launching a fresh eight-month interest-free period for new customers.

Long-term interest rates, known as the standard variable rate, will also be reduced for new customers from 12.9% to 10.9%, although not all existing customers will be offered the lower rates. The company will select customers for lower rates. 'We are writing to all card holders,' said a spokeswoman.

Holders of Gold, Platinum, Classic or the new smooth-edged mc2 card will be moved to equivalent MINT cards. The company refuses to say how many customers it has, but as a top ten UK credit card provider the total is estimated to be in excess of one million.

New customers will be offered an interest-free period offered until 1 October 2004 instead of the previous offer to 1 June. All new cardholders will also be offered 0.5% cashback on purchases. However, the small print reveals that customers must spend at least £200 a year to be allowed to collect the money.

On the upside, the offer is one of only a handful to give interest-free credit for more than six months on both balance transfers and purchases.

RBS Advanta launched in 1996 as a joint venture between Royal Bank of Scotland and Advanta. It aimed to challenge market leader Barclaycard's dominance of the UK credit card market.

Along with pioneering rivals such as Cahoot, Capital One and Egg, it was among the first companies to offer interest-free periods on credit cards, which helped draw borrowers away from expensive cards offered by High Street banks.

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