Marks & Spencers &More Credit Card (Marks & Spencer Financial Services)

Member Name: Lush Walrus

Product:	Marks & Spencer Financial Services
Date:	28/12/04 (9643 review reads)
Rating:

Advantages: Spend money & get coupons

Disadvantages: Has been taken over by HSBC, loyalty scheme might go

As I write this review, I’m smugly eyeing my beautiful new long black dress, my latest purchase from The Autograph Collection at M&S. Although worthy of any red carpet I paid £60 for it, £110 less than you will if you buy that exact same dress today. How did I manage that, well read on and I will reveal all!!!


There are a few key points to remember and a little patience, then you too can receive discounts off of anything you choose in M&S, four times a year!


The Background

I’m not going to patronise any of you and tell you the story of M&S as I’m sure you all have heard of, been in or brought things from M&S. As a little reminder, its predominantly a chain store, originally selling male, female, and children’s clothes. The range of items has expanded over the years to include shoes, accessory’s, toiletries, kitchen equipment and furniture. Although recent years reports on the store have been very poor, particularly stating it is behind the times, like many other popular stores it has now diversified into areas outside of retail.


M&S Money

The major area of diversity for M&S was in the introduction of Marks & Spencer’s Money. The all encompassing beast that was part of the retailers bite at the institutional bank. With the launch of M&S Money came an underlying statement aimed at the banking institutions of whatever you can do we can do better. Of course M&S aren’t the only ones to enter into the banking realm, amongst others are Tesco, Sainsbury’s and new comer company’s such as Egg. The services offered under the umbrella of M&S Money are a combination of services traditionally found in banks or insurance offices. These include:

Lending (Personal Loans, Car Buying Plans),
Investing (ISA, Unit Trust, Pensions),
Insurance (Travel, Car, Home, Pets! And Weddings!!!!),
Saving (Mini Cash ISA)
&More (Travel Money, Credit Card, Charge Card).


The Credit Card Revolution

I'm sure many of you can remember the big scandal in the papers little more than a year ago, one announcement from M&S and the journalists went crazy. When M&S first proposed to transfer all of their existing loyalty card/charge card holders balances into credit card balances, the rules were broken and many of the banking world were astounded by this proposal which would turn the world to debt. This was the first time any company had attempted such an evil deed. Journalists run copious articles centred around this moment. This would be the singular moment that all of the people living happily with their charge card would be plunged into a spiral of debt through this non-application credit card.

The difference between a charge card and a credit car being that while the charge card could only be used for purchases within M&S, the credit card would be able to be used throughout the world.

Many were trying to prevent M&S from carrying out this plan, none less than the banks, who were obviously now becoming competitors. The banks and economists could clearly see that if M&S carried off this plan, they would instantly by default have a captive market for their sparkly new ‘&more’ credit card and therefore instantly become a player in the lucrative market of charging high interest for people falling into a spiral of debt.

The ready M&S customer base who could be transferred was substantial, running into the millions. With most against it, M&S managed to push their way through, by giving existing customers the choice of whether to stay with the charge card or take a new credit card.

Within the later part of last year the majority of balances of existing charge card holders were transferred into new credit card accounts, making M&S instant big players in the game of debt & high interest rates. M&S were effectively cashing in on the loyalty of many of its existing customers. A year on and no-one who had their balance transferred seems to have complained and alongside those ready made customers came new people such as myself.

M&S during the last month have sealed the deal with HSBC and sold the credit card element of their banking empire to HSBC. The figure it was sold for is unknown, and so far HSBC have promised to change nothing in the terms and conditions previously laid out by M&S, how long it will stay like that no-one knows, but my guess is something will change over the next year or two, after all some of the features of the card are very similar to ones that HSBC abolished in their own credit cards little more than two years ago!!!.


Things you might need to know:

1.Interest Charges – Apparently you get ‘55 days interest free credit on purchases’. Now what this basically means is buy now pay later, same as all credit cards. The 55 days comes into play only if you always pay off your bill in full every month, and is only 55 days if you purchase something on the day after your last bill is calculated and pay your next bill on the exact due date, so basically there are 55 days between last day of items to be charged to a bill, and the due date of the next bill.

If you aren’t a person who pays the bill on time for the full amount then they do offer the 0% interest on transferred balances. Which is guaranteed to stay 0% for that period, 6 months following the date your account is opened an interest rate is charged, presently this is 15.9% and has stayed the same for the last 6 months.

2.Mastercard/Visa - The & More credit cards come in either Mastercard or Visa. The terms and conditions of both are exactly the same, and to be honest I really don’t know what differentiates one from the other, or if either has an advantage. I know that years gone Mastercards were more widely accepted Worldwide. Now I think its evened out and wherever Mastercard is accepted, so are Visas. But the choice is there for you to decide!


3.Applying – There is a choice available of how to apply, but the most obvious two options are online via www.marksandspencers.com or by picking up a form from inside one of their stores, there is a return point in all stores for the completed forms. The form is pretty standard, short and includes a clause for a credit check to be carried out. If you are in one of their stores and get stuck filling in the form there are staff on hand to assist. The forms are always located next to an internal post box where bills can be paid or applications posted.


4.Insurance: There are options to take out insurance for the loss of the credit card with Card Safe, a standard package available with all credit cards. In my view it is not worth taking out insurance at all. If someone fraudulently uses your credit card then you are actually automatically covered. Credit cards all work in the same way in that if you spot something rogue on your bill, call the company and tell them about it. In my experience the credit card company will take your word for it, although obviously not if you continually report things. The reason for this isn’t that the credit card companies are so sweet and kind to take your word for it, the reality is it is the company that the credit card has been used in that swallows the cost. For example M&S sell a top to someone using a stolen credit card. The owner of the credit card spots it on their bill, calls their credit card company. The credit card company give the money back to the card holder, and takes the ‘missing’ money back from M&S. So basically when people use your card fraudulently it is the shop they have brought something in that suffers!! But that is a whole other review!


5.Age: Of course, like all credit cards you need to be a minimum of 18 to apply.


6.In order to apply, you also need to be a UK resident.


7.Chip & Pin: I haven’t received mine as of yet, but new customers are issued with a pin number from the outset now. Existing customers still require signatures, but this will change to pin in the imminent future.


8.Credit Limit: The credit limit is set on an individual customer basis. Depending on your credit rating, age, spending etc. There seems to be no hard and fast rule as to what you are offered as your initial credit limit. My initial credit limit was set at £4500, where as my parents (who are much more reliable & have more money available) were offered £1500 initially! The starting credit limit, is exactly that the start, if you require a higher limit, ask and a judgement will be made. Similarly, if you feel the initial limit is uncomfortably high, contact M&S banking staff and they will cap it at a lower rate. The credit limit on anyone’s credit card can also be lowered or put up by M&S at anytime, but again a conversation with a member of staff can alter this either way.


9.Bills: Bills are issued monthly, pretty much on the same day every month give or take a day. Payments are then due approximately three weeks following issue (thus the 55 days interest free credit as mentioned earlier). On the bills are all of purchases are itemised, listed in date order, with a small description on the shop or purchase and the amount. After the final billed item is the summery box with present balance, amount available to spend (your credit limit – amount spent and billed), Minimum payment to be made and the payment due date.


10.Methods of payment: There are several methods of paying the bills, which include via direct debit, filling in the return slip and making the payment in ANY bank, in the post office, via telephone banking, in one of the stores post boxes, at an in store till point, by post or via the internet banking system. So lots of options on how to pay, and being able to pay at any bank really is a big bonus!

Well all of that information is useful, but there is one reason that I would openly promote an M&S credit card, and I’ve saved that reason till last….the real reason I adore the card is &More Points.

So what are & More Points?

Basically it’s a points means prizes type system, based on a want to encourage you to use your card as much as possible and make M&S maximum profit. But, this system has pretty substantial benefits for you. The points are awarded every time you spend any money on the credit card. The points are awarded at two levels, with more being awarded when money is spent in M&S using the card. For every pound spent in M&S, 1 &more point is awarded, this is halved for spending outside of M&S, so basically for every £2 spent you are awarded 1 point. 1 point is basically worth the equivalent of 1p, which doesn’t sound much until you start thinking about how much money that converts into when you add up all the pounds you spend. Four times a year, M&S convert the points into money and send out vouchers to all credit card holders who have accrued enough. The lowest denomination of voucher is £1, so Im sure everyone gets something. The vouchers are to be spent in an M&S store, but within the store can be put towards any item large or small.

To give you an idea of the benefit I have had by having a M&S card, Ill tell you about the vouchers I have received this year. But before I do, I should tell you that I am a good girl and pay the whole bill every month, if you don’t then obviously there is no benefit. I also made a conscious decision to pay for as much of my daily life as possible on credit card, purely with the idea that firstly I don’t have to pay immediately for anything I purchase, and secondly if I spend money through the credit card, then effectively I am being paid to spend the money I would already have spent. I decided to save all of the vouchers till I had enough to buy something I really wanted. And last week, there it was…My beautiful long black dress from The Autograph Collection at M&S. By the time I saw that, I had saved £110 worth of vouchers saved over about 9 months. So I cashed them all in on the dress and ended up paying just £60 for a dress that was £170. So there you have it, the reason I think M&S credit cards to me are worth more than the competitors. My only worry is that HSBC have now brought the credit card element of M&S, so I don’t know how long they will keep the points system going for, but in the meantime I’m out using my card for hopefully another £110 in 9months time… I don’t think that is bad, Do you?

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