Halifax Ipoints Credit Card

...my ultimate choice was the Halifax ipoints credit card. But why amongst the hundreds of potential credit cards out there did I choose this one? There were several reasons that influenced my choice:

- As a student living on a restricted research grant, I wouldn't be accepted for any credit card that required a minimum income level (such as American Express Blue).

- I pay off the balance every month, so looking for a low ...
...(at www.ipoints.co.uk/services/creditcard/) or by phoning Halifax on the number provided on this page. Back when I signed up, it was online application only. I seem to recall that this was a straightforward process - I completed the form on the website with my details and sent it to Halifax over the secure link provided, then waited. A short while afterwards, I had conformation of my acceptance and notification that a credit agreement was to be sent ... more

You can view credit cards in one of two ways: (1) they make modern life easier by removing the need to be forever taking out cash and carrying it around with you, or (2) they are instruments of evil that tempt us into purchases we otherwise wouldn't have made and help us rack up huge levels of debt, which the card companies then charge us painful amounts of money on. As the sort of smug person who always pays their credit card off in full every month (and has only once gone over my limit in 8 years of using plastic), I fall firmly into the first camp. I like having a credit card. I find it convenient, invaluable for online shopping and more secure than carrying a lot of cash with me wherever I go. They are also fantastic in emergencies - as I found out when my car broke down last summer!

However, 3 years ago I found myself in the position where I wanted to change my credit card. I had been with Barclaycard since I turned 18. Although I didn't use the card greatly, I had had frequent problems and poor service from Barclays, which I won't bore you with in great detail here. Suffice to say, I was fed up and looking around for a better deal. As you have probably guessed from the category, my ultimate choice was the Halifax ipoints credit card. But why amongst the hundreds of potential credit cards out there did I choose this one? There were several reasons that influenced my choice:

- As a student living on a restricted research grant, I wouldn't be accepted for any credit card that required a minimum income level (such as American Express Blue).

- I pay off the balance every month, so looking for a low or 0% APR (annual percentage rate, or what proportion of the debt you pay to the credit card company in charges) was irrelevant to me. Equally, I never spent huge amounts on any card, so I didn't need to look for a company that offered high credit limits.

- By not being dependent on the APR, this freed me to look for a card that gave me something back for using it. There are a wide variety of cards that offer such incentives these days, and without paying any charges, this effectively meant I would be paid for using the card on transactions I would have done anyway. This would therefore leave me a bit better off than I was with Barclaycard, who gave me nothing. (I was not a member of the Nectar point scheme at that time, as none of the major contributing members of the program had outlets near me - see www.nectar.com for details).

- If I was going to get something back, I would prefer that it was linked to loyalty schemes I was already a member of and paid out regularly, rather than an annual cashback as most cards seemed to offer. This would give me tangible results quicker!

The ipoints credit card fitted this bill very well. There were no restrictions on who could apply in regards to income level, it was a VISA card and therefore widely accepted, and the rewards would come in the form of ipoints: 100 for taking out and first using the card, and 1% of my spend (which works out as 1 ipoint per £10 spent on my card) added to my account on a monthly basis. For those of you unfamiliar with ipoints, they are an online currency that can be earned through actions such as shopping online, filling in surveys, clicking advertising links, and signing up for newsletters, which can then be redeemed for rewards. Currently, for example, you can get a pair of UCI cinema tickets for 150 ipoints, a £10 Amazon voucher for 250 ipoints or £25 of high street vouchers for 510 ipoints - see www.ipoints.co.uk. I have been a member of ipoints for a long time and the opportunity to top up my account for free on a monthly basis was too good to miss.

The APR on the card has fluctuated over the time I have held it, and currently stands at a typical rate of 17.9%, which is pretty hefty compared to many other cards out there (including Halifax's other offering of the One Card, which has a current rate of 12.9%). This makes this card quite expensive if you do not pay off your debts each month.

To apply for this particular credit card, you need first to be a member of the ipoints scheme; you can currently apply using either the link on the ipoints site (at www.ipoints.co.uk/services/creditcard/) or by phoning Halifax on the number provided on this page. Back when I signed up, it was online application only. I seem to recall that this was a straightforward process - I completed the form on the website with my details and sent it to Halifax over the secure link provided, then waited. A short while afterwards, I had conformation of my acceptance and notification that a credit agreement was to be sent out to me. You need to complete and return this paperwork before you can get your hands on your credit card and PIN (all new cards have the "chip and PIN" system for added security). As it was 3 years ago when I did all this, I'm afraid that I cannot recall exactly how long the entire process took, only that I was getting impatient for my card to arrive, which probably meant it took a few weeks!

So what has my experience with this credit card been like? Well, after 3 years I feel I am in a good position to comment fairly on both the good and bad aspects of this credit card.

**The Good**
The initial application process and linking my credit card to my ipoints account was easy and secure; I have never had any security related problems or issues with this system. My statements have arrived promptly and accurately every month, and if I have ever needed to phone customer services, the response has been far more efficient and polite than Barclaycard ever managed. Equally, the promised ipoints have turned up in my account (usually within 2 weeks of payment being processed, but often in less time) every month with no problems. And I have been able to get more free Amazon vouchers since I started using this credit card!

**The Bad**
I have experienced one problem with the processing of my payment, which occurred last May. On returning from holiday, I found that Halifax had sent my payment slip back to me, with a note saying that a cheque had not been enclosed. Now this was decidedly odd, as I am usually very careful with such matters - a quick look at the stubs in my chequebook soon revealed that a cheque had indeed been written to Halifax for the full amount. So what had happened to it? I rang my bank (Nationwide), who calmly took the cheque number, confirmed that it had indeed been cashed the previous week, and promised to send me proof of this transaction. I then rang Halifax, who politely denied every having had the cheque after keeping me on hold for a full 20 minutes. Four days later, the paperwork from Nationwide arrived: a photocopy of my cheque (clearly dated and made out to "Halifax PLC"), along with detailed proof that Halifax had cashed it. I sent the paperwork on to Halifax, who then took five weeks to sort out the mess, tried to charge me for not paying that month's bill, and never so much as apologised at any point.

On top of this, there have been a number of occasions where my ipoints credit card has been rejected by retailers despite there being more than enough credit to complete the transaction. This has mostly been online (Amazon in particular don't seem to like it), although it once happened in Tesco, which was rather embarrassing. I have never been able to get a reason for why this happens - and it never was a problem on my old Barclaycard.

**And The Ugly**
This refers to the design of the old ipoints card - it was a truly hideous thing with an apparently meaningless image of a rubber duck (!) on it. I got some really funny looks using that card! Fortunately, these are now being replaced with a new and far more stylish white design as Halifax change to the chip and PIN system.

Overall, this card has been pretty good, if less reliable than Barclaycard (though it pains me to say it). Yes, there have been problems, but you must remember these were spread out over 3 years of regular use. So do I recommend the Halifax ipoints credit card?

Yes, if:
- You pay off your balance in full every month. 17.9% is a high rate.
- You are an ipoints collector and want a painless way of topping up your account.
- You have a second credit/debit card for those occasions when the Halifax card gets spat out of the computer.

No, if:
- You have debt to clear on a credit card or only pay the minimum balance each month. Go for a card with a cheaper rate, or you will be paying more in charges than you earn in ipoints.
- You can get accepted for a card than offers a more competitive cashback rate (some American Express cards offer up to 2%).

www.ipoints.co.uk/services/creditcard/
www.halifax.co.uk

 

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