Marks & Spencer Chargecard

...budget ie: credit needed now! Marks and Spencers seemed the best option. I still have the suits and wear them now so I can’t complain about the clothes. So although I know all of the scare stories about storecards and the interest rates I still applied for one because I had no other choice.


** What was the application process like? **

I applied for my card in Marks & Spencers Bournemouth on the 22nd March. ...
...discount on personal loans via Marks and Spencer Financial Services, Card Safe Protection and Payment Protection. None of these are really extras as these things are all available from other High Street Retailers. I also manage to pick up a free magazine, which normally sells for £2 whenever I show my card at the local M&S foodhall.


** How to pay **

Minimum balance or the whole balance is payable by direct debit ... more

The title more stupid (M&S) relates to me and definitely not this company.

You may have read in my recent financial ops that I work for a High Street Bank. I also have the letters Cert.CIB after my name (Banking Exams). Yet none of this stops me falling for the usual old talk and high interest rates!

I have many storecards but although the concept itself is expensive and a bit of a con, the M&S card is one of the better ones on the market. The thing is storecards just can't compete with the better offers that are available via the credit card sector.

I am writing about the M&S Chargecard and not the Budgetcard, which they also offer. With the budget card the customer promises to pay a certain amount each month regardless of the amount outstanding and they in turn get a credit limit. The chargecard has a credit limit too but as the balance reduces the monthly payment does too. This seemed a much better option for me, as I had low available monthly income and only really wanted to purchase some "one off" items.

** Why Did I buy? **

I started my new job about eight months ago and previously I had been given a uniform to wear in the branch. I needed to buy some suits and for my budget ie: credit needed now! Marks and Spencers seemed the best option. I still have the suits and wear them now so I can’t complain about the clothes. So although I know all of the scare stories about storecards and the interest rates I still applied for one because I had no other choice.

** What was the application process like? **

I applied for my card in Marks & Spencers Bournemouth on the 22nd March. Knowing what I wanted (credit and credit NOW!) I went to the customer services desk were I was ignored for a while. I filled in the application form and handed over my two forms of id (us bank clerks are prepared!) The assistant then phoned my application details through and I was told I was accepted. I mentioned that I was looking to make a large purchase that day and the sales lady told me to bring my purchases back to her desk as opposed to the normal pay desk and that she would process the transaction onto my card – this was nice. My immediate credit limit was £500 and I spent £230 on my suits, overall I was happy, as my goal had been achieved.

** When did the card / bill arrive **

My card had arrived by the time I got back to London, so within 14 days. I then had to take my card and some identification to my local store to have the card validated. This was an easy enough process and a nice safeguard to see. The first bill was dated 22 April and my first payment of £7 had to be made by the 14 May 2001. Standard charge card terms really. To their credit the bills are easy to read and are in the M&S Brand colours of Green and White. One thing that does bug me is the mail shots / leaflets that they also send with the bill – but hey all financial institutions do that don’t they?

** Interest Rates **

This has remained the same price during the term of my borrowing and is 1.45% monthly that equates to 18.9% per annum. I now have a balance of £405.59 on my account interest for the month was charged at £5.94 with the Payment Protection being £2.70 for the month. The interest rate isn’t much different from my own employer’s credit card and the credit card repayment protector is actually quite a bit cheaper (oops!) at 67p per £100 outstanding on the bill. Although this is a high rate compared to credit cards it is still cheaper than many other storecards (I know as I have many!)

** Extras **

There aren’t that many perks to being an M&S storecard holder. My ‘Welcome’ letter advised the usual store/credit card statements: No interest if balance repaid in full, Up to 55 days interest free credit, no annual fee and low interest rate 18.9% (which note hasn’t changed despite the recent economy) The extra perks quoted to me were: Commission Free Currency delivered free to my home, 1% discount on personal loans via Marks and Spencer Financial Services, Card Safe Protection and Payment Protection. None of these are really extras as these things are all available from other High Street Retailers. I also manage to pick up a free magazine, which normally sells for £2 whenever I show my card at the local M&S foodhall.

** How to pay **

Minimum balance or the whole balance is payable by direct debit to your bank account. Alternatively you can await the bill and pay it using a bank giro credit, phone, Internet or TV banking. If you prefer a cheque can be sent in the post. I prefer to leave the direct debit option as I can pay off as little or as much as I like by using the other options. They give no incentive for quick payment or full payment like some cards / bill companies do.

** Overall Recommendation **

Whilst not dissatisfied with the card I know that I am not borrowing the cheapest way and I am unlikely to take up any other offers from M&S Financial Services, despite their frequent mailings. It is a handy means of payment when in their stores and I have no complaints about the way they have handled my account. I wouldn’t talk someone into getting this card but then I wouldn’t talk someone out of it either. Does that sound non-committal?

More details:

Marks and Spencer Financial Services
PO Box 192
Chester
CH99 9PT

General Enquiries : 01244 681 681

 

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