Saga launches one of the fairest credit cards available, which could save cardholders on average ₤343 over 2 yearsMonday 2 June 2008
Saga launches one of the fairest credit cards available, which could save cardholders on average ₤343 over 2 years
- After interest and fees the most expensive debt is cleared first
- No Foreign Currency charge for transactions within Visa Europe
- 0% on balance transfers and purchases for first six months
Saga Personal Finance has today officially launched the Saga Platinum Visa Card, which it believes offers a fairer deal to customers whether they spend or borrow. Re-payments to the card are ordered fairly, so after interest and fees, the most expensive debt is cleared first1. This is unlike most credit cards available in the UK †. The card also boasts no foreign currency charges for transactions in Visa Europe2, and 0% on balance transfers and new purchases for the first six months3.
The fair order of payments ensures that the interest charged to the Saga customer is lower when compared to other credit cards in the market that pay off amounts that are attracting the lowest interest rates first †
The following example shows how much could be saved on the Saga Platinum Card when, in one year, a customer makes a one off balance transfer of £2,000, spends 1,000 a month on their card in purchases, and withdraws £350 in cash a month:
If a customer repays at a rate of £850 a month on their Saga Platinum Card they would pay £1,265.33 in interest over the course of 2 years and have paid back the interest bearing balance.
If the customer made the same repayments of £850 with the order of payment of other UK cards surveyed † and the same interest rates as the Saga Platinum card, then they would pay £1,608.87 in interest over the course of the same period.
The fair order of payment on the Saga Platinum Card means that the customer would save £343.54 in interest.
The Saga Platinum card also offers no Foreign Currency charges for transactions within Visa Europe2. This includes all EU countries as well as some non-members, such as Norway and Turkey, so customers really can make the most of their money when shopping overseas. For other countries Saga only passes on a 1% charge from Visa for processing these transactions.
Andrew Goodsell, Chief Executive of Saga Group Ltd, commented: "This is another product from Saga which puts the customer's needs first. Not only does it offer 0% Foreign Currency charges when using the card within Visa Europe2, but also offers a fair order of payments1, and 0% Balance Transfers and Purchases for the first 6 months3."
To apply for the Saga Platinum card customers should call 0800 015 5428 or visit saga.co.uk/creditcard
* The Saga Platinum card has a fair order of payments as detailed below and has no foreign currency charges for transactions within Visa Europe 2
1 Payments received will be deducted from the outstanding balance on the account in the following order:
* fees from previous statements;
* Cash Advances (including cash from a Cash Machine) from previous statements; and
* purchases from previous statements.
The remainder (if any) will be applied to transactions on the current Statement in the following order:
* Cash Advances;
* purchases and Balance Transfers; and,
* any other promotional offers.
2 List of countries included in the Visa Europe Region
Andorra, France, Italy, Portugal, Austria, Germany, Latvia, Romania, Belgium, Gibraltar, Liechtenstein, Slovakia, Faroe Islands, Monaco, San Marino, Bulgaria, Greece, Lithuania, Slovenia, Cyprus, Greenland, Luxembourg, Spain, Czech Republic, Hungary, Malta, Sweden, Denmark, Iceland, Netherlands, Switzerland, Estonia, Republic of Ireland, Norway, Turkey, Finland, Israel & Poland.
3 Introductory Rate is charged for the first six months from the date the Account is opened. At the end of the six months the Introductory Rate reverts back to the Ongoing Interest Rate applicable to the product at that time. There is a 2% Balance Transfer Handling fee on the full Balance Transfer amount.
† Info correct as of 22.04.08. Source: Moneyfacts. The order of payments has been compared against the following credit cards; BarclayCard, RBS Platinum, NatWest Platinum, Lloyds TSB Airmiles Duo, MINT, Virgin, ,Capital One, MBNA, HSBC, Egg. None of these issuers offer a fair order of payment comparable to the Saga Platinum credit card.
For further press information please contact the Saga Press Office on: 01303 771529.
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