BT launches a customer credit card and discount scheme

Branching out into the murky world of personal finance, BT has launched the new BT Credit Card for BT customers.

In association with MBNA, the card offers a loyalty-points type reward scheme that could see reductions from your BT bill.

With the new flexible-friend offering, your credit card and BT telephone and broadband accounts are linked so that every time the card is used for a retail purchase, the cardholder will be rewarded with money off their BT bill automatically.

For the first £250 of spend on the card each month, customers will earn one pence for every two pounds of purchases, with no minimum spend required.

Above £250 of card purchases per month, customers will earn double the discount on their BT bill: one penny for every additional pound spent up to a total of £75 a year.

So, if you spent a grand a month on the card, that would earn you just under £9 off your bill.

This could be a way to save money on your phone bill if you're the kind of clever consumer who can remember to pay on a certain card and wipe the debt off before the interest kicks in – anyone who forgets will be looking at standard interest rates of 16.9% APR, not pretty.

Applications for the card can be made on BT's website.