GTE Offers Its Customers a New Charge Card Service : Credit: The firm is the latest blue chip company to enter the fray over the introduction of credit cards, this one with a 6% rate for a limited time.

GTE Corp. on Monday became the latest blue chip company to join the credit card war, offering a combination phone card and Mastercard with a dirt cheap, limited-time-only 6% annual interest rate.

The phone company, which does business in 40 states, said the card was designed to offer customers both a credit card and telephone calling card.

The card carries no annual fee and offers discounts on telephone calls, but the special interest rate only lasts until April 30, 1993.

After that, the card’s rate will be determined by the commercial banks’ prime lending rate, now 6%, plus 10.4%.

“The card helps fulfill our strategic objectives of providing enhanced consumer products and service whenever possible,” said Kent Foster, president of GTE Telephone Operations.

GTE shares gained 25 cents to close at $33.50 on the New York Stock Exchange.

In the last two months, General Motors Corp. and General Electric Co. launched their own Mastercards, hoping to match the success of American Telephone & Telegraph Co.’s Universal card.

AT&T;’s Universal card was launched in March, 1990, and by June of 1992 turned a profit--ahead of the company’s plan and analysts’ expectations. It now has 15 million cardholders.

The companies are trying to win away customers from banks, who charge as much as 19% interest on credit cards.

General Motors’ card gives a 5% credit on each dollar charged toward the purchase of a car. General Electric’s card gives rebates toward the purchase of GE products.

“These new cards have bells and whistles incentives attached, but in order to enjoy the benefits, consumers must do business with them,” said Robert Heady, publisher of BankRate Monitor, which tracks credit card interest rates.

GTE Mastercard also features no annual fees and a credit line limit of up to $7,500. It will offer cash advances through the Cirrus automated teller machine network.

GTE’s card gives 10% discount on all telephone calls made with the card.

The company said it will offer the card to its customers in the 29 states where it provides phone service. Next year, the company plans to offer the card in 11 additional states where it does business.

GTE said it will not seek credit card customers in non-GTE operating areas.

GTE is the nation’s largest regional telephone company and is based in Stamford, Conn. The credit card operation is based in Irving, Tex.