"Free" money from MBNA??

[frankor2]

Hi,
I opened a new credit card from MBNA. Got an 11k limit. They are now offering interest free money transfers to a current account for 10 month. So I transferred 10k into my current account with Rabo Direct, then invested this money into one of their funds. It's up 600 in the past month so I'll let it run for another couple of weeks and then cash out. I can do what I like with this 10k once it's paid back by January 2011. There is no interest to pay on the 10k until January but by then it'll be paid back. I do need to make a minimum payment of €100 per month until Jan......anyone else do this??

 

[jhegarty]

Don't forget your investments may go up as well as down.

 

[frankor2]

I know that they can go up and down but I thought it was worth a try.....!
The gf is putting pressure on me now to sell the fund investment and pay the 10k back but she is risk adverse and I on the other hand....

 

[Berni]

Just make sure not to use the card for any purchases. MBNA operate a negative payment heirarchy, which means they take any payments off your least expensive debt first.
So if you were to spend €1000 on the card, any payments you make would be put against your "free" transfer, and that €1000 will be sitting there racking up 15% interest until the entire €10K has been paid back first.

 

[lightswitch]

Nice tip Berni, the things these people put in the small print huh, would never have thought of that.

 

[hope4711]

In fairness to MBNA they warned me about that on the phone when I availed of an interest free money transfer which I thought was fairly customer friendly.

 

[donee]

behind every great man is an even greater WOMAN, listen to her!