MBNA 1.9% intro offer

T

tolkarovers

Registered User
Messages
60
Hi,
Apologies if this is a stupid question or if I'm missing something, but MBNA have aan offer for only 1.9% introductory rate for balance transfers or cash for the first 6 months on a new account. Surely if I take up the offer, take 5k in cash, and lodge it into rabio @ 3% I should end up ahead even if I need to pay the min balance each month. What am I missing?
Thanks,
Tolka
 
Some credit card providers have 0% balance transfer offers. However with many of these the introductory rate only applies to balance transfers any any purchase or cash advance transactions while there is any of the balance outstanding attract full interest charges at the normal rate immediately. On that basis I doubt that your strategy would work but read the terms & conditions of any card to be sure of how any specific offers work.
 
Most cards have cash advance fees too - MBNA's cash advance fee on their gold card is 1.5% (to maximum of €31.74) - not sure how much you can take out with their cc cheques, but if there's no limit & you can write a chq for €5k and only pay the lower interest rate, seems like it could be possible.
 
You can withdraw your entire credit limit - whatever that is - on the MBNA credit card cheque. You will have to pay a minimum balance each month. This could be withdrawn from your a/c in Rabo if they set a high minimum balance. This sum is at their discretion.

Be careful not to use the card until all of the money borrowed + interest is repaid. You will therefore not have the use of your MBNA credit card for 6 months. This is the only drawback. If you have another credit card or you can do without the card for 6 months, then it is not a problem.

Marion
 
Financial insitutions must quite the APR on advertisements for credit so check this to be sure.
 
You must log in or register to reply here.
Back
Top