Crazy MBNA offer

The_Tax_Mans_Cash_Machine
The_Tax_Mans_Cash_Machine Posts: 122 Forumite
in Stoozing: free cash from credit cards
I got some of those credit card cheques that I usually hate, but the offer is mad. 0.00% APR until June 07 - thats nearly 10 months!

You can get up to 95% of your balance, there is a 3% charge (max £75).


What do you think I'm going to do with it:D
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Comments

  • M_Thomson
    M_Thomson Posts: 1,596 Forumite
    First Anniversary
    The_Tax_Mans_Cash_Machine wrote:
    I got some of those credit card cheques that I usually hate, but the offer is mad. 0.00% APR until June 07 - thats nearly 10 months!

    You can get up to 95% of your balance, there is a 3% charge (max £75).


    What do you think I'm going to do with it:D

    Why is it crazy? I think that is a really good offer. I wish I had it! Put it in a savings account. The minimum payment with MBNA is only £5 when you have an 0% deal.
  • The_Tax_Mans_Cash_Machine
    The_Tax_Mans_Cash_Machine Posts: 122 Forumite
    M_Thomson wrote:
    Why is it crazy? I think that is a really good offer. I wish I had it! Put it in a savings account. The minimum payment with MBNA is only £5 when you have an 0% deal.

    Thats what I mean - they must be crazy. I'm going to raise my credit limit to £20K, then take 95% of it. That'll cost me £75.

    Even if I just stick it in the bank at 5% for the 9 months it's almost £400 for free.

    What I'm actually going to do is buy some shares & make even more money from it:D
  • joolz43
    joolz43 Posts: 126 Forumite
    Probably they are trying to entice you in, so you can become one of their 'friends'. People they ring daily, several times often, asking for money.

    Seriously, if this suits you great, if there is any chance you will end up with MBNA as a creditor, then DON'T do it! :)
    Julie

    Proud to have dealt with my debts
    Debt July 2006 circa £55K
    Now Debt Free!!!! :j
  • A_Nice_Englishman
    A_Nice_Englishman Posts: 2,301 Forumite
    First Anniversary First Post Mortgage-free Glee!
    The_Tax_Mans_Cash_Machine wrote:
    What I'm actually going to do is buy some shares & make even more money from it:D

    Could you let us into the secret of your 'guaranteed to make money' shares?
  • M_Thomson
    M_Thomson Posts: 1,596 Forumite
    First Anniversary
    A_Nice_Englishman wrote:
    Could you let us into the secret of your 'guaranteed to make money' shares?

    Agreed, I would just put the money in a cash ISA or a high interest savings account. What if the shares don't make enough money to cover what you owe?
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Name Dropper First Post First Anniversary
    M_Thomson wrote:
    What if the shares don't make enough money to cover what you owe?
    Since the thread is already on the DFW board, it'll save starting a new one and having to explain where it all went wrong! :D
  • cryptokit
    cryptokit Posts: 21 Forumite
    OK,

    he knows by putting the money in a cash isa or whatever, he can get x% (lets say 6).

    So he can calculate now what that would be - indeed actually set it up to do it.

    Mean time, assuming he has some savings or similar, he can buy £400 of shares in whatever he wants.

    Now assuming the worst happens, at the end of the day he will have lost nothing, because the £400 he "lost" will be replaced in the account by the £400 in the ISA.

    If it makes more, he can "pay back" the 400 into his savings, and any extra is a bonus.

    At least thats what I assume is the plan!
  • Gorgeous_George
    Gorgeous_George Posts: 7,964 Forumite
    First Anniversary Combo Breaker
    I'd like an offer like that. I'd stick the money in my mortgage account at 5.5%, effevtively tax free. Over £700 (exc repayments) for free.

    However, if it looks too good to be true,     - check the small print.


    :)

    GG
    There are 10 types of people in this world. Those who understand binary and those that don't.
  • M_Thomson
    M_Thomson Posts: 1,596 Forumite
    First Anniversary
    cryptokit wrote:
    OK,

    he knows by putting the money in a cash isa or whatever, he can get x% (lets say 6).

    So he can calculate now what that would be - indeed actually set it up to do it.

    Mean time, assuming he has some savings or similar, he can buy £400 of shares in whatever he wants.

    Now assuming the worst happens, at the end of the day he will have lost nothing, because the £400 he "lost" will be replaced in the account by the £400 in the ISA.

    If it makes more, he can "pay back" the 400 into his savings, and any extra is a bonus.

    At least thats what I assume is the plan!

    I don't get what you mean. First of all, he is saying he wants to increase his limit to 20K! Hopefully he won't put that all in shares. Second of all, the £400 you propose putting into shares. If you lost everything you would be £400 down. So why are you saying it will be replaced by what is in his ISA?
  • A_Nice_Englishman
    A_Nice_Englishman Posts: 2,301 Forumite
    First Anniversary First Post Mortgage-free Glee!
    Don't forget the share dealing costs. £10 to buy and £10 to sell (which is cheap) is 5% of £400 so the shares would have to increase in price by that much just to break even.
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