mbna!! putting rates up

babyharry5

Just received notification from MBNA that they are putting my credit card interest rate up by 5% as of next month. Gave them a call and the 'helpful' operative has absolutely no idea why. Luckily I have just got enought to clear off ( even though it will leave mea bit short)
make sure you check your MBNA cards!
By the way all my payments are made each month - I make min direct debit and additional bank payments - no credit risk at all - never missed a payment.
Why would they do that? to force me to clear??

jonnyround

I have just been told my rate is going up 9% an increase of 37% when I rang I was basically told take it or leave. The guy on the phone had no idea why it was going up.
I think this is one for the Money press because this is scandalous when interest rates are so low.

babyharry5

I know!! the girl on the phone couldnt give a t*ss.
All well and good - but unfortunately the less customers, the less operatives are needed on the phones!
Are you in a position to clear?? it does say lower down on the letter, that if you contact them asap then they will leave interest rate the same but obviously you cannot use the card and when it is cleared they will closed the account.

CannyJock

babyharry5 wrote: »

Just received notification from MBNA that they are putting my credit card interest rate up by 5% as of next month. .... Why would they do that?

To make money. It's what they do. MBNA have been good in the past for repeat offers to customers, so I'd stick with the card, but clear any interest bearing balance on it and wait for an offer before using it again.

Why not look into 0% purchase cards or switch the balance to a 0% balance transfer card?

Moggles_2

Why would they do that?

Sorry, only MBNA knows the answer.

You say that clearing your statement balance will leave you a bit short. If you don't normally pay off the balance each month, you were already forking out quite a bit of interest unnecessarily. If this latest interest rate rise spurs you to tackle that, MBNA has done you a favour.

If you were to settle the statemented balance in full for two consecutive months, you'd have up to 50 days interest-free on all your purchases. Then MBNA's interest rate would be irrelevant

babyharry5

hi
yes they have done me a favour! one of those things that I never quite got round to doing - only had the interest bearing for last two months and was going to clear in next 6 months!
jsut feel sorry for all the people who are not in position to clear.
make sure if you are one of those , that you ring them to keep apr as it is and just clear and close.