2 x MBNA questions

easyv

Hello...

Long time lurker, and first time poster so please be gentle. Both questions to do with MBNA and rate-jacking.

1) My partner has a large limit on his MBNA (£15,400) and he only had about £2k on it when we got "the letter" about putting the interest up (from 16.9% to 30%+) We 'opted out' and are in the process of paying off the remainder at £300ish pcm. My question is: is this account now "closed"? i.e. if he went for the Virgin 0% would it show that he had a live MBNA card, would the £13,400 show as available credit on his report etc

2) I have an MBNA platinum on a 0.9% exisiting customer deal which is about to run out in December. Are they likely to hit me with a massive interest rate when it's over, or go back to my 'pre-deal' rate of 16%? if they do charge me a high rate, have I lost my chance to 'opt out' by taking the 0% deal?

Thanks so much in advance and I hope my ramblings make sense

Moggles_2

easyv wrote: »

My partner has a large limit on his MBNA (£15,400) and he only had about £2k on it when we got "the letter" about putting the interest up (from 16.9% to 30%+) We 'opted out' and are in the process of paying off the remainder at £300ish pcm. My question is: is this account now "closed"? i.e. if he went for the Virgin 0% would it show that he had a live MBNA card, would the £13,400 show as available credit on his report etc.

Not advisable, IMO, until the balance is paid off. The account will then be marked "settled" on credit files, which shows he's made all the necessary payments and the card has been closed down.

There's no shortage of 0% BT cards he could apply for. To help you further, we would need to know which credit cards he has at the mo or has held recently.

easyv

Thanks for your feedback - the reason I asked is that in the past I have closed an MBNA card and had the balance transferred to a Virgin card, and I wondered if this may be the case.

The other cards he's got are:
2 x Barclay card (one 6.9% LOB and the other £700 limit and 12.9% APR)
1 x Egg with £6500 limit and no balance
1 x HSBC with £1500 limit and no balance

(the reason we are keeping the HSBC and Egg open is to wait and see what happens with my MBNA - and try and get exisiting customer offer in December)

Moggles_2

easyv wrote: »

The reason I asked is that in the past I have closed an MBNA card and had the balance transferred to a Virgin card and I wondered if this may be the case.

Yes, me too, but your partner's situation is slightly different. If I were him, I'd clear the balance first and wait until credit files are marked settled

The other cards he's got are: 2 x Barclaycard (one 6.9% LOB and the other £700 limit and 12.9% APR), 1 x Egg with £6500 limit and no balance, 1 x HSBC with £1500 limit and no balance.

Does he bank with NatWest or the Royal Bank of Scotland? A 0% for 15 months BT card is available to existing bank account customers at the mo.

If he's not eligible for the above, the Halifax Plus card is a straight forward, no-strings deal which is not linked to his other cards.
13 months at 0% is currently available to new customers from Halifax on balance transfers made in the first 90 days. There's a 3% BT fee.
The minimum monthly payment is just 1% of the balance shifted

http://www.halifax.co.uk/creditcards/pluscard136.asp

Moggles_2

easyv wrote: »

I have an MBNA platinum on a 0.9% existing customer deal which is about to run out in December. Are they likely to hit me with a massive interest rate when it's over ...?

More than likely.

If they do charge me a high rate, have I lost my chance to 'opt out' by taking the 0% deal?

Not necessarily, but if I were you, I wouldn't hang around to find out. Even at 16.9% APR, that's an expensive loan

Provided that you have a good credit history, I'd apply for a new 0% BT card. You've ample time between now and December to line up a good card

easyv

Thanks for your replies....really helpful.

The problem we have is that the balance on my MBNA is quite large (Approx £14k) so was trying to "keep" his large limit and hopefully transfer it over to the Virgin 0% for 16 months - it'll be hard to get a new 0% up to that amount.

If not, we'll just have to transfer as much as we can and put all efforts in paying MBNA off!

Moggles_2

easyv wrote: »

The problem we have is that the balance on my MBNA is quite large (approx £14k), so was trying to "keep" his large limit and hopefully transfer it over to the Virgin 0% for 16 months. It'll be hard to get a new 0% up to that amount. If not, we'll just have to transfer as much as we can and put all efforts in paying MBNA off!

Had your partner paid off his £2000 balance straight away, your plan would have been feasible. Having opted out, I think you would be pushing your luck, tbh.

If his/your credit files will take it, I'd apply for two new BT cards.
Do you have other credit cards besides MBNA Platinum?