MBNA 0% offer - What to do?

SaveMe2

I have recently received a mailing from MBNA regarding 0% interest until MARCH 07. I can transfer £13680 (95% of limit) to a current account for £75 capped charge (3%). Surely this is a good offer even if I put in a savings account for 8 months earning 3% it would give £200 profit.

Am I missing a trick here? Has anyone used this offer to good effect? I have £2000 of debt to pay off, and would keep enough to cover minimum payments but have effectively £10000 to play with for 8 months interest free.
I am due to remortgage soon and am aware of stoozing in saving accounts etc..

What would fellow members do/advise please?

YorkshireBoy

SaveMe2 wrote:

What would fellow members do...

Take it!!

...advise please?

Minimum payments (after the initial £80 first payment) will only be £5 per month - so your stooz pot will be a little larger than perhaps you first thought.

Depending on your other circumstances, you may have to 'come clean' about your stoozing and produce evidence of your stooz pot savings if there's a chance that you'll be declined the re-mortgage based on your 'used credit'. Having said that, £14.4K of 'available' credit may have impacted on the mortgage providers decision anyway.

Set up a minimum payment DD, and watch your first statement closely. If it doesn't say that the DD will be collected, then make a manual payment. MBNA *WILL* remove the 0% if you miss a payment, and that'd be £75 down the swanny!

Good luck.

SaveMe2

Thanks YorkshireBoy,

I am surprised that the repayments would be so low thought they were around 3% of balance usually?

As for the remortgage I haven't applied yet, so worth bearing in mind your comments, With offers like this around was thinking down the lines of a current account mortgage. Have a bit of research to do on this yet!

Debras_Angel

Hivsaveme2,

Why don't you try and get the fee wiaved. We didn't even ask and he waived it as we were not sure that we wanted it and had called to cancel!

Might be worth a try.

Debs

The_Boss

Has your MBNA card not been used for a while?

I'm just wondering the circumstances in which you were offered this. I spend a lot on my card each month and pay it off in full most of the time but have never been offered anything like this, whereas a few people from here have.

doingwhatican

I got offered this deal as well on my MBNA card. The card is used regularly so before I take them up on their offer I will have to arrange another credit card to use for our spending which is a bit of a pain as all the other cards I have were for 0% BT deals and are not used at all.

SaveMe2

Debras_Angel wrote:

Hivsaveme2,

Why don't you try and get the fee wiaved. We didn't even ask and he waived it as we were not sure that we wanted it and had called to cancel!

Might be worth a try.

Debs

Hi Debs, Interesting.. Worth a try, Was your card also MBNA? Wary of ringing to cancel it just in case they do!!

grumbler

The_Boss wrote:

Has your MBNA card not been used for a while?

I'm just wondering the circumstances in which you were offered this. I spend a lot on my card each month and pay it off in full most of the time but have never been offered anything like this, whereas a few people from here have.

I received the same cheques from MBNA today. I spend on my Conran card, but occasionally - less than £100 p.m. - and always pay in full. 0% offer was on my online banking page recently (disappeared now), but the 3% fee was uncapped.

Debras_Angel

SaveMe2 wrote:

Hi Debs, Interesting.. Worth a try, Was your card also MBNA? Wary of ringing to cancel it just in case they do!!

Yes it was an MBNA card and we were adamant that we wanted to cancel as I was wary they would still charge the fee but they were great, as I mentioned in another thread.

We got it through the post and it's one of the charity ones.

We did have an MBNA one for years that we hadn't used though.

Cheers

Debs

Debras_Angel

The_Boss wrote:

Has your MBNA card not been used for a while?

I'm just wondering the circumstances in which you were offered this. I spend a lot on my card each month and pay it off in full most of the time but have never been offered anything like this, whereas a few people from here have.

We do too and always pay our cards off. But we moved in March and have taken out a couple 0% cards to cover our spending on new furniture.

We've just been accepted today for the new GE Capital one as well.

So maybe we're turning into tarts.

Cheers

Debs

SaveMe2

The_Boss wrote:

Has your MBNA card not been used for a while?

I'm just wondering the circumstances in which you were offered this. I spend a lot on my card each month and pay it off in full most of the time but have never been offered anything like this, whereas a few people from here have.

Hi Boss, Had a mailing first in May then another yesterday, A standard mail with 5/6 cheques attached. I do not use the card at all now but have had it 10 years+ hence the large credit limit which has crept up from £500 (Without once requesting an increase!). Maybe these factors have put me on the 0% list? Previously mailings from MBNA have offered 4.9% and 1.9%, and this is the second time I have been offered 0%. Of all the cards I have had MBNA seem to offer the best deals however always charge for BT, usually 3% with a £75 cap.

How long have you had your card? I would suggest contacting them to see what BT rate they will offer you..