transfering a balance of 3000 to mbna?

jamesy1986

Hi. Basically I'm looking to transfer a balance of £3500 to an MBNA card. I havent applied for it yet but I just want some idea of what it involves. I know you cant transfer Virgin balances but want to make sure no other cards are affected.

I have £2000 on a Nationwide credit card and £1000 on a Debenhams store card. Monthly fee is quite high and two bills to pay at different dates, I'd rather pay one fee a month.

I read that you cant transfer certain balances with to an MBNA card? Would that include Nationwide and Debenhams (Santander)?

Paying it in 16 months is no bother as its not THAT much of a debt, but its still a debt I want rid of without crippling fees. I figured there'll be a £86 fee to transfer the balance, thats fine.



Also, the card on the main website that I looked at was this:
MBNA. Promo Rate: 0% for 16 months Fee? 2.88% (min £3) Typical variable rate: 16.7% APR on balance transfers Required Income: N/A
Basically my question is, how much would I be paying per month to this card? It says 0% but surely there is a monthly fee like with all other credit cards? I'm paying £60 to Nationwide and about £40 to Santander, so £110 a month. Would it be a smaller monthly fee on this card?

SomeSaveSomeSpend

Apart from your 2.88% transfer fee, that should be you for the discounted period (in this case 16 months). So, you get to put your £3000 onto another card at an interest rate of 2.88% over the 15 months.
Normally, there are no more fees, apart from late payment fees etc.

How much would it cost per month? It depends on how quickly you want to have the debt cleared. I'd suggest getting rid of it in the 15 month interest free period so that you don't ramp that debt up any more - if you did elect to clear it in 15 months then it's £3000+2.88%=£3086.40 total to pay, divide by 15 months and that's is £205.76 a month for the next 15 months to get your self free

Some companies are a bit sticky about transferring a balance from themselves to themselves. So you might have to shop around for a card that is not backed by the same bank as your Debenhams card (if that is mbna, I don't know).

If you were only to pay the minimum payment to the card (£25 per month or 1% of the total balance), then you will never pay it off.

Be careful that you are actually applying for a card that does have a 0% interest on the value of your balance transfer.

jamesy1986

SomeSaveSomeSpend wrote: »

Apart from your 2.88% transfer fee, that should be you for the discounted period (in this case 16 months). So, you get to put your £3000 onto another card at an interest rate of 2.88% over the 15 months.
Normally, there are no more fees, apart from late payment fees etc.

How much would it cost per month? It depends on how quickly you want to have the debt cleared. I'd suggest getting rid of it in the 15 month interest free period so that you don't ramp that debt up any more - if you did elect to clear it in 15 months then it's £3000+2.88%=£3086.40 total to pay, divide by 15 months and that's is £205.76 a month for the next 15 months to get your self free

Some companies are a bit sticky about transferring a balance from themselves to themselves. So you might have to shop around for a card that is not backed by the same bank as your Debenhams card (if that is mbna, I don't know).

If you were only to pay the minimum payment to the card (£25 per month or 1% of the total balance), then you will never pay it off.

Be careful that you are actually applying for a card that does have a 0% interest on the value of your balance transfer.

Thanks. £205 a month is a bit too much for me at the minute but £150 would be within my means and it would clear a good £2250 of it which I'm more than happy with, move it on after that. Would depend on the month really since I'm paid per hour, if I've any spare money laying around from doing overtime I would put that into the card one month, then the next back to £150. But definitely seems like a much better option to clear the bulk of it at the very least. At the minute I'm paying £110ish and barely making a dent.

My two cards are owned by nationwide and santander, do they affect mbna?

bengalknights

Santander and Nationwide would have no effect on MBNA as none of there cards are issued by MBNA but by themselves so your transfer would be fine.

jamesy1986

Thats what I needed to hear mate, thanks. Going to get onto that now.