MBNA 'Rate for Life' 5.9% with 1.5% fee - Question

bubbaspaarx

My maths isn't brilliant, but could you transfer the full credit allowance into your own account then take out a Barclaycard '0% for 20 months on balance transfers' card and payback the amount that was transferred into your current account and save yourself the 5.9%??
Obviously there will be transfer fees but these would be insignificant to the 5.9% for the life of the unpaid balance.

Tixy

What do you want to achieve? to borrow some money off a credit card with nothing on it? how long do you want to borrow it for?

The fee for the second transfer would be 3.2% - if you can pay back the money within 6months then it would be cheaper to stick with the MBNA card. If you can pay it back within say 10-20months then it should work out cheaper to do a second transfer to barclaycard.

If it will take you longer than 20months to pay back then it depends on how quickly you can pay it back, what balance would remain after 20months, what apr the barclaycard reverted to, whether you could do a second transfer (and for what fee and APR).

HappyMJ

You've lost me. What are paying off? If the rate on your CC or loan is higher than about 6.9% and/or you want to be lazy then the mbna offer is fine. If you can pay off the outstanding debt in 20 months then take the barclaycard offer or if you want to get a new card in 20 months then take the barclaycard offer and hope that a good offer is available then.

If you are putting it into your current account then what's it for? If a cheap source of funding for a big purchase then fine but if it's to invest in savings products then it's not worth doing any more.

bubbaspaarx

Hi there,
I guess I wasn't particularly clear on what i want to do.
I would use the rate for life card as they offer a cash sum into my bank account (for a used car purchase) and then the Barclay card to pay off the MBNA card. I guess I just wanted to know if this would in fact be cheaper as the sum I wish to borrow could be paid off within the 20 months offered on the Barclay card.

Many thanks for your input so far.