MBNA Platinum Credit Card money transfer

cherryduck

Okay so I just applied for this with a money transfer of £2k, I only wanted the £2k at 0% so I could consolidate my other debts and not pay any extra. It's gone through and says I've been approved with a credit limit of £3300, this isn't what I expected. Does this mean I'll get a £2k money transfer and then I'll have an extra £1300 on the card to pay off at interest?

guesswho2000

No, it means you'll have £2k on the card to repay, with the ability to borrow another £1,300.

It's the credit limit, you don't have to spend it! The £2k money transfer will, presumably, have a fee of around 4%, so you'll have £2,080 to repay - cut the card in half when it arrives and pay the bill off before the 0% expires, then you'll pay nothing more.

cherryduck

Oh good! Thanks for that! Panic over! Another quick question, how long does the money transfer take to happen? Do I need to receive and activate my card first?

thebritishbloke

cherryduck wrote: »

Oh good! Thanks for that! Panic over! Another quick question, how long does the money transfer take to happen? Do I need to receive and activate my card first?

I believe you do, I don't think it would take any longer than a few days after applying for the money transfer.

guesswho2000

cherryduck wrote: »

Oh good! Thanks for that! Panic over! Another quick question, how long does the money transfer take to happen? Do I need to receive and activate my card first?

If you asked for the txfer during your application, it'll probably be processed as soon as you're approved. It'll take a few days to hit the other card though, so make sure you don't end up with a missed payment if it's close to the due date.

bengal-stripe

guesswho2000 wrote: »

......so you'll have £2,080 to repay - cut the card in half when it arrives and pay the bill off before the 0% expires, then you'll pay nothing more.

Don't forget, you will have to pay the monthly minimum (which I believe will be £25) without fail and on time, otherwise MBNA might cancel the 0% deal.

Set up a DD, then that payment will happen automatically. Before the 0% rate expires, you pay off whatever balance is left.

cherryduck

Cheers everyone, yeah I set up a money transfer during the application process, it's going straight to my bank account so no need to worry about missing payments on other cards. I'm going to set up a DD of £111.12 a month, so equal payments every month.

bengal-stripe

cherryduck wrote: »

I'm going to set up a DD of £111.12 a month, so equal payments every month.

I believe MBNA will only do DD at either the minimum or the entire balance. If that is the case, set up a DD for the minimum and set up a Standing Order for the additional amount you want to pay.

Or even better, tranfer the additional amount into a Savings Account until the money is needed. That will give you some interest. (I know, the rates are low and it won't be a great deal of money you'll earn.)