MBNA Money transfer

Kendall80

It would seem the new MBNA card is well set up for stoozing. 0% for 24months on money transfers with a 2.69% fee.


That averages to a 1.35% fee per year so if the money were put in say a 5% interest current account. You'd pocket at least 2.5% interest (low rate taxpayer). Thats a free 250 quid per year if you were fortunate enough to get a 10k limit.

pauljoecoe

doing just that. They gave me a £11500 credit limit.

Gollygumdrops

Hi I am somewhat puzzled as to why I have just been refused the MBNA card.
My situation is I earn £60K+, have no mortgage (house worth approx £500K). No credit cards outstanding, no loans (always bought cars etc with money I saved)No debts or CCJs ever! Almost 100K in savings. I thought this would be a good way of getting a cheap loan for some home improvements etc.
Can anyone shed light on why I may have been refused?

Gollygumdrops

Sorry forgot to say I was after £10,000 for 24 months.

SeduLOUs

Gollygumdrops wrote: »

Can anyone shed light on why I may have been refused?

You sound 'too' perfect. Lenders won't give you a credit card if they don't believe there's even a remote chance of making any money out of you.

Gollygumdrops

Thanks seduLOUs but surely they wont make any money off most people over 24 months?
Nowadays, what with Martin's constant reminders don't most people pay back in time so only 2.69% interest will be charged anyway?

SeduLOUs

Gollygumdrops wrote: »

Thanks seduLOUs but surely they wont make any money off most people over 24 months?

Correct for the sensible folk.

But many not-so-savvy people will use the card for purchases as well as the 0% balance transfer, possibly fail to meet minimum payments (and lose the 0% earlier), or leave the balance remaining at the end of the 24 months and spend months/years repaying it later on.

Gollygumdrops

So I suppose what I can take from this (as you can guess don't usually borrow money) is that the better you are at handling your money, the less likely anyone will give you a loan at a good rate!

Seems madness to me but I suppose it's like being loyal to a particular bank/organisation when they give new customers better deals!

Well, all I can say, so much for a Good Credit Score and I shan't be looking at MBNA again.:(

SeduLOUs

Well, lenders are in the business to make money.

They don't want to lend to someone who they have no chance of making money out of (and there have been several news stories in the past of 'excellent' customers having their cards closed unexpectedly).

On the other hand, they don't want seriously bad payers who they will have to fight tooth and nail to get any money out of.

So basically they want the ideal middle ground - the people who will keep a balance running, earn them some interest, and make their monthly repayments on time.

You could try getting a different credit card with a low APR and holding a balance on occasion to build up a real credit history rather than just a perfectly clean one. The minimal cost in interest might be worth it in the long run to allow you to take advantage of these stoozing opportunities. But at the end of the day it's a big game, and nobody knows precisely how to play it as the lenders keep their individual criteria under lock and key.

bsms1147

Gollygumdrops wrote: »

have no mortgage
No credit cards outstanding
no loans (always bought cars etc with money I saved)
No debts or CCJs ever!

Your credit file probably looks empty then, and for many lenders that's a massive negative.

Do you have anything on credit at the moment? Monthly credit card bills paid off in full each month, mobile phone contract, etc?

YorkshireBoy

Gollygumdrops wrote: »

Almost 100K in savings. I thought this would be a good way of getting a cheap loan for some home improvements etc.

What's your net return on these savings, specifically the £10K which you'll now be spending from savings? Must be pretty low, unless they're in the name of a BR/non-tax payer?