Am I correct? MBNA promotional offer 5.9% for life of transfer

arco_2

Hi, I am looking for some advice, I have been offered apromotional rate of 5.9% for money Transfers to my bank account from my existing MBNA creditcard if taken before the 31st of May.This rate is for the life ofthe money transfer. My balance is currently sitting at £2700 with a £3400 limitand I’m currently paying 29% p.a .On the 26th of May (pay day) I willhave enough in the bank to clear the £2700 but doing this would leave me unableto pay my other bills.Am I correct in thinking that it would make sense to paythe £2700 to clear the card then do a money transfer of the same amount backinto my bank account to get the promotional rate? Would there be enough timefrom the 26th to the 31st to do this.

It seems simple enough in my head (that what worries me) butthought I would try here for a second

Opinion.



Thanks

[Deleted User]

Yes, you can do that.

chattychappy

Yes it would make sense to do that.

I would only transfer back what you actually know you will need (plus a small buffer). 5.9% is still 5.9%. On £2700, that's roughly £13.50 a month!

What is the fee? My MT offers from MBNA have always involved a high fee, as much as 5%.

If some of those bills can be paid directly by CC, then you might be better off doing that. You'll pay standard rate interest, but you'll escape the fee. Very roughly your standard rate looks like 2%/month. So if your fee is 4% for an MT, then provided you pay off your purchases within 2 or 3 months you're quids in. Bear in mind that your payments will be applied to the purchase balance first and you'll have to be paying minimums anyway, so this is quite possible.

arco_2

Cheers guys, thought it made sense..i had two offers for money transfers, first one was 12 months @ 0% with a 4 % fee and the one I'm looking to do is 5.9% for life of transfer with no fee. I'm just a bit wary of the timing of it as it's a bank holiday at the end if the month.
Cheers