MBNA Money Transfer Con

abujamin

This may be an old chestnut, but this just caught me out. Did you know that if you take out a money transfer with your card (MBNA), you may get the balance interest free BUT you get charged interest IMMEDIATELY on any other card purchases. The interest free period between statement date and payment deadline no longer applies. You get charged daily interest on ALL purchases. It effectively means that you can't use your credit card for anything else if you have an outstanding money transfer balance. I have been told its in the T&C but although they make the basics obvious, that little trick is buried in the small print. Angry and feel deceived.

DullGreyGuy

abujamin said:

This may be an old chestnut, but this just caught me out. Did you know that if you take out a money transfer with your card (MBNA), you may get the balance interest free BUT you get charged interest IMMEDIATELY on any other card purchases. The interest free period between statement date and payment deadline no longer applies. You get charged daily interest on ALL purchases. It effectively means that you can't use your credit card for anything else if you have an outstanding money transfer balance. I have been told its in the T&C but although they make the basics obvious, that little trick is buried in the small print. Angry and feel deceived.

Thats how all credit cards work, to get an interest free period, other than promotional offers, you need to clear the balance in full each month.

You presumably didnt clear the balance in full because of the promotional rate on one balance and so the other balances will have had daily interest added. Similarly next month you will have the interest on the interest unless you speak to them and get them to waive it as a gesture of goodwill. You are much more likely to get that if you admit you made a mistake/were ignorant rather than trying to accuse them of conning you

TheSpectator

No con here. MSE advise against mixing spendin on balance transfer/money transfer cards - https://www.moneysavingexpert.com/credit-cards/money-transfers/

CliveOfIndia

Old news, I'm afraid.  That's how all credit cards work - well, with the exception (I think) of Barclaycard, which is unusual in that it does separate out spending and BTs.  Which is why the MSE advice has always been never to spend on a BT card.

It's not a con - had you read the T&Cs you would have seen how the interest is calculated.

fergie_

Its not all cards, but you do need to read the terms and conditions very carefully. For example Tesco did change it on some accounts and some (all round) cards allow the same interest free period for both balance transfers and spending.

If in doubt though, simply don't mix the 2.