Credit card change, opinions required

imaginey

My MBNA card is approaching the 9 months for the 0% SBT I did (30th Sept), so I'm making my move now. I have two other cards, Conran (also MBNA) which is my normal usage card for cashback, and an Egg card with no debt on it (unused since obtaining the Conran card). My plan was to just balance transfer straight onto the Egg card using the anniversary offer, but I was told I can't use the offer until January which, I presume, is the anniversary! Had that card for around 4 years, so I don't recall.

Anyway, I see my options as either paying the card off (the SBT money is just in a savings account anyway), or preferably obtaining a new card to do a BT. It seems Natwest/RBS/Lloyds TSB are appropriate with the Lloyds being most attractive as I have a few weeks after getting the card to use the 0% BT. Does this seem to be the best course of action? As I've been paying off the minimum each month, the balance on the MBNA is now lower than I'd like, would it be possible to balance transfer from that and also some of the debt from the Conran card at the same time without incurring fees?

Finally, I've been paying £5 a month off the MBNA card (website says this is all I need to pay off, so it's all I pay each month), but for all 3 candidates mentioned above, the minimum payment is the higher of 2%-2.5% or £5, which would mean a minimum payment on £5000 of £100-£125 per month. Is this correct? I notice that the same terms are down for the MBNA card too, so have I actually not been paying enough each month? No interest has ever shown up so far, but I've worried myself now.....

Thanks for any advice/opinion.

Ste.

YorkshireBoy

imaginey wrote:

Finally, I've been paying £5 a month off the MBNA card (website says this is all I need to pay off, so it's all I pay each month), but for all 3 candidates mentioned above, the minimum payment is the higher of 2%-2.5% or £5, which would mean a minimum payment on £5000 of £100-£125 per month. Is this correct? I notice that the same terms are down for the MBNA card too, so have I actually not been paying enough each month? No interest has ever shown up so far, but I've worried myself now.....

Read your MBNA T&C's (Summary Box) for minimum repayments again. Look for the word LESSER.

imaginey

YorkshireBoy wrote:

Read your MBNA T&C's (Summary Box) for minimum repayments again. Look for the word LESSER.

"2.25% of your balance (minimum £5) or charges for Payment Protection Cover plus interest and fees plus £5 or the balance, if this is less than £5."

I assumed it was the former seeing as the balance isn't less than £5 and I don't have PPC or anything. I suppose that the PPC charge + interest + fees in my case is £0 so I just have the + £5. Needed more caffeine in my system to get my head around that one I think

YorkshireBoy

imaginey wrote:

The lesser of "2.25% of your balance (minimum £5) or charges for Payment Protection Cover plus interest and fees plus £5 or the balance, if this is less than £5."

I assumed it was the former seeing as the balance isn't less than £5 and I don't have PPC or anything. I suppose that the PPC charge + interest + fees in my case is £0 so I just have the + £5. Needed more caffeine in my system to get my head around that one I think

Agree it's difficult to grasp, and has had to be explained dozens of times on this board so you're not alone. Good luck with your plan.

Clariman

(Reposting text directly rather than via website link)

As you have said, you have the option of either paying off the MBNA card from your savings (what we call your "stooz pot") or doing a Balance Transfer to a new card. You have suggested RBS/NatWest or Lloyds TSB. I don't know why you thought that Lloyds would be better than the others because the Lloyds card limits you to doing a BT within a specific time period.

Most cards now charge for Balance Transfers but this can still be very wothwhile if you get a decent credit limit, provided that there is a maximum limit on the BT fee. Take a look at the various credit card offers that are available - we have a table on the main part of this site which shows a list of available cards.

You commented on the high minimum payments that most cards request. Between 2 and 3% is absolutely the norm. It is MBNA (and other MBNA cards such as Abbey and Virgin) that are the exception in only charging £5 per month.