If you're looking for a credit card to help spread the cost of an upcoming expenditure, but you already carry a balance, this "matched" card may be one of the most promising around.
MBNA 0% Transfer and Purchase Credit Card review
By Chris Lilly
- Representative example:
- When you spend £1,200 at a purchase rate of 24.94% (variable) p.a., your representative rate is 24.9% APR (variable).
- 0% interest on balance transfers
- 21 months
- 0% interest on purchases
- 21 months
- 0% interest on money transfers
- 12 months
Our verdict
This dual-purpose card offers lengthy 0% deals on both purchases and balance transfers made in the first 60 days.MBNA cards are all about the table-topping longest 0% periods, and this card's no exception – battling it out with the likes of Barclaycard and Santander for the best "matched" credit card title. Because these cards are all about minimising what you pay in interest, there aren't any rewards/perks to be had – which is fair enough really, since those programmes usually come at a cost.
If you only plan to take advantage of one of the 0% introductory periods (purchases or balance transfers), however, then there are longer 0% offers out there on more specialised cards – from MBNA and others. Specifically, if you're after a long balance transfer deal, you should start by looking at no-fee deals.
As with most balance transfer deals, there are a few important Dos and Don'ts to bear in mind.
Do work out how much you need to pay off each month to get debt-free before the end of the 0% period (just divide your balance by the number of months at 0%).
Don't use your new card for cash advances (withdrawing cash from an ATM or getting cashback at a merchant), since there's a fairly punishing 5% (min. £0) fee for the privilege. If you need cash, it's cheaper to set-up a money transfer from the card to your current account – you can do this in the app. If you transfer money from the card within the first 60 days of having it, you'll benefit from up to 12 months of 0% interest on that part of your balance too.
Pros
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Balance transfers, money transfers (that's when you transfer funds from the card to another account) and purchases can all be interest-free with this deal.
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Despite being part of the same banking group as Halifax and Lloyds, balance transfers from these banks are allowed.
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You can do a lot in the very respectable mobile app – from freezing and unfreezing cards to arranging transfers.
Cons
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Looking for perks and rewards? Sorry – MBNA's all about making savings.
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Balance transfers and money transfers are both subject to an initial fee (see table above).
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After the first 60 days, any balance transfers, money transfers or purchases you make will be subject to interest.
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Cash advances will incur a whopping 5% (min. £0) fee.
Details
Product overview
| Issuer | MBNA Limited |
| Network | Mastercard |
| Annual/monthly fees | £0 |
| Balance transfers | 0% for 21 months reverting to 24.94% |
| Balance transfer fee | 3.49% for 2 months reverting to 5% |
| Purchases | 0% for 21 months reverting to 24.94% |
| Purchases interest-free period | Up to 56 days |
| Money transfers | 0% for 12 months reverting to 24.94% |
| Cash advances | 24.94% |
| Minimum credit limit | £0 |
| Maximum credit limit | Subject to status |
| Additional cards available | 3 |
| Additional Rewards Info | Earn up to 15% cashback on purchases through Smart Rewards at popular retailers. |
| Introductory Rewards | Introductory 0% purchase offer only applies to purchases made within 60 days of opening. |
| Potential costs | 3.5 ★★★★★ |
| Doing its job | 4.0 ★★★★★ |
| Extras | 5.0 ★★★★★ |
| Overall Finder score | 3.5 ★★★★★ |
What are the fees and charges for the MBNA Transfer and Purchase Card?
| Minimum monthly payment | 2.5% or £25 (whichever is greater) or the total of any interest, default fees and charges plus 1% of the outstanding balance plus any arrears. |
| Annual/monthly fees | £0 |
| Balance transfer fee | 3.49% for 2 months reverting to 5% |
| Money transfer fee | 4% for 12 months reverting to 5% |
| Foreign usage charge (EU) | 2.95% |
| Foreign usage charge (rest of world) | 2.95% |
| Cash advance fee | 5% (min. £0) |
| Late payment fee | £12 |
| Replacement card fee | £0 |
| Duplicate statement fee | £0 |
| Exceeding limit fee | £0 |
| Additional card fee | £0 |
| Dormancy fee | £0 |
What are the application requirements for the MBNA Transfer and Purchase Card?
| Minimum Age | 18 |
| Minimum income | £14,000 |
| Residency | Must hold a UK bank/building society account. Must hold permanent UK address for 3 years. |
| Availability | Available to new customers |
The MBNA 0% Transfer and Purchase Credit Card is issued on the Mastercard network so it's accepted at more than 50 million merchant locations across more than 210 countries and territories.
How does it compare with other matched 0% deals?
Table: sorted by length of 0% offer
Approval for any credit card depends on your status. The representative APRs shown represent the interest rate offered to most successful applicants. Depending on your personal circumstances, the APR you're offered may be higher, or you may not be offered credit at all. Fees and rates are subject to change without notice. It's always wise to check the terms of any deal before you borrow. Most of the data in Finder's comparison tables is provided by Moneyfacts.
Repayment options
You can make manual repayments through MBNA Limited's app by logging in to your online banking or over the phone (0345 606 2062). Alternatively, you may wish to set up a direct debit.
A direct debit protects you from forgetting to make a repayment and either damaging your credit score, getting hit with a penalty fee (£12) or losing any promotional rates as a result. You could use a fixed-amount direct debit to ensure you've cleared your debt before the 0% period expires – simply divide your outstanding balance by 21 to see what you'll need to pay each month (this assumes you don't use the card for additional spending).
You can arrange a direct debit for repayments when you apply for the credit card. The table below shows the options available.
Choose from the following direct debit options for your monthly repayments:
| Minimum amount | Fixed amount | Fixed percentage | Full amount |
|---|---|---|---|
The bottom line
With a double-barrelled 0% interest period on both balance transfers and purchases made in the first 60 days, the MBNA 0% credit card could be a good option for those who have a balance they need to move, while also planning large upcoming expenses.
You’ll then have 18 months of no interest in which to pay off your balance, which could offer much-needed breathing room, provided you make sure to transfer your balance, or make your large purchase, within the allotted 60 days.
While there’s cards with longer 0% balance transfer periods available, the bonus 0% on purchases could be a decisive sweetener for those who need it.
How to apply
If you’ve compared cards and want to apply, completing the secure online application form takes about 15 minutes. Before you apply, MBNA requires you to use its “clever Check” eligibility tool, to see which cards you’d stand a strong chance of being approved for. This part of the process involves a “soft” credit check, and won’t hurt your credit score at all. If you then do then opt to apply for a card, MBNA will run a full, “hard” credit search, which has a small (but usually short-lived) negative effect on your credit score.
Frequently asked questions
How long does an MBNA balance transfer take?
If you're applying for the card today, you can request a transfer in the application process and MBNA states it'll go through within ten days. If you already have your card, you can arrange a transfer through your internet banking or in the app, and MBNA states it'll take one day to go through.
Any institutions that I can't transfer a balance to MBNA from?
Just MBNA. So even if you have an outstanding balance on a card held by another arm of the Lloyds group (Halifax, Lloyds, Bank of Scotland), you're fine.
How long does an MBNA money transfer take?
It's the same as a balance transfer: up to ten days if you're just applying, or if you already have the card, one day.
How quickly can I ask MBNA for a credit limit increase?
After six months. From then on, you can ask for further increases every six months. Any credit limit increases are at the discretion of MBNA, and you'll need to have used your card responsibly since you're had it in order for your request to be granted. That means having stayed within your current limit and having made all repayments on time.
Do I need to tell MBNA if I'm going to use the 0% Transfer and Purchase Credit Card overseas?
No, this is no longer necessary. Don't forget that if you do use your MBNA card abroad, a currency conversion fee of 2.95% will apply. MBNA cards tend to be a decent bet for balance transfer or purchase deals, but less so for travelling – you may wish to consider a dedicated card for that.
Can I choose my own PIN for the MBNA 0% Transfer and Purchase Credit Card?
You'll get issued one randomly by MBNA, but if you want to change it you can go to any cash machine attached to a high-street bank, select "PIN services" and then "Change PIN".
Finder credit card scores
★★★★★ — Excellent
★★★★★ — Good
★★★★★ — Average
★★★★★ — Subpar
★★★★★ — Poor
Our experts score matched/balanced credit cards to determine their value against similar products on the market. We look at a number of important factors, like the length of the introductory offer, balance transfer fees, any restrictions to the offer, plus the potential costs involved with running the card both in the short and longer term.
You can read more about our scoring criteria on our credit card methodology page.
We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you. Most of the data in Finder's comparison tables has the source: Moneyfacts Group PLC. In other cases, Finder has sourced data directly from providers.
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