MBNA Low Fee 0% Balance Transfer Credit Card review
- 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
- 22 months
- 0% interest on money transfers
- 12 months
- Account fee
- £0
Our verdict
If you're looking to transfer existing card debt to a cheaper deal, you'll normally (but not always) have to pay a transfer fee – but this card's fee is cheaper than most.As one of the biggest-hitters in the balance transfer game, MBNA, along with the likes of Barclaycard and Virgin Money, provides a range of balance transfer cards to suit various situations.
While the card issuer's very longest 0% deal comes with a fairly painful balance transfer fee (especially if you want to transfer a larger sum), this card offers a reduced fee in return for a few months less at 0%. If the 22-month deal on offer here gives you enough time to clear your card debt, then you could opt to take advantage of the low transfer fee (divide your outstanding balance by 22 to see what you'd need to pay each month). Before you do, however, you should check out the selection of balance transfer cards currently available with no balance transfer fee.
Pros
- Customers report excellent customer service when dealing with MBNA Limited
- Almost 2 years of 0% interest to focus on reducing existing card debt
- A year of 0% interest on funds you transfer out from the card
- No annual fee
Cons
- Minimum annual income requirement of £14,000
- Relatively high money transfer fee
- A punishing fee of 5% on cash withdrawals (you should avoid using a credit card to withdraw cash in any case)
Details
Product overview
| Issuer | MBNA Limited |
| Network | Mastercard |
| Annual/monthly fees | £0 |
| Balance transfers | 0% for 22 months reverting to 24.94% |
| Balance transfer fee | 1.99% for 2 months reverting to 5% |
| Purchases | 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 | £20 cashback on balance or money transfers of £1K or more made within the first 60 days of opening. |
| Potential costs | 4.0 ★★★★★ |
| Doing its job | 4.5 ★★★★★ |
| Extras | 2.5 ★★★★★ |
| Overall Finder score | 4.0 ★★★★★ |
Eligibility
| 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 |
Fees
| 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 | 1.99% 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 |
The MBNA Low Fee 0% Balance Transfer 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?
MBNA Limited's card
Other popular balance transfer deals
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 losing your promotional interest rate as a result (as well as damaging your credit score and incurring the late payment fee of £12). 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 22 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 |
|---|---|---|---|
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
Can I withdraw cash using the MBNA Low Fee 0% Balance Transfer Credit Card?
Although it's possible, withdrawing cash from a credit card account is generally not a good idea, as "cash-like transactions" (such as withdrawing cash at an ATM, getting cashback at the till, spending at a casino or buying currency) often incur steep fees and/or higher rates of interest.
The cash advance fee on the MBNA Low Fee 0% Balance Transfer Credit Card is 5%.
The interest rate on this part of your balance will be 24.94% (chargeable from the day of the transaction – the card's usual "up to 56 days interest-free" grace period won't apply).
What should I do with my old credit card after transferring the balance to the MBNA Low Fee 0% Balance Transfer Credit Card?
Transferring a balance doesn't automatically close your old account. In most cases, you'll want to close the old account(s) straightaway, especially if they have an annual/monthly fee or if you might be tempted to use them in the future. There is an argument that you should keep the old account open to help your credit score. That's because doing so keeps your "credit utilisation ratio" lower (that's a measure of how much credit you're using compared to what's available to you) and helps the average age of your credit accounts. However, unless you're just about to apply for a new mortgage, it's probably fair to say that most people would prefer to have no more bank accounts open than was truly necessary.
How much does it cost to use the MBNA Low Fee 0% Balance Transfer Credit Card abroad?
Non-sterling transactions are subject to a 2.95% charge. For example, if you spend 200 euros (£171.23), it'll cost you around £5.05 in fees.
What is the minimum payment on the MBNA Low Fee 0% Balance Transfer Credit Card?
Each month, you must pay at least 2.5% of your balance at that point or £25.00 – whichever of the 2 figures is greater. So if you had, say, £980.00 outstanding, you'd pay £25.00, and if you had £4,000.00 outstanding, you'd pay £100.00.
Paying only the minimum required amount each month is generally not advisable as it makes it much harder to get debt-free before that introductory 0% period expires.
Can I transfer money from the MBNA Low Fee 0% Balance Transfer Credit Card to a bank account?
Yes. That's what's known as a "money transfer" (rather than a "balance transfer") in credit card jargon. You can arrange this from your online banking or using MBNA Limited's app. New customers will pay no interest on this part of their card's outstanding balance for up to 12 months. The fee for a money transfer is 4% for 12 months reverting to 5% (for transfers made in the first 12 months).
Finder credit card scores
Our experts score balance transfer cards to determine their value against similar products on the market. We look at a number of important factors, like the length of the balance transfer offer, the balance transfer fee, any restrictions to making a transfer, 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.
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