If you have existing credit card debt and you're looking to clear it quicker by minimising the amount you have to pay in interest and fees, this offer may appeal to you.
MBNA Ltd Long Balance Transfer Credit Card review
By Chris Lilly
- Representative example:
- Representative 24.9% APR variable. Based on assumed borrowing of £1,200. Rate of interest 24.94% p.a. (variable).
- 0% interest on balance transfers
- 34 months
- 0% interest on money transfers
- 9 months
- Account fee
- £0
Review
MBNA's longest balance transfer deal is all about that table-topping 0% period – so don't expect bells and whistles and bear in mind that it's only likely to be available to those with good excellent histories.
On the plus side, it's quick and easy check whether or not you're likely to be approved before you apply, by using MBNA's eligibility checker – which won't affect your credit score. If you're not eligible for this card, MBNA will show you which card's are still on the table.
Don't forget that a transfer fee applies (which could be painful for those transferring larger balances), but the good news is this is reduced for transfers made within a set introductory period. And finally, you should aim to clear your balance in full before the 0% period is over. At that point any outstanding balance will start to accrue interest at the card's standard rate.
Pros
- Customers report excellent customer service when dealing with MBNA
- Over two years of 0% interest to focus on reducing existing card debt
- Earn points on day-to-day spending
- No annual fee
Cons
- Applicants with low credit scores are unlikely to be eligible
- Don't forget that balance transfer fee! If cutting the interest on existing card debt is your main reason for considering this card, check out no-fee deals first
- 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 Ltd |
| Network | Visa |
| Annual/monthly fees | £0 |
| Balance transfers | 24.94% |
| Balance transfer fee | 2.99% |
| Purchases | 24.94% |
| Purchases interest-free period | Up to 56 days |
| Money transfers | 24.94 |
| Cash advances | 24.94% |
| 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. |
| Potential costs | 5.5Standard |
| Extras | 9.9Excellent |
| Overall Finder Score | 9.8Excellent |
Fees and charges
| Minimum monthly payment | Greater of: 2.5% of the underlying balance plus the month's interest and any applicable fees and charges; £25; or the outstanding balance. |
| Annual/monthly fees | £0 |
| Balance transfer fee | 2.99% |
| Money transfer fee | 4 |
| Foreign usage charge (EU) | 2.95% |
| Foreign usage charge (rest of world) | 2.95% |
| Cash advance fee | 5 |
| Late payment fee | 12 |
| Replacement card fee | £0 |
| Duplicate statement fee | £0 |
| Exceeding limit fee | £0 |
| Additional card fee | £0 |
| Dormancy fee | £0 |
Application requirements
| Minimum Age | 18 |
| Minimum income | £0 |
| Residency | Must hold a UK bank/building society account. Must hold permanent UK address for 3 years. |
| Availability | Available to new customers |
The MBNA Ltd Long Balance Transfer Credit Card is issued on the Visa network (used by a whopping 4.2 billion cards), so you'll be able to use it at more than 100 million merchant locations across more than 200 countries and territories.
How does it compare with other balance transfer deals?
Table: sorted by length of 0% balance transfer offer, promoted deals first
Finder Score for credit cards
To make comparing even easier we came up with the Finder Score. Costs, perks and suitability across 120+ cards are all weighted and scaled to produce a score out of 10. The higher the score the better the card – simple.
Read the full methodologyApproval 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 Defaqto.
Repayment options
You can make manual repayments through MBNA'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 34 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 Ltd Long 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 Ltd Long Balance Transfer Credit Card is 5%. For example, if you withdraw £150, you'll incur a rather painful fee of £7.50.
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 Ltd Long 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 Ltd Long Balance Transfer Credit Card abroad?
Non-sterling transactions are subject to a 2.95% charge (which is very standard). For example, if you spend 200 euros (£175.75), it'll cost you around £5.18 in fees.
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 is provided by Defaqto. In other cases, Finder has sourced data directly from providers.
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