MBNA launches new Rate for Life Credit Card
MBNA has reduced the money transfer fee on its popular Rate for Life Credit Card from 4 percent to 1.5 percent, offering even greater value to customers successfully applying for the card.
The new credit card offers a low promotional rate of 5.9 percent on balance and money transfers made in the first 60 days until the transferred amounts are paid off, and now comes with a low handling fee of 1.5 per cent on all balance transfers and money transfers#.
Michael Donald, Business Development and Commercial executive for MBNA, said: "We are committed to offering new customers greater flexibility and choice when considering a credit card to suits their needs, so that they have the opportunity to purchase today with money they will earn tomorrow using a company they can trust.
"By reducing the money transfer fee on our new Rate for Life credit card, we are enabling eligible customers more flexibility and choice when considering potential resolutions to consolidating their existing debts or funding New Year buying plans."
Money transfers enable customers, for a fee, to move some of their credit card limit into their current account. The money can then be used to pay off all or part of any other credit and store card balances, loans, finance agreements or overdrafts they may have on higher interest rates.
Rates for this product do not change on application. Customers are either accepted for the new Rate for Life credit card product as offered with the 5.9 per cent promotional rates, or they are not.
Customers are able to apply for the new MBNA Rate for Life credit card at:
mbna.co.uk/credit-cards/mbna-rate-for-life-credit-card/
# This is a promotional offer. If a customer pays late or goes over their credit limit the 5.9 per cent promotional rates will be withdrawn and they will be charged the standard balance and money transfer rates of 18.9 per cent and 20.9 per cent respectively on all transferred amounts.
Balance transfers can be used to pay off other credit and store cards. To settle other forms of finance customers may have to make a money transfer into their current account and pay them from there. Making a money transfer to a current account then using a debit card is an alternative way to pay for goods and services; however, there will not be the same protection under the Consumer Credit Act 1974. Even with the handling fee, a money transfer at the 5.9 per cent promotional rate may still work out cheaper than paying with a higher interest rate credit card over the same period.
Transferring other debts to this card and paying only the minimum amount due each month may result in lower overall monthly debt repayments, but it may take longer and cost more to repay what is owed. Paying the minimum may also cost more than other forms of borrowing with fixed repayments over a fixed period. Other lenders may charge a fee for settling a loan early.