No. of Recommendations: 12
DH and I have been playing the balance transfer game with gusto for about 6 months now, and have been paying an average interest rate of about 1%. A few weeks ago I got an MBNA offer in the mail for "up to $100,000" at 0% through January 2003, and I called and completed the application. They asked how much I wanted, and just for the hell of it I told them $25,000.

Imagine my surprise when they called me today, asked a few perfunctory questions about my employment and the value of my home, and the 1.7% MBNA account I opened in October. I answered the questions and told them the MBNA account was balance-transferred to Discover just a few days ago, which is true. The guy then informed me that my applicaiton was approved and they would be transferring $25,500 ($500 more than I asked for!) into my checking account within the next week or two, at 0% through January 2003. Amazing!!!

That is a high enough credit line so that we will now have ALL of our debt at 0% through January, and if we get a little luck, it's possible we could have it all paid off by then, without spending another penny in interest!!!

I don't know how MBNA can afford to do these deals, but I'm sure happy about it!
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I don't know how MBNA can afford to do these deals, but I'm sure happy about it!

Before I question you, let me understand. MBNA is loaning you $25,500 for about 6 months at 0%. Is that correct? They can afford to do it, because they don't expect you to pay it back on time. Simple as that. In January, the interest rate will go up, and then they've got you. That is the plan. Most people are caught by this. If you plan right, you won't be.

Shadbus
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I agree that they expect you to be caught with your pants down.

BEWARE: As someone just informed me they typically ask you to pay a 2% minimum on the total balance, even when the APR is at 0%. So, 2% of $25,000 per month is equal to 24% APR, except that your balance goes down after every month, unlike interest payments. So you will probably have a $250 payment every month but your balace will be falling. Let me know if I am wrong as that would be interesting to note.

Mangard
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So, let me get this straight.

Not only did they approve you for a credit line of $25,500, they gave you basically a blank check for that amount? Like, "Here's some cash"?

Don't you think they would worry about y'all selling your house and moving to Mexico?

frissy
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Doesn't this 2% minimum payment apply to just about every major credit card?

-A.
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I didn't think to ask about the minimum payment because we are in full-on snowball mode, paying a total of $4250 every month, so the minimum payment isn't really all that relevant at this point. (And may I say how nice it is to be at the point where we're not sweating out making the minimums!)

And yes, I am fully aware that they expect to catch me with my pants down. But this is a no-fee card and the non-promotional rate is still only 9.9%, so even if we end up paying a month of two of interest it won't break the bank. Plus if it's not paid off by the time the 0% rate expires, I fully expect someone else to be offering a BT at less than 9.9%. Discover seems to be good about promotional rates on my existing card -- the longer you go without biting, the lower they set the rate!

All things considered, we are feeling pretty fat and happy right about now!
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So, let me get this straight.

Not only did they approve you for a credit line of $25,500, they gave you basically a blank check for that amount? Like, "Here's some cash"?

Don't you think they would worry about y'all selling your house and moving to Mexico?


Yep, you've got it straight. If I spoke Spanish I might be tempted.
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Yep, you've got it straight. If I spoke Spanish I might be tempted.

You don't need to be able to speak Spanish if you can yell real loud (at least, that's what all the gringos think)
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MNBA can afford those deals because most people do not have the will power to pay the balance off before the 0% runs out. Either that or thay have an MBNA card in their wallet and after all the balnces are paid off or transferred to the new account they then pull out the credit cards again and run them up. Only need a few of these types to offset those that have the discipline to make the BT game work

herb
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MNBA can afford those deals because most people do not have the will power to pay the balance off before the 0% runs out. . . Only need a few of these types to offset those that have the discipline to make the BT game work

Well, I say God bless 'em!

mlk58
disciplined BT-er
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Did they tell you how much the transfer fee was? I did one of those 0% MBNA deals this spring and was hit with a pretty good fee.

MarkT
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Did they tell you how much the transfer fee was? I did one of those 0% MBNA deals this spring and was hit with a pretty good fee.

I just opened this same card, except I was given a limit of $10,000. I only used $2800 to put towards my car. They also deposited the amount into my checking account. It arrived today.

There is no fee if you do the BT at the time you open the card. Otherwise it is a 3% fee (maximum of $40).

Funny thing is I just received the exact same offer again in the mail yesterday. This is the same card except that it has my sorority on the card, the one I just opened is through my bank. Thought about applying again just for laughs.

Wendy

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I just got one of these as well. Some sort of affinity group promotion through my alumni association. I thought it sounded like a load of crap and almost threw it out (in fact I think it's sitting in my junk mail pile as we speak). May have to give it a shot although I don't know how my FICO is doing right now.

-neondeion
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DEAR MBNA.. PICK ME! PICK ME1

.. I HAVE YOUR CARD A ZERO BALANCE (SINCE JANUARY)AND A CREDIT LIMIT OF 23,500. IT GOES UNUSED BECAUSE YOU HAVE NO BT DEAL FOR ME. YES, I CALLED AND ASKED IN FEBRUARY, AND MARCH.

CHERIE
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By all meands , Congratulations!

Mangard
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If no BT fee, well, that is a wonderful deal, and what a great boost to your future cc payoff!! Congrats!

Lyn
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D@mn! I want one!!! :-)

I'd have asked for the whole $100K! You could pick up almost $2K on the interest if you simply stuck it in an ING savings account until January.

- Joel
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Joel, DH and I were just talking about that! If I had it to do over, I'd definitely have asked for the whole thing! Oh, well... c'est la vie!

I just sat down and it will be enough to pay the Discover and AT&T Universal in full, leaving only a little bit on the Citibank MasterCard, which will be paid in full via snowball by August -- long before its 0% rate expires in October.

It will be REALLY cool to only have one creditor to make payments to!

mlk58
did I mention I was feeling fat and happy?
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mlk58,

You wrote,

Joel, DH and I were just talking about that! If I had it to do over, I'd definitely have asked for the whole thing! Oh, well... c'est la vie!

I just sat down and it will be enough to pay the Discover and AT&T Universal in full, leaving only a little bit on the Citibank MasterCard, which will be paid in full via snowball by August -- long before its 0% rate expires in October.


Have you tried calling MBNA back and asking them if they would consider it? On the same terms, of course.

- Joel
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I got this offer too....my question is ..."How did you get them to deposit the money in your checking account??" Did you give your debit card number as the card you wanted to transfer too?


BTW, my offer was only for $50,000. My fico score has taken a few hits lately.
thanks,
Liz
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..."How did you get them to deposit the money in your checking account??" Did you give your debit card number as the card you wanted to transfer too?

I gave them my checking account information and about 6 days later, it showed up in my checking account as a deposit. I specifically asked and this does not set up any automatic withdrawal for payments, etc.

I was only given an amount for $10,000, they didn't ask me how much I wanted, just told me that that would be my credit limit. I just did a second BT and they did not have my checking account info on record from the first BT.

When the CSR was looking at my CR for approval, we were discussing it is general and I stated that I have never been late on a payment and he actually told me that what he looked for on the credit report was a debt to income ratio.

Wendy


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Thanks!!
I'll sit down sometime this weekend...give them a call....and see how it goes.... I have a few 0% rates expiring soon....that I would love to continue. Actually, I would love to see the darn things disappear, but that is another story.

thanks
Liz
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iamfullofmoney,

You wrote, I got this offer too....my question is ..."How did you get them to deposit the money in your checking account??" Did you give your debit card number as the card you wanted to transfer too?

ACH (Automated Clearing House) is the preferred (electronic) method for transferring funds between bank accounts. Most CC companies can do this for you. All they need is your bank account number and the bank's routing number -- they can be found on any of your checks.

- Joel
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