August 24, 2010
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News: What A Deal; Zero Interest, Zero Fee
Once again, the MBNA group has taken its marketing strategies to a whole new level. As the company launches its new credit card boasting a 1.9 percent interest rate for a period of 12 months on all balance and cash transfers. To sweeten up the deal, MBNA will waive the usual 4 percent transfer fee it typically charges on all balance transfers. The MBNA offer is the only card being offered at this time that is offering the zero percent transfer fee. There are, however, a number of other credit cards currently being marketed with a zero percent interest for 12 months or longer on balance transfers and purchases. The zero percent transfer fee makes MBNA's new credit card offer one of the most inviting of all others being marketed.
Another great feature of the new MBNA credit card offer is that unlike other offers, theirs includes cash transfer or advances as well. The offer should stimulate spending since the cash offer will give cardholders an opportunity to spend the low interest loan for whatever purpose desired. The offer is only available online and any cash or balance transfer must be completed within 90 days from the account opening date. Cardholders should be aware that the low interest rate offer does not apply to purchases. The interest rate on all purchases and any transfers made after the 90 day period will cost the credit cardholder a whopping 16.9 percent. Likewise, at the end of the 12 month promotional period, the interest rate on all balance transfers and cash advances will also revert to the 16.9 percent rate.
Although MBNA has been highly active in marketing products that are aimed at helping cardholders in their plight to reduce card debt as of late, the company has not gone without criticism. Back in 2004, MBNA was one of the companies mentioned on a Frontline PBS special alleging the company had been participating in unfair business practices by credit card companies. Some of the unfair practices that MBNA had been accused of participating in included doubling or tripling of interest rates, shifting billing due dates/payment cycles monthly, and raising rates for customers whose payments were a day or two late and rate-jacking which earned the company the title "Great MBNA Interest Rate Escalator Trick."