MBNA's Platinum Visa credit card not only offers the lowest rate lifetime balance transfer deal around but also acts as an alternative to an unsecured loan for those looking to borrow at a low rate.
What's the deal?
The MBNA Platinum Visa credit card now offers a 5.9% 'life of balance' transfer deal. This means that any balance you transfer onto the card within 60 days of your account being given the go-ahead will benefit from the low 5.9% rate until you've paid it off, however long this takes you.
What makes it great?
The 5.9% rate offered by this card makes it the lowest rate lifetime balance transfer card currently on the market.
What's more, as well as transferring balances from other credit and store cards, you're also able to use the card to make 'money transfers'. This means that you can use the card to transfer cash to your current account so as to pay off an overdraft, a bill or a loan. You could even use the cash you transfer as a low rate personal loan to fund a large purchase.
Together this means that the MBNA Platinum Visa card has a really attractive offering both in terms of the rate it charges, and the flexibility with which you can make use of the balance transfer offer.
Who would it suit?
The card is available to individuals over the age of 18 with a good credit rating (read no recent CCJs, arears or missed payments).
However, as ever, it's important to consider whether a lifetime balance transfer credit card presents the best deal for your circumstances, irrispective of how you plan to use the balance transfer offer.
What's the catch?
Firstly, it's important to note that the card does apply a handling fee of 2% (subject to a £3 minimum). This means that you'll need to pay MBNA 2% off the amount that you plan to transfer in return for the 5.9% guaranteed rate. Bear in mind that you should, if possible, opt to pay this amount up front; otherwise it will be added to the back of your credit card repayment que and start attracting interest.
It's also a good idea to reserve this card for balance transfers only. Any new purchases made on the card will attract interest at a rate of 16.9%; while any cash withdrawals will attract interest at a rate of 27.9%. Worse still, because of the way your repayments will be allocated, these 'expensive' balances will sit on the card accruing interest until you've paid off any balances you transfer under the lifetime balance transfer deal.
You'll also need to bear in mind that any balances you transfer after the 60 day promotional window closes will attract interest at a rate of 18.9%. For this reason it's important to act swiftly and transfer any amount you need to - whether to another credit card or as cash - as soon as possible once your application has been approved.
Finally, while the card has a very low minimum repayment the lesser of 1% of your outstanding balance or £25, it's a good idea to pay off more than this if you possibly can.
While there's no doubt that the 5.9% balance transfer deal presents a very attractive offer for those who are looking for a low rate loan alternative or lifetime balance transfer, it's important to remember that any amount you transfer will still attract interest, albeit at a reasonably low rate. As such it's in your interest to pay off as much as you possibly can each month so that you clear the balance as soon as possible.
What's the alternative?
The Leeds Building Society credit card offers an MBNA-alternative with an equivalent life of balance transfer deal (a 5.9% lifetime balance transfer rate with a 2% handling fee). It does however, limit the amount you can transfer to the lesser of £5,000 or 90% of your credit limit, whereas the Platinum Visa card caps this at £50,000.
MBNA's 6.7% American Express card offers a handling fee-free life of balance transfer alternative that's also worth considering.
Again, you will need to transfer balances within 60 days of your application getting approved in order to benefit from fee-free transfers. However, as the card's typical APR is identical to the 6.7% balance transfer deal, you'll not feel the sting from any new purchases made on the card quite as greatly as with the Platinum Visa or Leeds Building Society credit cards.
Alternatively, there are a vast number of credit cards that offer interest free balance transfers subject to a handling fee and time limit. These are always worth considering if you're looking to cut the cost of existing debts as you'll be able to focus on repaying your outstanding balance without any additional interest accruing. However, you will need to either be confident that you can repay any amount you transfer completely before the 0% offer end date, or be willing to switch to a new card once the promotional rate ends so as to avoid paying unnecessary interest.
We have done our very best to make sure that the information included in this Deal is accurate. However, sometimes offers can be withdrawn or changed at the last minute so please do check that you're able to redeem this Deal before parting with any money, or going out of your way to take advantage of the offer.
