MBNA & minimum "formula"

iVillage Member
Registered: 06-23-2005
MBNA & minimum "formula"
3
Wed, 08-17-2005 - 11:31am

First I want to make it clear that we DO NOT jump at every CC offer we receive in the mail, but lately we've decided we would like to go back to the day when we only made payments to 1 CC company (instead of 3). So we received a great offer from MBNA yesterday in the mail and decided to call & find out more. The offer was for 3.9% on balance transfers until they are PAID in full (exactly what we were looking for). So, I called and they agreed to give me the credit limit I needed in order to move all 3 of our cards to MBNA. Perfect! Then after I hung up, I realized I didn't even ask them about their minimum payment policy. DUH!!! I ended up calling twice to be sure I was getting the correct info, but here is the formula both reps said would be used to figure our minimum: Interest charge (3.9% APR) + 1% of the balance. **Only the 1st month, the payment would include the entire 3% balance transfer fee (which sucks b/c it will be around $380). I asked them why it wasn't just a cut & dried 4% of the balance like we'd been hearing and they said that this was the formula they were using in response to the new govt regulations. Sooo- I guess we'll see when our bills start coming in. Thank goodness we plan to make WAY more than the minimums anyway b/c we are in major "debt reduction" mode at our house.

I just wanted to see if anyone else had been given a formula like this and not just a flat %. I think to be safe we'll budget for 4% b/c I just don't trust these companies. We all know they can and will change their policies on a whim. Plus it will force us to get these dang things PAID in a much shorter time so we can move on to bigger & better things in life besides DEBT.

iVillage Member
Registered: 04-14-2003
Wed, 08-17-2005 - 12:49pm

I don't have any info about the minimum payment formula, but I don't think that they will charge you $380 for the balance transfer. When I read the fine print on my offer, it said something to the effect "3% but no more than $75".

Windy

iVillage Member
Registered: 06-23-2005
Wed, 08-17-2005 - 12:53pm
I actually think I'm going to call them again and see if they can waive it. I explained to all of them last night that we've never paid that fee- esp that much. I think it's ridiculous. And for them to expect it all upfront with the first monthly payment? Yep- I'm calling them back during my lunch break. Wish me luck!!
iVillage Member
Registered: 07-26-1999
Wed, 08-17-2005 - 10:22pm

I used to do balance transfers with Citibank Mastercard and they NEVER charged any fees at all. No, there weren't hidden fees that I missed, there just weren't any fees. Of all the credit cards that my ex and I had (and there were many), MBNA was the worst for their policies.

Of course do what you have to do/get the best offer for your situation, but I would encourage you to shop around a bit. IMO balance transfer fees are *^&^% because no matter how low the interest rate, they are still going to make a lot of money off of you before you get your debt paid off.

This is just my experience and I wish you luck in dealing with your situation.