MBNA 0% Transfers and Purchases Credit Card

By: Peter Stephens | Updated: 31st August, 2019.

Great for: Long 0% balance transfer period, 0% money transfers
3 stars question mark

The MBNA 0% Transfers and Purchases Credit Card is likely to be highly appealing to consumers who are looking to reduce the amount of interest they pay on future purchases as well as on existing debt. It offers a long introductory 0% interest rate on purchases made in the first 60 days after account opening, as well as competitive balance transfer and money transfer offers.

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CREDIT RATING req:

  • Poor/No credit
  • Fair/Average
  • Good/Excellent

HIGHLIGHTS

  • 0% interest for 27 months on balance transfers made in the first 60 days (2.69% fee applies)
  • 0% interest for 12 months on money transfers made in the first 60 days (4% fee applies)
  • 0% interest for 27 months on purchases, but only those made in the first 60 days
  • No annual fee

REPRESENTATIVE EXAMPLE

Representative rate 20.9% APR (variable)
Purchase rate 20.9% p.a. (variable)
Based on borrowing £1,200

what we like

  • 0% interest for 27 months on balance transfers made in the first 60 days (2.69% fee applies)
  • 0% interest for 12 months on money transfers made in the first 60 days (4% fee applies)
  • No annual fee
  • ANNUAL FEE:

    £0
  • REPRESENTATIVE APR:

    20.9%
  • INTRO OFFER:

    0% interest for 27 months on balances transferred in first 60 days
    0% interest for 12 months on money transfers made in first 60 days

KEY SCORES:

  • 3/5 Perks
  • 3/5Fees
  • 3/5APR

HIGHLIGHTS

  • 0% interest for 27 months on balance transfers made in the first 60 days (2.69% fee applies)
  • 0% interest for 12 months on money transfers made in the first 60 days (4% fee applies)
  • 0% interest for 27 months on purchases, but only those made in the first 60 days
  • No annual fee

REPRESENTATIVE EXAMPLE

Representative rate 20.9% APR (variable)
Purchase rate 20.9% p.a. (variable)
Based on borrowing £1,200

OUR BOTTOM LINE

The MBNA 0% Transfers and Purchases Credit Card is likely to be highly appealing to consumers who are looking to reduce the amount of interest they pay on future purchases as well as on existing debt. It offers a long introductory 0% interest rate on purchases made in the first 60 days after account opening, as well as competitive balance transfer and money transfer offers.

Credit Rating Requirement: Good/Excellent

What I like

  • 0% interest rate on purchases – The card offers a 27-month introductory 0% interest rate period on purchases made in the first 60 days following account opening. This could make it appealing for consumers who have a major upcoming purchase. For example, a £1,200 balance held over the 27-month introductory period would save £510 in interest costs versus having the same balance on a credit card with an APR of 18.9%. It is important, though, that any balances incurred are paid off before the end of the introductory period, since 0% APR cards can charge relatively high rates thereafter.
  • Balance transfer offer – The card also has a 27-month 0% interest rate offer on balance transfers conducted within the first 60 days of account opening. This could make it attractive for consumers who have an existing credit card debt elsewhere and wish to reduce their interest payments. For example, a £2,500 credit card balance at an APR of 18.9% with repayments of £100 per month would be paid back seven months earlier by switching to the MBNA 0% card, while interest savings of £561 would be made. This takes into account a 2.69% balance transfer fee.
  • Money transfer offer – A 0% interest rate is charged on money transfers for the first 12 months after account opening. This could make the card a realistic alternative to a short-term personal loan. However, beyond the first 12 months of being a cardholder, a personal loan may offer a more favourable rate of interest.
  • No annual fee – With no annual fee being charged, the card may appeal to a range of consumers. For example, frequent and occasional users alike may be able to benefit from the potential savings available through the card’s 0% interest offerings.

Why trust me

I have been writing for The Motley Fool since 2013, and have experienced the booms and busts of the UK economy for a number of decades both as an investor and a consumer. I have held various senior management positions during my career, while also setting up my own manufacturing company in 1996. It was subsequently sold in 2007. I have a keen interest in consumer finance, as well as in the stock market.

What could be improved

  • Foreign transaction fee – There is a 2.95% fee charged on transactions that are undertaken in foreign currencies. This could make it a costly means of spending while abroad, or when purchasing goods or services from another country. Therefore, it may be worth having a second credit card that does not charge such a fee.
  • Rewards – The lack of rewards offered by the card means that other credit cards may be more appealing for everyday use. They could help consumers to maximise the benefits of everyday spending through cashback or vouchers for their favourite retailers that increase in line with how much they spend.
  • Bonus – The lack of a sign-up bonus means that other 0% interest rate cards may be better able to differentiate themselves in what is a competitive marketplace. It may be possible for consumers to obtain vouchers or perks from other credit cards, while also making interest savings on purchases and balance transfers/money transfers.

How does it stack up?

The card’s 27-month introductory 0% interest rate period on purchases is relatively long when compared to those of its peers. However, it is only applicable to purchases made in the first 60 days after account opening.

Therefore, while the card may be appealing if you plan to make one or more major purchases soon after account opening, other 0% interest rate credit cards may be more suitable if you wish to access a low interest rate on purchases made over a longer time period.

The card’s 27-month 0% interest rate on balance transfers, as well as a 12-month 0% interest rate period on money transfers, helps to enhance its appeal for consumers who wish to reduce their interest payments.

Its foreign transaction fee is fairly standard for a non-travel credit card, with most of its 0% interest rate and balance transfer rivals having a similar transaction charge for purchasing goods and services in a foreign currency.

The card’s lack of rewards and sign-up bonus may mean that consumers are able to obtain a sweeter deal elsewhere. However, in its primary role as a credit card that reduces interest payments on existing credit card debt and on purchases made soon after account opening, it performs well.

Credit score

Applicants for the card should have a good credit rating. Therefore, it is worth ensuring that your repayments on your existing credit card and other debts are up to date before applying.

As with all credit cards, only 51% of successful applicants are required by law to receive the advertised interest rate, 0% interest periods and other features of the card. Therefore, you may be offered less favourable terms than those advertised, which could impact on the potential interest payment savings from obtaining the card.

How to apply

Applications for the card can be undertaken online through the MBNA website, with the process likely to take around ten minutes.

MBNA offers an eligibility checker that could provide guidance on the likelihood of you being accepted for the card without impacting on your credit score.

Before applying, it is worth getting information such as your employment details, address history and details about any cards from which you wish to transfer a balance, since they will be needed during the application process.

Is the MBNA 0% Transfers and Purchases Credit Card right for you?

If you are looking for a credit card that offers a relatively long 0% interest period as well as balance transfer/money transfer offers, the MBNA 0% Transfers and Purchases Credit Card could be highly appealing.

It compares favourably to other 0% interest rate credit cards in terms of the length of its introductory interest rate period. However, other credit cards offer a more generous time period than the MBNA 0% Transfers and Purchases Credit Card’s 60 days in which to access the 0% introductory interest rate on purchases.

Although the card lacks rewards and sign-up bonuses, while it also charges a fee on foreign transactions, it fulfils its main role as a card that reduces the amount of interest paid on purchases and existing debt. Therefore, it is likely to appeal to the 40% of UK credit card holders who do not pay off their balance in full each month.

See the Best 0% Credit Cards


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