The MBNA Card
Written: Nov 26 '02 (Updated Apr 14 '04)
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Pros: Offers low fixed rates.
Cons: Offers highest balance transfer fee of any credit card company.
The Bottom Line: MBNA offers low fixed rates, good reward programs, but high balance transfer fees.
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| blastboy's Full Review: MBNA Platinum Plus (Mastercard and Visa) |
I'm updating my review of MBNA. Many things have changed since my last review. I hope others find this helpful.
One of the good things about MBNA right now is that they are finally offering low fixed rates. Some of their good rewards cards, such as Gold Points and Elite Rewards, are priced at 9.9% fixed rate for purchases. The cash advance rate used to be the same as the purchase rate, but recently they have adopted the industry standard of 19.99% fixed. MBNA customers who currently have a cash advance rate lower than 19.99% may soon, if not already, find a change in terms notice in their statement indicating the rate change. Another thing MBNA has done is add a penalty rate if you are late on your payments, or exceed your credit line.
Redemption levels for Worldpoints start out at $2500, comparable to Bank One's Free Cash Rewards and Extrodinary Rewards. Citibank's Diamond Preferred Rewards card starts off at a lower redemption level with $1500 but MBNA offers a more attractive APR. With Elite Rewards, you may only earn half a point instead of a full point if you pay your balance in full each month. But if you're simply looking for a low fixed rate, MBNA may be the choice for you. Another good thing about MBNA is that they can deposit, up to your credit line, cash into your account. Bank One accounts have a maximum of $5,000 of credit that can be deposited.
For those with great credit, MBNA is offering great rates on their credit cards. This is by invitation only. For example, I recently openned a University of Texas Ex Students Association card. If I use my card, a portion of what I charge is given to The Ex Students Association (The Alumni Association). In Addition, they offered WorldPoints with the card, so I can also earn points. The rate is 7.9% fixed for both purchases and cash advances.
One enormous drawback I would say about that MBNA card is the balance transfer fee. This fee is rarely offered to be waived, but I've noticed that if you do ask for it to be removed, they are more willing to do so than Bank One representatives are. The balance transfer fee is $10 minimum, $75 maximum. Discover and Chase's balance transfer fees are $5 minimum, $50 maximum. For new Bank One accounts, the minimum is $5, the maximum is $65. So currently, MBNA offers the highest balance transfer fees of any credit card company.
When it comes to credit lines, MBNA is one of the most generous credit card companies. Pay on time, don't be close to your credit line, and always paying more than the minimum will definately get your credit line increased with them, even if your credit score is as low as 640 - 680, and even if your credit report shows high balances, excessive inquiries, and too many credit cards with high available credit.
Customer Service is top notch, and I would rate it significantly above Bank One, Citibank, Fleet, Chase, and Bank Of America.
For those of you curious about credit bureau information, MBNA usually uses TransUnion as their primary reporting agency for a credit application (application for a credit card or for a credit line increase). Experian may also be pulled as a back up, if a TransUnion is not available. Usually both a TransUnion and an Experian will be pulled, but if both have very different information, usually they will go with the one that makes you look worse. For example, if TransUnion shows a collection account and Experian does not, they will still hold the collection against you. However, when I applied for my Ex Students Association card, only an Experian was pulled. Equifax is rarely, or perhaps never pulled for a credit application. However, once a cardmember has an account established, Equifax is the primary reporting agency used to monitor a cardmember's credit. Experian is occasionally monitored, and TransUnion is rarely or perhaps never monitored.
But one thing I would like to mention is that if a cardmember does have negative information show up on Experian or Equifax, they may increase your rate to higher than 20%, even if the cardmember has never been late on their MBNA account. If a cardmember calls in to speak to the department that has implemented the higher rate, they may evaluate TransUnion, Equifax, and Experian to determine if they can retract the rate increase.
In closing, I give the MBNA card a thumbs up. They have gotten aggressive about their fees, but their APRs are fixed (which consumers like) and their credit lines are attractive. They will regularly review your account for a credit line increase, and as long as you can make large payments with respect to the balance, they will increase your credit line, even if you don't have the best credit score out there.
Recommended:
Yes
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Epinions.com ID:
blastboy
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Reviews written: 4
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