MBNA card at 34.9% APR

[GreatWonder]

I have held an MBNA card for what must be 12 years + now, and have only just questioned the APR it is on after receiving a revised terms & conditions letter (which MBNA seem to revise every other week).

 

In this letter it states the APR on my standard MBNA visa card is 34.9% on card purchases. This to me seems a bit on the steep side especially when they're advertising their 'Classic' card on their website at 17.9% APR variable.

 

I have not missed a payment in what must be 6 or 7 years, in fact I have a direct debit taking around 4 times what the minimum payment would be each month.

 

Is it worth querying this rate with them, or will I just be told that their APR is tailored for each account and either put up, or pay up!

[spiritgirl59]

Hiya GW

 

I would definitely query this rate!

 

It sounds extortionate to me - and if you have been a loyal customer for so long they are clearly extracting the u-no-wot.

 

I would seriously think about a balance transfer to another credit card with a far better rate.

 

MBNA may well be taking advantage of the fact that you ARE a loyal customer and probably think you cannot be bothered to move your account. Just my opinion for what its worth

 

Love SG x

[Filthy Monkey]

Yes, definitely worth querying it. Ask to speak to the customer loyalty team, stress to them that you have been an excellent client and request that they drop you to a rate to reflect that. Personally, I wouldn't accept anything above 15%, especially if you have a good credit rating. If they won't play ball, apply for an interest free card elsewhere. To be honest, if you are carrying a balance on the card, it may be worth doing that anyway...

[Guest wino]

I would definatly shop around for a good rate.

 

Oh the good old days when I was credit worthy enough to have a credit card - memories.....memories....

[Filthy Monkey]

Ah, Wino, you have my sympathy. I love waking up every morning and thinking how lucky I am to have credit cards. There is just something a little bit special about having £50k of unsecured debt hanging over me. It really motivates me to go to work in the morning...

[Guest wino]

Hi Filthy Monkey

 

I have to pay cash for all my wine now!!

[GreatWonder]

Rang MBNA this morning and they kindly reduced my rate down from 34.9% to 27.9% (this is despite me having a permanent 'block' on the account from big arrears way back in 2001 - which they confirmed before putting me through to the 'loyalty' department).

 

Loyalty department enquired what I wanted to use the card for (bal. transfer, card purchases) to aid the 'review'. I had to bluff this as the rep had no idea I couldn't use my card, now - or in the future.

 

Should save me a few quid while I pay off the balance!

[Filthy Monkey]

It's not a huge reduction, but it stills means more money in your pocket, and all for the cost of a phone call. Well done!

[GreatWonder]

Cheers FM.

 

Just makes me think though, how many credit card holders just 'accept' their APR without challenging it??

 

All it took was a phone call and mine dropped 7%. Yes, this wouldn't work for everyone, but if enough people voiced their anger and possible defection, their card issuers might be more sympathetic.

 

[shywazz]

As the other nice people have said, if you are in the postion to apply for another card, and transferr the balance, to a lower or nil rate card, with a small transferr fee, take that opition, as you wil save even more of your money rather than give it to the CC company....if you do transferr, remember to close the other account, you don't want extra tempitation at using it again....

[GreatWonder]

Thanks for the advice, however with 1 CCJ and 1 Default sitting on my credit report, I don't think I'd be welcome at many credit card companies for the time being (even Cap 1 said 'NO').

 

So I'll be paying off the balance and closing the account. Will just help me do it that little bit quicker now.

[Filthy Monkey]

Have you tried to have anything done about the CCJ and default? Depending on the circumstances, there are ways to legitimately have the CCJ set aside and it may be worth checking to make sure that the necessary regulations were adhered to when the default was issued. If not, there are things you do to have it removed...

[GreatWonder]

I'd be very interested in anything to remove these black marks, though they're way down the line now (both will expire the year after next) and I've been paying both since they were served (back in 2004).

 

The default has had 80% of it's balance paid and the CCJ not much less. So as they were not contested nearer the time I don't think a court would consider their review now. I think the only sensible option would be to sit tight and in 18 months or thereabouts I can kiss both goodbye.

 

They've done me a favour in a way, my debts have never been so small, going from around £11k down to about just £1.5k now. Just have to make sure I don't get myself in the same situation when i'm considered creditworthy (there's stacks of good data on my files now from accounts that I've kept healthy, and I've notched up near 10 years in the same job, just gone back on the voters roll etc.)