Credit Cards

Locked: The Official RFD MBNA 0%/12 Months Thread - Finished

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  • May 31st, 2019 12:12 pm
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Deal Fanatic
Feb 17, 2007
5523 posts
1706 upvotes
I had 12,500$ available and wanted to do a BT of 12375$ (because of the 1% BT fee) and the rep didn't want to do more than 12 350$.
It's only 25$ and I didn't want to argue but still, I don't know why so hard-headed.
Member
Jul 9, 2010
303 posts
21 upvotes
Unlike RBC's no fee BT, there's no point in taking advantage of this for arbitrage reasons since the 1% fee eats up most of the profits. Not even sure I'll get 0%, they've only offered 1.99% so far.
Deal Addict
May 18, 2005
3412 posts
354 upvotes
poptarts wrote:
Nov 16th, 2010 6:14 pm
Unlike RBC's no fee BT, there's no point in taking advantage of this for arbitrage reasons since the 1% fee eats up most of the profits. Not even sure I'll get 0%, they've only offered 1.99% so far.

1% will eat up most of the profits? What kind of profits are you talking about?
Sr. Member
Oct 20, 2008
873 posts
1 upvote
GTA
poptarts wrote:
Nov 16th, 2010 6:14 pm
Unlike RBC's no fee BT, there's no point in taking advantage of this for arbitrage reasons since the 1% fee eats up most of the profits. Not even sure I'll get 0%, they've only offered 1.99% so far.
I'd be interested to know the RBC code for a 'no fee BT' that would also include a 0%/12 or 0/15 mth rate - or any other card offer?

FYI , read the OP it provides you with the current 0/15 codes, so there is no point accepting a 1.99% MBNA offer - is there!

The MBNA 1% BT is over 15 months, so on an annualized basis of 12 months, its 0.8%.

Taking a $10k MBNA 0/15 card over 12 months at zero percent, the BT fee is $80. Now that is relatively cheap arbitrage money IMO.

Using the MBNA money [repeated elsewhere in the thread], to either pay off other high interest debts or simply sticking the $9900 in a GIC inside an TFSA or RRSP, surely there must be some profit, but no loss whatsoever.

At the end of the 15 months you could pay off the balance of the $10k then simply rollover the card balance to another 0/15
Deal Addict
Nov 23, 2003
1682 posts
254 upvotes
Could someone please explain that if I have 11000+ credit limit and I do a BT of 8000..can I keep using the card or I will be screwed and when I make payments, it will go to low interest BT amount? I read that somewhere but I'm not sure.

Also what if I have a balance the day I do BT, am I ok?
Jr. Member
Nov 16, 2008
125 posts
4 upvotes
Ottawa
Singh_21 wrote:
Nov 18th, 2010 5:01 pm
Could someone please explain that if I have 11000+ credit limit and I do a BT of 8000..can I keep using the card or I will be screwed and when I make payments, it will go to low interest BT amount? I read that somewhere but I'm not sure.

Also what if I have a balance the day I do BT, am I ok?

Either way your payments will go to the higher interest rate first (new change as of September 1st; they used to go to the lowest interest rate first). As long as youay the total amount of the purchases before the duedate you won't accrue any interest charges. Just make sure you're covering the minimum payment for your balance transfer and everything will be fine.
Deal Addict
Nov 23, 2003
1682 posts
254 upvotes
Thanks Sensforever. This is good then. Yea, I will pay the purchase balance+ 1% minimum of BT balance every month plus the 1% BT fee for the first month.
Newbie
Oct 29, 2006
85 posts
3 upvotes
Toronto
angel_wing,

Could you please add the information from this post to the front page?

This post saved me from a potentially large interest charge. Basically it describes how to properly "unwind" the BT deal once you are close to end of the 15 month term. The very last day you can keep the money interest-free is the 15th month's statement closing date. It does NOT extend to the payment date (closing date + 21 day grace period) of the 15th month.

For example,

BT initiated August 2009
1st statement closed September 10th, 2009, payment date October 1st (Sept 10 + 21 day grace).
...
13th statement closed September 10th, 2010, payment date October 1st.
14th statement closed October 10th, 2010, payment date October 31st.
15th statement closed November 10th, 2010, payment date December 1st.

To remain interest-free, you must pay your remaining balance in full by November 10th (not December 1st!). Your balance begins accruing interest November 11th.
Deal Addict
Aug 5, 2002
3436 posts
193 upvotes
Newfoundland (Former…
Sensforever wrote:
Nov 18th, 2010 5:38 pm
Either way your payments will go to the higher interest rate first (new change as of September 1st; they used to go to the lowest interest rate first). As long as youay the total amount of the purchases before the duedate you won't accrue any interest charges. Just make sure you're covering the minimum payment for your balance transfer and everything will be fine.

Is this confirmed? Does anyone have a source to back that up? I want to make sure.

Thanks,
Jeff
Jr. Member
Nov 16, 2008
125 posts
4 upvotes
Ottawa
Jeff146 wrote:
Dec 1st, 2010 3:14 pm
Is this confirmed? Does anyone have a source to back that up? I want to make sure.

Thanks,
Jeff

I would consider myself a source since I work there ;)
Deal Addict
Aug 5, 2002
3436 posts
193 upvotes
Newfoundland (Former…
Sensforever wrote:
Dec 3rd, 2010 12:55 pm
I would consider myself a source since I work there ;)

Sweet Thank YOU!!!
Deal Fanatic
Feb 17, 2007
5523 posts
1706 upvotes
Since I did the 0/15 BT, I've been receiving those red enveloppes with BT cheques from MBNA twice or more per WEEK!!! It's been about a month and I must've received about 10 cheque enveloppes! WTF?

Anyone else having the same issues?
Sr. Member
Oct 30, 2006
663 posts
68 upvotes
Halifax
Sensforever wrote:
Dec 3rd, 2010 12:55 pm
I would consider myself a source since I work there ;)

That's why they started offering 0.9% interest rates. When they do this, the method above will not work, because if you pay off $ before the due date, you're actually paying off 0.9% interest money. You would actually have to wait until the due date passes in this scenario, and then pay off the 25% or whatever it is after a couple days of interest accumulation.

But I guess here, where you have 0%, this should be ok.
Newbie
Oct 29, 2006
85 posts
3 upvotes
Toronto
FYI, I think I found a new code.

CJQ2, it seems to be the same deal.
Newbie
Nov 23, 2006
78 posts
2 upvotes
Surrey
OK - I just got my card with a credit limit of $17k (exactly 20% of my income). Called to see if they would increase it but no luck there.

My plan is to use the card to pay off my personal unsecured LOC. Wondering if I do that, then reapply for another 0% card in 6 months or so, would I be eligible for any more credit or would they just look at that as transferring my debt balance from one source to another?

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