Credit Cards

RBC RateAdvantage visa good or bad?

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  • Mar 10th, 2019 11:14 pm
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Newbie
Feb 12, 2019
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RBC RateAdvantage visa good or bad?

Hello,

I’m just wondering if anyone has the RBC rateAdvantage visa and if so, is this good to have? I called my bank to apply for a LOC and they suggested I get that instead. Because I have a big car loan as well as student loan I may not get approved for LOC. My credit score is really good (774 with b rating) I make 62k a year but I have no savings and no assets besides the truck. I couldn’t find a lot of info online about this visa so I’d like to get some input from anyone that may have this visa. I was offered 10k at a total of 10% and was told that I could do cash advances and it would be at that rate which is most likely the same if not better then what I would get if I got a LOC. I still need to go into the bank to prove the income that I gave them and they said assuming it is all correct that is the rate I would get. Any Input would be great. Thank you!
Last edited by Amandaew on Mar 8th, 2019 11:23 pm, edited 1 time in total.
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May 8, 2009
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Basically they're suggesting you grab their low interest card.

Low interest card vs. uLOC
  • easier approval
  • front higher borrowing cost (balance transfer usually flat fee)
  • CL usually starts low on these at big banks
  • cheaper cash advance fees than regular CC's, but higher than uLOC via debit
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What's the reason you gave for needing LOC?
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Feb 12, 2019
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For emergency and to pay off a small high interest loan.
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Amandaew wrote: For emergency and to pay off a small high interest loan.
Give us some numbers. What's the balance and what's the interest percentage? Also, at reduced interest rate, how fast could you pay off the balance?

There are great intro BT offers for 10 months at MBNA. RBC has BT intro offers on (all?) their cards. Can you pay off within 10 months?
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10k at 6.9 + prime 3.95. I will only be using 1k and it’ll be paid off within the next 2-3 months.
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Amandaew wrote: 10k at 6.9 + prime 3.95. I will only be using 1k and it’ll be paid off within the next 2-3 months.
$1k pay off in 2-3 months might not be worth the hassle to bt if you have it at 10.85% interest.
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Feb 12, 2019
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I had a look at The MBNA and all of the have high interest rates at 19.9%.
Newbie
Feb 12, 2019
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But, with a low interest rate isnt it better compared to other credit cards? Even if I don’t use it all? Also, if there is an emergency or a need to use a large sum I thought it would be better than a regular high interest rate credit card. Seeing as she thinks I will not be able to get a LOC I thought it would be the next best thing.
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Aug 5, 2018
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Amandaew wrote: But, with a low interest rate isnt it better compared to other credit cards? Even if I don’t use it all? Also, if there is an emergency or a need to use a large sum I thought it would be better than a regular high interest rate credit card. Seeing as she thinks I will not be able to get a LOC I thought it would be the next best thing.
Honestly, based on what you said, i think you should:

go to GCR (google search if you dont' know GCR, and make an account),
go to categories
go to credit cards
get the MBNA true line credit card (the one without annual fee)

you get $60 from GCR and 0% APR for 6 months with 1% balance transfer fee.

Since your score is good, you would be looking at 5k CL at least.

If we conservatively estimate you get 5k CL, then compared to 10% APR for 3 months, you only pay 1% BT fee, so you saved 5k* 9% /4 ~ $110, plus $60 from GCR, for a total value of $170, which is a great return for a card application.

This number would increase if you get a higher CL, plus you get the added flexibility of paying off the balance over 6 months, instead of 3 from your plan.

After you pay it off, just put away the card until another rainy day. Keeping it open helps your score.
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Feb 12, 2019
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Thank you guys for all your advice! I’m very new to all this credit stuff and it can be overwhelming! And there are so many options out there.
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xx1what wrote: Honestly, based on what you said, i think you should:

go to GCR (google search if you dont' know GCR, and make an account),
go to categories
go to credit cards
get the MBNA true line credit card (the one without annual fee)

you get $60 from GCR and 0% APR for 6 months with 1% balance transfer fee.

Since your score is good, you would be looking at 5k CL at least.

If we conservatively estimate you get 5k CL, then compared to 10% APR for 3 months, you only pay 1% BT fee, so you saved 5k* 9% /4 ~ $110, plus $60 from GCR, for a total value of $170, which is a great return for a card application.

This number would increase if you get a higher CL, plus you get the added flexibility of paying off the balance over 6 months, instead of 3 from your plan.

After you pay it off, just put away the card until another rainy day. Keeping it open helps your score.
10 months with no cashback if it's greedyrates
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OP, @xx1what gave great advice. If you pay off within six months, the GCR $60 for the 6 months promo will fit the slot nicely.

You asked if a low interest card is "better". That's rather subjective as everyone's situation is different, and everyone's priorities and interests are different.

Low interest cards usually offer no rewards, some have even a small annual fee for a lower interest rate, they often have lower cash advance fee, and issuers are often less likely to approve the big CL's for those.

Those of us who go after BT offers couldn't care less what the "real" interest rate would be, since we'd only keep a balance on the card within the BT offer (meaning make at least minimum payments and pay off balance when promo ends). Heck, I'd be ok with a card with 30% interest if it gave me 0% BT offer for 15+ months.

But for spending, it's "penny wise, pound foolish" to use a low interest card. You could use a high earner card to spend. If you're not prepared to pay that balance with your real money, then consider a balance transfer. You would have likely earned above the cost of the balance transfer on the high earn card anyway.

This is all advice for those who he self-control. Anyone who doesn't have self-control on spending should build that up with prepaid cards only. For that I'd recommend Koho, Mogo and Stack. Once the self-control on spend is established, then do what you will with personal credit cards within your level of comfort.
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Thinking FaceInteresting. There is way more to learn about credit cards then I had thought!
So, with BT how exactly does that work? Example: if I did get that RBC rateadvantage visa with the 10k cl and then go to Mnba and transfer my RBC balance to that card does the RBC visa then become canceled? How exactly does that work? and is there a limit to the amount that can be transferred? Also, is the BT on top of an amount that mnba offeres me? Again, thanks for all the tips! It’s very helpful.
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Amandaew wrote: Thinking FaceInteresting. There is way more to learn about credit cards then I had thought!
So, with BT how exactly does that work? Example: if I did get that RBC rateadvantage visa with the 10k cl and then go to Mnba and transfer my RBC balance to that card does the RBC visa then become canceled? How exactly does that work? and is there a limit to the amount that can be transferred? Also, is the BT on top of an amount that mnba offeres me? Again, thanks for all the tips! It’s very helpful.
Using your example, to BT from RBC to MBNA
  1. no, it just reduces your card balance by the amount you BT'd. If you BT the card's full balance, that means the card is "paid off", until you spend on it again
  2. Yes. With most issuers, up to your CL. CIBC is notorious for setting a cash advance / BT limit of 50-100% of your CL, meaning as a new cardholder you could probably only BT half of your CL. Same goes for AmEx Essentials. I avoid such cards for BT's.
  3. The BT can be done any time, but strategically, you'd do it when you get a BT offer/promo. Can be an intro offer on a card, else an offer they send you on an existing card. MBNA's BT offers are generally best on intro offers, which is why many of us here churn MBNA BT cards.
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Amandaew wrote: Thank you for explaining!
You definitely don't want to apply to RBC, and then apply to MBNA. Definitely not.
You would waste an inquiry, and also get a lower limit with MBNA.

So I'd suggest apply to only MBNA true line through GCR for $60 bonus.



I think you can balance transfer ~98% of your MBNA credit limit to your checking account, as there is 1% BT fee that also needs to be paid.
Then you can use that money to pay off your loan, if they accept payment in full, to avoid 10% APR.

If you don't get a high enough credit limit to your liking, you can try to find another good BT offer after this MBNA card.
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titaniumtux wrote: Those of us who go after BT offers couldn't care less what the "real" interest rate would be, since we'd only keep a balance on the card within the BT offer (meaning make at least minimum payments and pay off balance when promo ends). Heck, I'd be ok with a card with 30% interest if it gave me 0% BT offer for 15+ months.
THIS ^^
xx1what wrote: You definitely don't want to apply to RBC, and then apply to MBNA. Definitely not.
You would waste an inquiry, and also get a lower limit with MBNA.
And THIS ^^

Just forget the RBC card and go for the MBNA first. If for some reason MBNA doesn't approve you, then I'd look at other options.
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CouponBaron wrote: THIS ^^


And THIS ^^

Just forget the RBC card and go for the MBNA first. If for some reason MBNA doesn't approve you, then I'd look at other options.
+1
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xx1what wrote:
You definitely don't want to apply to RBC, and then apply to MBNA. Definitely not.
You would waste an inquiry, and also get a lower limit with MBNA.

So I'd suggest apply to only MBNA true line through GCR for $60 bonus.



I think you can balance transfer ~98% of your MBNA credit limit to your checking account, as there is 1% BT fee that also needs to be paid.
Then you can use that money to pay off your loan, if they accept payment in full, to avoid 10% APR.

If you don't get a high enough credit limit to your liking, you can try to find another good BT offer after this MBNA card.
CouponBaron wrote:
THIS ^^


And THIS ^^

Just forget the RBC card and go for the MBNA first. If for some reason MBNA doesn't approve you, then I'd look at other options.
try to apply for the MBNA first, if you get denied, immediately apply for RBC. needs to be on the same day for the credit check. RBC has a BT promo for Rewards+, 1.90% 0% fee for 10 months. available on ratesupermarket.

edit: 1.90% interest
Last edited by terracotta92 on Mar 10th, 2019 10:46 pm, edited 1 time in total.

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