CHESTER, England, February 21, 2011 /PRNewswire/ -- Consumers looking to consolidate high interest bearing debts on a lower long term rate should consider an exclusive online credit card from MBNA.
The MBNA Rate for Life credit card offers a promotional rate of 5.9% and a low handling fee of 1.5% on all balance transfers and money transfers made within the first 60 days of opening an account.
Will Curley, product executive for MBNA, said: "The MBNA Rate for Life card is one of the best products in the market for helping consumers to consolidate higher interest bearing debts; and it could save people a great deal of money(1). This card enables customers to bring higher interest-bearing credit card balances, loans, finance agreements or overdrafts together and consolidate them on a lower rate of interest, 5.9%, on balances transferred in the first 60 days until they are paid off(2).
"The money transfer option we offer allows customers to transfer money from their credit card straight into their current account for one of the lowest transfer fees in the market(2)."
The average interest rates on a GBP3,000 loan in the UK market are currently around or above 15%.
Mr Curley added: "This credit card can offer consumers certainty of cost, it is covered by the layers of security and protection credit cards offer, there are no early repayment fees, it offers flexible repayments if circumstances mean customers can pay more and it can support many in reducing the overall debt and interest charges they pay on other debts, agreements or loans."
This is an Internet-only offer and anyone interested in learning more about the new MBNA credit card should visit http://www.mbna.co.uk/creditcards/mbnacards
1 On-line research for personal loans from high street banks shows (correct as of 12 noon 21st February 2011): - Halifax (GBP3,000 over three years) - 22.9% APR - total interest GBP1,202.21*
For Halifax the first repayment is due three months after the start of the loan, therefore the loan term is slightly longer than the number of repayments.
- HSBC (GBP3,000 over three years) - 18.9% APR - total interest GBP874.01 - Santander (GBP3,000 over three years) - 14.9% APR - total interest GBP689.64 - MBNA Rate for Life Credit Card2 (GBP3,000 over three years) - 5.9% APR - total interest GBP279.61 (+GBP45 fee)
2 If balance and money transfers are made within the first 60 days. The rate applies until the transferred balances are paid off. The standard rate of interest for card purchases will be 16.9%p.a. (representative 16.9%APR variable). Promotional rates will no longer apply from the beginning of any statement period during which a customer has breached their terms and conditions.
About MBNA Europe Bank
MBNA Europe is a wholly owned subsidiary of Bank of America Corporation (NYSE: BAC) and is the recognised leader in affinity marketing.
For more information, visit the company's website at
http://www.mbna.co.uk or Bank of America's website at
Editor and supplementary notes:
The information contained in MBNA Europe's press releases is intended solely for journalists and should not be used by consumers to make financial decisions. Any consumer interested in finding out more about any of MBNA Europe's products should visit http://www.mbna.co.uk for full terms and conditions.
SOURCE MBNA Europe Bank Ltd