CHESTER, England, September 11, 2013 /PRNewswire/ --
MBNA has launched two new 'Rate for Life' credit cards for eligible UK consumers, offering them a choice of low lifetime rate cards to best serve their financial needs.
The two new cards - the 'Rate for Life Credit Card' and the 'Rate for Life Purchase Credit Card' - have been launched for new customers looking to either consolidate existing card debts or make large purchases, such as a new car, holiday or home improvements.
The new MBNA Rate for Life Credit Card is aimed at helping consumers to use their approved credit limit to consolidate other card balances, and offers a low promotional rate of 6.9 percent for life on all balances transferred within the first 60 days of opening an account. MBNA has also removed the handling fees charged to transfer balances from other cards during the same 60-day period.[*]
For major purchases, MBNA has launched the Rate for Life Purchase Credit Card as a possible alternative to a loan. The new credit card comes with a low promotional rate of 6.9 percent for life on all card purchases made in the first 90 days of opening an account. The card offers an agreed line of credit with all the flexibility and protection of a credit card, no early repayment charges, and the freedom to make repayments on the customer's terms, providing they make at least the minimum payment every month.[#]
Michael Donald, Business Development and Commercial executive for MBNA, said: "Everyone's financial needs are different, and we're pleased to be able to offer consumers a choice of Rate for Life credit cards so they can apply for the one that best suits their financial requirements."
Rates for both of these products do not change on application. Customers are either accepted for the new Rate for Life credit cards as offered with the 6.9 percent promotional rates, or they are not.
The cards are available now to compare and apply for now at http://www.mbna.co.uk.
Representative example for both cards of 16.9% p.a. variable on card purchases. This is equivalent to 16.9% APR representative variable based on a credit limit of £1200.
[*] The new MBNA Rate for Life Credit Card offers 0% handling fees on balance transfers made within the first 60 days of account opening. The previous Rate for Life credit card from MBNA came with a 1.5 percent handling fee for balance transfers made within the first 60 days of account opening. Transferring other debts to this card and paying only the minimum amount due each month may lower a customers' overall monthly debt repayments, but it may take them longer and cost them more to repay what they owe. Paying the minimum may also cost them more than other forms of borrowing with fixed repayments over a fixed period. Other lenders may charge a fee for settling a loan early.
[#] This card could be a great alternative to a loan if customers want to borrow at a lower rate, but they will need to bear in mind the following when making their decision about the financial product which best suits their needs: The MBNA Rate for Life Purchase Credit Card comes with a low rate promotional offer on purchases made within the first 90 days. Customers have the flexibility to pay more whenever they want to - so long as they always pay at least the minimum monthly payment. If they miss a payment or go over the credit limit, they'll lose the promotional rate for life and will pay the standard interest rate(s) instead. Unlike a loan, the credit card does not allow them to select the amount they'll borrow, or the term over which they'll borrow. As such, they may want to work out their budget and consider setting up a regular payment so that they can repay what they've borrowed more effectively. Transferring other debts to this card and paying only the minimum amount due each month may lower their overall monthly debt repayments, but it may take them longer and cost them more to repay what they owe.
Picture Caption: The Rate for Life Credit Card and Rate for Life Purchase Credit Card from MBNA
About MBNA Limited:
MBNA Limited is a wholly owned subsidiary of Bank of America Corporation (NYSE: BAC). For more information, visit the company's website at http://www.mbna.co.uk.
Editor and supplementary notes:
The information contained in this press release is intended solely for journalists and should not be used by consumers to make financial decisions. Any consumer interested in learning more about any of this product should visit http://www.mbna.co.uk for full terms and conditions.
SOURCE MBNA Limited