Credit Tips: Credit Card Fine Print Review

Posted On: July 20, 2006

Author: fenster
Posted: Thu Jul 20, 2006 7:26 pm
Post subject: Do Not Let the Fine Print Dissuade You

I was offered a preapproved World Points Platinum Plus card, issued by MBNA for NetBank’s customers. The offer consisted of 0% APR till August, 07 on BTs and advances, thereafter, a fixed rate of 7.9%.

Parsing the fine print, turns out NO CAP on a 3% BT fee. I call MBNA and first try to haggle for a no fee BT on $10K so I can earn 5% on ‘em at my bank. The rep comes back with no deal. Then I impart to him all my other MBNA cards have a Cap of $75 per BT, how about honoring that.

This time out he says how about a flat fee of $100 on the $10K, I say deal; a savings of $200 on the fees. Moral of the story, never take the fine print for granted, and invest in a toll free call.

One more thing, don’t be precipitous in you actions. Evaluate all your relationships and options with your bank. For example, I have a MC with MBNA that has an APR of 17% with a 0 balance that’s doing nothing. I consolidated most of its balance with above card so I can cushion new card’s utilization and take future advantage of 7.9% fixed instead of 17%. And at the same time, I didn’t close the donating MC, for it receives automatic CLIs and has a history.

Now detractors will say, you still incurred a fee. You’re right, but in a emerging era of NO CAP fees on BTs, being charged 1% on a $10K loan which will earn you 5% or more isn’t too shabby.

Author: mouse
Posted: Thu Jul 20, 2006 8:11 pm
Post subject: Re: Do Not Let the Fine Print Dissuade You

Quote:

“fenster”
I was offered a preapproved World Points Platinum Plus card, issued by MBNA for NetBank’s customers. The offer consisted of 0% APR till August, 07 on BTs and advances, thereafter, a fixed rate of 7.9%.

Parsing the fine print, turns out NO CAP on a 3% BT fee. I call MBNA and first try to haggle for a no fee BT on $10K so I can earn 5% on ‘em at my bank. The rep comes back with no deal. Then I impart to him all my other MBNA cards have a Cap of $75 per BT, how about honoring that.

This time out he says how about a flat fee of $100 on the $10K, I say deal; a savings of $200 on the fees. Moral of the story, never take the fine print for granted, and invest in a toll free call.

One more thing, don’t be precipitous in you actions. Evaluate all your relationships and options with your bank. For example, I have a MC with MBNA that has an APR of 17% with a 0 balance that’s doing nothing. I consolidated most of its balance with above card so I can cushion new card’s utilization and take future advantage of 7.9% fixed instead of 17%. And at the same time, I didn’t close the donating MC, for it receives automatic CLIs and has a history.

Now detractors will say, you still incurred a fee. You’re right, but in a emerging era of NO CAP fees on BTs, being charged 1% on a $10K loan which will earn you 5% or more isn’t too shabby.

On my last MBNA BT (like 1.5 weeks ago) I was given the option of 2 choices…

1) PAY THE $75 BT FEE
2) WALK AWAY FROM THE BT

So they are NOT afraid to lose business

IN MY CASE I WOULD HAVE HAD TO PAY OVER $900 FOR A BT FEE

(I have always paid no more than $75)

At one time they were always FREE
(when I did EFT to my checking account)