Does MBNA credit card company use Vantage Score?
Guest: bullwinkle29
Credit Expert (100+ Posts)
Post subject: Does MBNA credit card company use Vantage Score?
Posted: Fri Sep 15, 2006 7:59 pm
i am a new cust to MBNA, they started my CL last month at $12,600. they pulled my experian report. my experian score is 736. they also locked my % in at 7.9. when i pull my Experian Vantage score, it's 861, =prime + =B.
My question is does MBNA use vantage Score?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: Bikshu
Posted: Sat Sep 16, 2006 1:58 am
Quote:
I really like your responses. They're very informative, and I really appreciate them. You bring a lot to the board, and I want to thank you, especially as a relatively new MBNA customer.
Ok, I have question. This whole "rate surfing" issue has me confused.
I've never transferred a balance, but will likely do soon. My intro period on my Amex Blue is expiring, and it's going to be set at 18 percent. I called and asked for a reduction, but they said no.
Meanwhile, I have my brand new MBNA card that's at 0 percent balance transfers for a year.
Why SHOULDN'T I transfer the balance to MBNA? This all has me confused. Why should I should keep a $1500 balance with Amex at 18 percent when I can transfer it to MBNA at zero percent?
Again, I'm confused by all of this, as I've never transferred a balance before. This whole "rate surfing" thing has me weirded out. If companies don't like for us to rate surf (and if they lose money on BT's) why offer teaser rates?
And, is it wrong to occassionaly call a credit card company to ask for a lower APR? I thought that was normal? (FYI: My MBNA is 7.9 fixed and I love it)
Again, thanks for your help.
First of all, thank you I appreciate your kind words. Second, its my pleasure. If I can ever help, I'll try. If I can't, someone else here assuredly can. And if we are all stumped by something, I can always try to grill someone at work for the answer....
Now onto the good stuff:
I'll tell you what I said in another thread: Don't you worry one iota about rate surfing. Its really nothing to concern yourself with unless you do a very heavy amount of promotional rate transfers. 99.9% of Americans have never even heard of the term, and they are right not to lose any sleep over it. I just pointed it out as one more aspect that banks use to get a feel for what you are doing with their money. That's all. Above all else remember one thing: using credit should be fun! After all, you get to use someone else's money. If you let credit become a worrisome chore, then you probably aren't using it properly...
Thus, the answer to your question is please please please transfer that balance off of your AmEx! Seriously, I'm begging you. If you leave that balance with AmEx, once your 0% runs out you will be paying approximately $22.19 in finance charges that you do not need to pay. Get it to another 0% and pay that sucker off. Now as you are new to the transfer arena there are three things to keep in mind that all of the seasoned vets here would want you to know before you transfer anything.
1. Be aware of and fully understand if any transaction fees are involved in your BT. I can tell you right now that if you transfer it to your MBNA account, we will charge you a 3% BT fee with a minimum of $10. In the case of a $1,500 BT we will charge you $45 for the transfer. This is a one-time fee that appears on your first statement, and even that fee will be at the same 0% interest rate. But it is there nevertheless so be aware of it. By my calculations, through saving $22 in finance charges monthly with the BT, that $45 will have paid for itself in just about two months. And every month after that you will have saved yourself $22 in interest. This makes good financial sense if you think that you need four months or longer to pay off that $1,500 balance. And you might consider looking to another bank to handle this BT for you, as there are still some banks that don't charge you any BT fee... in which case you even save that $45 dollars.
2. Be aware of and fully understand what is called the "Payment Allocation Method." This is a quite convoluted standard bank policy that I believe every bank in the galaxy has. What this policy means is that once you do the BT, any money you send to the bank from then on (meaning any payment you make) will be credited ONLY TO THAT 0% APR BT BALANCE. Your regular retail purchases (stores, gas stations, restaurants, etc.) will keep accruing interest that their regular 7.90% APR. You will not be able to pay these regular purchases off until one of two things happens: 1. you have completely paid off your BT balance or 2. your 0% promotional rate expires. Thus, most of the folks here (myself included) highly recommend that you always keep your regular shopping on a different account from your BTs. If you plan to use your MBNA for shopping (and obviously we the bank hope you do) I would suggest opening a brand new account. Use the new account just for the BT and lock the actual card away in a safe place until you've paid off the account. Alternatively, if you plan to use MBNA for the BT I would suggest opening a new account for your store shopping. Or maybe just stick to your debit card for shopping for the time being until you've paid MBNA off. Either way, keep those suckers seperate!
3. This is an easy one. Don't be late or go over your credit limit on whichever card you decide to use for your BT. Obviously, its never a good thing to be late on any card period... but even moreso on an account with a promotional rate. Because the second your account goes delinquent, the 0% promo rate will be removed (in addition to the dreaded late fee of course). So I always recommend that my clients setup an automatic montly payment to their account to guarentee this problem doesn't happen. You can setup an auto pay through MBNA's website, or you can have the bank that manages your checking account set it up for you. Either way, you will assure yourself of no late fees, the 0% will be on lock-down for you, and its always a great thing for your credit report.
All in all, BTs are a very powerful tool you can and should use to help prevent paying high interest rates if you ever need some time to pay something off. You have to play by the bank's rules, but the rules really are not that difficult to learn and master. Once you get good at it, you can really have some fun with BTs and even make a quick profit off the banks if you play your cards right!!!
Also, by all means call every bank every chance you get to ask for a better interest rate. We at MBNA will do one "rate review" with you every six months, but only if you call in and ask us to. There is always the chance your bank won't lower the rate, but there is absolutely zero harm in trying. If the analyst says no, big deal. Ask again in a month or two. If they say yes, your golden....
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: Bikshu
Posted: Sat Sep 16, 2006 2:40 am
Quote:
will i be pegged as a rate surfer? you tell me what you think...
i was accepted for BOA World Points and MBNA World Points with an initial $3,500 and $2,500 CL respectively. both 0% for 12 months. i received the BOA world points card first and made a BT that nearly maxed it out. i read on here that MBNA was loose with CLI's so i figured since BOA bought out MBNA or rather they are merging BOA would be the same way.
I clicked the online LUV button which actually takes you to an online form to request what you would like your increase to be and some other info like salary and other verifications. within 10 hours my CL went from $3,500 to $6,000, which is how much i requested..granted in hindsight maybe i should have asked for $10K since i wasnt given another CLI. i then merged the MBNA world pts onto this card to give me a $8500 CL. Then i immediately applied for a MBNA elite rewards card. got it in the mail with aCL of $5,000. i dunno what i did or if i tricked any computer system but thats a lot of transactions in a 15 day span.
I am also in the middle of CC hopping once all my BT rates expire.
so i wonder would i be considered a rate surfer?
I'm going to cut and paste what I posted above simply because I don't feel like retyping it again. Sorry, I don't mean any disrespect... I'm just lazy
Don't you worry one iota about rate surfing. Its really nothing to concern yourself with unless you do a very heavy amount of promotional rate transfers. 99.9% of Americans have never even heard of the term, and they are right not to lose any sleep over it. I just pointed it out as one more aspect that banks use to get a feel for what you are doing with their money. That's all. Above all else remember one thing: using credit should be fun! After all, you get to use someone else's money. If you let credit become a worrisome chore, then you probably aren't using it properly...
Also just as a sidenote: shifting around and increasing your existing credit lines is no problem whatsoever... at least with MBNA/BOA. Its perfectly allowed, perfectly normal, and we are happy to do it. I don't even consider that a transaction... its merely reorganizing what you've got. I consider it to be good financial housekeeping.
As another side note just for your amusement: technically speaking both of your WorldPoints cards were MBNA cards to begin with. BOA reps have not started managing any WorldPoints accounts as they don't have the computer systems in place to track or manage your points. Heck, they can't even see either of those accounts yet. Not until October 22nd at least... at which point all reps will be able to see all accounts. If one card really was BOA and the other really was MBNA, you would not have been able to consolidate the credit lines until that October date. Its simply that we can send out a card with either logo on it depending on when a person applied for their account and on how they applied for it (i.e. through MBNAs website versus through BOAs). And our reps are very good at wearing multiple hats: if you call in on the MBNA card we will say thanks for banking with MBNA, if you call in on the BOA we will say welcome to BOA, if you call in on an LL Bean card we will thank you for shopping LL Bean, etc. MBNA built its fortune by being a master of disguise. Anyway, after that rapidly approaching October date we will no longer issue any card with the MBNA logo any more. If you already were aware of all of this, then sorry to bore you...
Finally, congratulations on the CLI and and the consolidation of lines! It sounds as if you have a good handle on how to make credit work for you. Keep it up!
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: spjoink
Credit Expert (100+ Posts)
Posted: Sat Sep 16, 2006 3:14 am
Bikshu,
Your posts are simply amazing , the best i have seen on this board in a very long time<
I just want to say THANK YOU!
Spjoink
_________________
Den eneste Norske Viking pa dette forum!
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Credit Expert (100+ Posts)
Post subject: Does MBNA credit card company use Vantage Score?
Posted: Fri Sep 15, 2006 7:59 pm
i am a new cust to MBNA, they started my CL last month at $12,600. they pulled my experian report. my experian score is 736. they also locked my % in at 7.9. when i pull my Experian Vantage score, it's 861, =prime + =B.
My question is does MBNA use vantage Score?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: Bikshu
Posted: Sat Sep 16, 2006 1:58 am
Quote:
I really like your responses. They're very informative, and I really appreciate them. You bring a lot to the board, and I want to thank you, especially as a relatively new MBNA customer.
Ok, I have question. This whole "rate surfing" issue has me confused.
I've never transferred a balance, but will likely do soon. My intro period on my Amex Blue is expiring, and it's going to be set at 18 percent. I called and asked for a reduction, but they said no.
Meanwhile, I have my brand new MBNA card that's at 0 percent balance transfers for a year.
Why SHOULDN'T I transfer the balance to MBNA? This all has me confused. Why should I should keep a $1500 balance with Amex at 18 percent when I can transfer it to MBNA at zero percent?
Again, I'm confused by all of this, as I've never transferred a balance before. This whole "rate surfing" thing has me weirded out. If companies don't like for us to rate surf (and if they lose money on BT's) why offer teaser rates?
And, is it wrong to occassionaly call a credit card company to ask for a lower APR? I thought that was normal? (FYI: My MBNA is 7.9 fixed and I love it)
Again, thanks for your help.
First of all, thank you I appreciate your kind words. Second, its my pleasure. If I can ever help, I'll try. If I can't, someone else here assuredly can. And if we are all stumped by something, I can always try to grill someone at work for the answer....
Now onto the good stuff:
I'll tell you what I said in another thread: Don't you worry one iota about rate surfing. Its really nothing to concern yourself with unless you do a very heavy amount of promotional rate transfers. 99.9% of Americans have never even heard of the term, and they are right not to lose any sleep over it. I just pointed it out as one more aspect that banks use to get a feel for what you are doing with their money. That's all. Above all else remember one thing: using credit should be fun! After all, you get to use someone else's money. If you let credit become a worrisome chore, then you probably aren't using it properly...
Thus, the answer to your question is please please please transfer that balance off of your AmEx! Seriously, I'm begging you. If you leave that balance with AmEx, once your 0% runs out you will be paying approximately $22.19 in finance charges that you do not need to pay. Get it to another 0% and pay that sucker off. Now as you are new to the transfer arena there are three things to keep in mind that all of the seasoned vets here would want you to know before you transfer anything.
1. Be aware of and fully understand if any transaction fees are involved in your BT. I can tell you right now that if you transfer it to your MBNA account, we will charge you a 3% BT fee with a minimum of $10. In the case of a $1,500 BT we will charge you $45 for the transfer. This is a one-time fee that appears on your first statement, and even that fee will be at the same 0% interest rate. But it is there nevertheless so be aware of it. By my calculations, through saving $22 in finance charges monthly with the BT, that $45 will have paid for itself in just about two months. And every month after that you will have saved yourself $22 in interest. This makes good financial sense if you think that you need four months or longer to pay off that $1,500 balance. And you might consider looking to another bank to handle this BT for you, as there are still some banks that don't charge you any BT fee... in which case you even save that $45 dollars.
2. Be aware of and fully understand what is called the "Payment Allocation Method." This is a quite convoluted standard bank policy that I believe every bank in the galaxy has. What this policy means is that once you do the BT, any money you send to the bank from then on (meaning any payment you make) will be credited ONLY TO THAT 0% APR BT BALANCE. Your regular retail purchases (stores, gas stations, restaurants, etc.) will keep accruing interest that their regular 7.90% APR. You will not be able to pay these regular purchases off until one of two things happens: 1. you have completely paid off your BT balance or 2. your 0% promotional rate expires. Thus, most of the folks here (myself included) highly recommend that you always keep your regular shopping on a different account from your BTs. If you plan to use your MBNA for shopping (and obviously we the bank hope you do) I would suggest opening a brand new account. Use the new account just for the BT and lock the actual card away in a safe place until you've paid off the account. Alternatively, if you plan to use MBNA for the BT I would suggest opening a new account for your store shopping. Or maybe just stick to your debit card for shopping for the time being until you've paid MBNA off. Either way, keep those suckers seperate!
3. This is an easy one. Don't be late or go over your credit limit on whichever card you decide to use for your BT. Obviously, its never a good thing to be late on any card period... but even moreso on an account with a promotional rate. Because the second your account goes delinquent, the 0% promo rate will be removed (in addition to the dreaded late fee of course). So I always recommend that my clients setup an automatic montly payment to their account to guarentee this problem doesn't happen. You can setup an auto pay through MBNA's website, or you can have the bank that manages your checking account set it up for you. Either way, you will assure yourself of no late fees, the 0% will be on lock-down for you, and its always a great thing for your credit report.
All in all, BTs are a very powerful tool you can and should use to help prevent paying high interest rates if you ever need some time to pay something off. You have to play by the bank's rules, but the rules really are not that difficult to learn and master. Once you get good at it, you can really have some fun with BTs and even make a quick profit off the banks if you play your cards right!!!
Also, by all means call every bank every chance you get to ask for a better interest rate. We at MBNA will do one "rate review" with you every six months, but only if you call in and ask us to. There is always the chance your bank won't lower the rate, but there is absolutely zero harm in trying. If the analyst says no, big deal. Ask again in a month or two. If they say yes, your golden....
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: Bikshu
Posted: Sat Sep 16, 2006 2:40 am
Quote:
will i be pegged as a rate surfer? you tell me what you think...
i was accepted for BOA World Points and MBNA World Points with an initial $3,500 and $2,500 CL respectively. both 0% for 12 months. i received the BOA world points card first and made a BT that nearly maxed it out. i read on here that MBNA was loose with CLI's so i figured since BOA bought out MBNA or rather they are merging BOA would be the same way.
I clicked the online LUV button which actually takes you to an online form to request what you would like your increase to be and some other info like salary and other verifications. within 10 hours my CL went from $3,500 to $6,000, which is how much i requested..granted in hindsight maybe i should have asked for $10K since i wasnt given another CLI. i then merged the MBNA world pts onto this card to give me a $8500 CL. Then i immediately applied for a MBNA elite rewards card. got it in the mail with aCL of $5,000. i dunno what i did or if i tricked any computer system but thats a lot of transactions in a 15 day span.
I am also in the middle of CC hopping once all my BT rates expire.
so i wonder would i be considered a rate surfer?
I'm going to cut and paste what I posted above simply because I don't feel like retyping it again. Sorry, I don't mean any disrespect... I'm just lazy
Don't you worry one iota about rate surfing. Its really nothing to concern yourself with unless you do a very heavy amount of promotional rate transfers. 99.9% of Americans have never even heard of the term, and they are right not to lose any sleep over it. I just pointed it out as one more aspect that banks use to get a feel for what you are doing with their money. That's all. Above all else remember one thing: using credit should be fun! After all, you get to use someone else's money. If you let credit become a worrisome chore, then you probably aren't using it properly...
Also just as a sidenote: shifting around and increasing your existing credit lines is no problem whatsoever... at least with MBNA/BOA. Its perfectly allowed, perfectly normal, and we are happy to do it. I don't even consider that a transaction... its merely reorganizing what you've got. I consider it to be good financial housekeeping.
As another side note just for your amusement: technically speaking both of your WorldPoints cards were MBNA cards to begin with. BOA reps have not started managing any WorldPoints accounts as they don't have the computer systems in place to track or manage your points. Heck, they can't even see either of those accounts yet. Not until October 22nd at least... at which point all reps will be able to see all accounts. If one card really was BOA and the other really was MBNA, you would not have been able to consolidate the credit lines until that October date. Its simply that we can send out a card with either logo on it depending on when a person applied for their account and on how they applied for it (i.e. through MBNAs website versus through BOAs). And our reps are very good at wearing multiple hats: if you call in on the MBNA card we will say thanks for banking with MBNA, if you call in on the BOA we will say welcome to BOA, if you call in on an LL Bean card we will thank you for shopping LL Bean, etc. MBNA built its fortune by being a master of disguise. Anyway, after that rapidly approaching October date we will no longer issue any card with the MBNA logo any more. If you already were aware of all of this, then sorry to bore you...
Finally, congratulations on the CLI and and the consolidation of lines! It sounds as if you have a good handle on how to make credit work for you. Keep it up!
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: spjoink
Credit Expert (100+ Posts)
Posted: Sat Sep 16, 2006 3:14 am
Bikshu,
Your posts are simply amazing , the best i have seen on this board in a very long time<
I just want to say THANK YOU!
Spjoink
_________________
Den eneste Norske Viking pa dette forum!
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
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