We use a minimal number of cookies to enhance your browsing experience - you can change your settings at any time.
checkmyfile
The UK's only Multi Agency Credit Report

Take a FREE 30-day no obligation trial. Call 0800 612 0421 9am-5pm, Monday to Friday for help.




  
Forgotten Password? Not a Customer? Sign Up

Cheap money transfer card launched

Posted in 'Personal Finance' by Kevin Pearce

27 July 2012

MBNA has launched a new card that allows new customers to transfer some of their credit card limit into their current account and pay 0 per cent interest for 15 months.

The Fluid card, as it has been named, has been brought to market because apparently there is a demand for such a product from within the UK market.

Will Becker, chief executive of Media Ingenuity says: ‘In conjunction with MBNA, we’ve created a card with an exclusive offer that can yield a substantial saving to consumers. This is a great card for people who are looking to get control of their finances and repay existing balances within the 15-month offer period.”

The APR on the Fluid Card is 15.5%

As always, it pays to check the small print the money transfer must be made within 60 days of opening the account and is subject to a 4 per cent fee.

Although this may seem no different than taking cash out and paying into your account, the fees are actually less than would be charged to do this.

An example of how this would prove beneficial is to clear an overdraft, for example. If your overdraft is interest free, there is no benefit in doing this, but if you are charged a high rate of interest (up to 20% in some cases) it could save you money in the long run. If you were on the verge of incurring penalties, it could be a good way to dig yourself out of that rut.

The interest free period is limited, so ensure you can repay it in the specified 15 month period to take advantage of this.

MBNA has launched similar products in the past and their success has led to the Fluid card with the specific focus on the money transfer to the current account.

The thirst for consumer credit is rising, with the latest figures from the Finance and Leasing Association showing a 9% increase in the amount of consumer credit taken out in April compared to the same month last year.

As a credit management tool, combining a balance transfer (for clearing credit cards on less favourable rates) with the ability to borrow cash (for debts or items that cannot be paid for by credit card) seems like a great idea, but it does tempt the less responsible to transfer money to their current account for non-essential items.

Essentially, as with anything, it is up to the user to act responsibly and take advantage of the greater flexibility offered with money/balance transfer.

For balance transfers to clear other cards (rather than to fund a current account), there are much more attractive deals available. The longest interest free transfer period is available from HSBC – at a very generous 23 months. A fee of 3.3% applies and the APR is 17.9%

Better still, the Barclaycard Extended Balance Transfer card has only a slightly shorter interest free period at 22 months, and a lower fee than the Fluid Card - at 1.45% compared to 1.5%, and an APR of 17.9%.

Kevin Pearce is a Credit Analyst at checkmyfile and has a degree in Media and Cultural Studies. You can contact Kevin at kevin.pearce@checkmyfile.com

Kevin Pearce

Kevin has a degree in Media and Cultural Studies from Southampton Institute. Prior to joining us, Kevin worked in the mortgage industry with GE. He covers several areas of credit and in particular the impact of the credit crunch on consumers.

Kevin is a Credit Analyst at checkmyfile

Related Articles

Gender Pay gap shrinks to record low

Official figures have revealed that the average full time pay gap between men and women has reduced further, bringing it to be at its closest since comparable records began in 1997. The Office for National Statistics (ONS) confirm that in April the difference was 9.4%, compared with 10% a year before. The change is said to be a result of men’s wages dropping faster than women’s in real terms.

George Osborne has commented on the figures, saying that it is "another sign of progress in the fight for equal pay". Better pay, flexible and part-time work, and better paid leave for fathers to encourage equal opportunities for parents could reduce the gap even further.

Other ONS figures have confirmed that growth in wages has been the .....

Full Article

Credit card competition hots up

According to Sainsbury’s latest research into how consumers use credit cards, as many as 15% of people aren’t using 0% credit cards for large purchases. This means that they are potentially paying through the roof in additional, unnecessary interest payments. Those who are paying interest could also be paying less if they took advantage of the emerging class of low APR cards.

Within its research, Sainsbury’s suggest that borrowers could be paying as much as £268.36 in interest on balances of £2,000 on an 18.9% APR card over an 18 month basis, in comparison to one of the many cards offering 0% on purchases.

In recent weeks, there has been a number of new credit cards added to the market, with the aim of enticing consumers wit .....

24 Nov 2014 by

George Coburn

 in 

Personal Finance

Full Article

Shoppers set to wait for Christmas bargains

Christmas shoppers may have to play the game of ‘chicken’ with high street stores this year to get the bargain gifts they want

24 Nov 2014 by

Rebecca Stains

 in 

Personal Finance

Full Article

Accepted Payment Methods: VISA, MasterCard and Direct Debit

© Copyright Credit Reporting Agency Ltd 2000 to 2014. All Rights Reserved.

United KingdomAustraliaGive Me Credit United States

Customer Feedback