I have an MBNA Reward card, I haven't used it for a few months, but I have a promotion stating that anything bought in november and december will be at 0.0% p.a until the may 2009 statement date, so I've started using it again.
I remember that the minimum payment in july was 10.
Now it seems that they are asking for a minimum payment of 25.
It seems a big rise, not a problem for me, but I wonder why such a big rise and if it's happening across the board, I don't seem to have such payment rises with my other credit cards.
A friend of mine has had his Halifax credit card minimum payment reduced to 1%.
It barely covers the interest.
Credit cards should have a decent sized minimum payment, so I think MBNA are right to raise it.
I have an MBNA Reward card, I haven't used it for a few months, but I have a promotion stating that anything bought in november and december will be at 0.0% p.a until the may 2009 statement date, so I've started using it again.
I remember that the minimum payment in july was 10.
Now it seems that they are asking for a minimum payment of 25.
It seems a big rise, not a problem for me, but I wonder why such a big rise and if it's happening across the board, I don't seem to have such payment rises with my other credit cards.
It used to be 25 since i applied the card (2007), but they reduced to 10 this year and recently, they decided to revert back to 25.
A friend of mine has had his Halifax credit card minimum payment reduced to 1%.
It barely covers the interest.
Credit cards should have a decent sized minimum payment, so I think MBNA are right to raise it.
What about people that are stoozing?
MBNA had a mixture of minimum payment options across their cards...5, 10, 25.
They then took the LESSER of 2.25% and 'interest + PPI + fees* + charges + 5/10/25' (as appropriate to the card).
Over the last year or two they started to bring everyone into line on 25 and then in September this year changed the wording to the GREATER of 25 and 'interest + PPI + charges + 5'.
It's still a good bit less than other cards, so you should pay more wherever possible (unless you have a 0% or other low rate of course and/or you're snowballing or you're stoozing).
* They've removed fees (ie BT fees) from this calculation now, meaning even the first minimum payment following a BT is only 25.
What about people that are stoozing?
What about them ? They'll just have to pay a bit more.
Stoozing is alive & well at MBNA!
Just tonight sorted out my latest stooze on a Virgin Atlantic card (replacing the one I cancelled a couple of months ago as they wouldn't give me a deal)
21,600 @ 95% to my current account for the best part of 7 months, 25 min payment. 50 fee.
Thanks very much Mr. Bernanke!
Higher minimums are better in the long term. Some of these rate encourage people to take 40-60 years to pay back debts !
( Stoozers aside that is )
As I said, it doesn't bother me, I usually pay back more than 25 every time, whatever the minimum payment is.
But, if they change the minimum payment from 10 to 25, I can see that some people will have difficulties to be able to pay it.
Especially now, when people are more and more squeezed moneywise.
It's still a good bit less than other cards
I have a few other cards, the minimum payment is far less on all of them, that's why I was wondering if other cards will follow suit.
What other cards are charging more?
Just been caught out by this. Been paying 10 minimum payment for 3 months on 0% 'til Feb. Just received statement with 12 charges + interest and note stating I've broken contract so will have to pay interest on balance. Contacted MBNA yesterday Very unsympathetic and they stated a change of terms letter was sent out in June. I don't apear to have received this. Spoke to them today and after 10 minute wait on phone they finally found a copy which they are posting to me. Asked when this increase came into force and was told they couldn't tell me. Have spent points earned, paid off balance and cancelled card! No more MBNA for me!:mad:
Yes, that's another thing. If you are paying by DD and you pay less than 25, without being told by MBNA, you get in trouble. Which is unfair.
I keep all correspondence from MBNA, and never had a letter from them to tell me of the changes.
I check my statements every week as I am not paying by DD, but I guess that the ones paying by DD just don't check their statements as often, secure that the payment will be made.
Every card holder is sent a letter whenever there is a change in the terms and conditions of the account. Ask whoever you speak to to check the notes. it is automaticly imprinted into your accounts history.
On top of this it tells you on your statement. If you don't read your statement it is not a bank error if you fail to make your minimum payment
Loyalty said :
Every card holder is sent a letter whenever there is a change in the terms and conditions of the account.On top of this it tells you on your statement. If you don't read your statement it is not a bank error if you fail to make your minimum payment
No one has mentioned bank error, but sometimes MBNA do not send the letters they say they will send, I never had the letter of closure for the other account I had with them, and they did say they will send one when I called them to close the account, though it does say online that the account is closed.
It is not a problem to me, as I said I check my active accounts online every week as I don't pay by DD and I've never missed a payment so far, and it's a good thing anyway to check regularly for dodgy transactions, but can be a problem for people who feels secure that the minimum payment will be paid anyway by DD and don't check their account as regularly.
I was just curious to know if it was across the board and if other cards will follow suit.
Credit cards should have a decent sized minimum payment, so I think MBNA are right to raise it.
True, but such a sudden big rise can get some people into unmanageable debts......
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