As a rewards card junkie, the last thing I care about when comparing credit card features is the interest rate. I just want to know how much cash back or travel points I’m going to receive based on my spending. At the end of the month, I’ll pay off my balance in full.
But for some people who carry a credit card balance from month-to-month, a good rate can save you hundreds of dollars in interest payments each year.
If you have a good credit rating but you regularly carry a balance, or you can’t pay your balance in full all the time, you should consider the MBNA TrueLine MasterCard.
MBNA TrueLine MasterCard
MBNA TrueLine is marketed as an everyday credit card for everyday people. It comes with one of the lowest interest rates on balances. With a 9.99% interest rate and no annual fee, the MBNA TrueLine MasterCard is one of the best options for people who carry a balance on their credit card. Here are some other features of this card:
- 9.99% annual interest rate on all your purchases
- No annual fee
- Exclusive Platinum benefits and peace of mind
- Add authorized users at no additional cost
- Around the clock fraud protection
- Enhanced security and protection with Chip & Pin technology
Platinum card benefits
With the MBNA TrueLine MasterCard, you’ll get exclusive Platinum benefits from MasterCard and MBNA. When you have questions or concerns about the terms, conditions and policies of your card, MBNA and MasterCard can help.
- 24- hour customer service
- 1 hour Credit Line Increase Decisions
- Cash Advance Emergency Card Replacement (7-10 days)
- Emergency Cash through Western Union
- Emergency Cash Transfer (up to 5,000)
Final Thoughts
You shouldn’t carry a credit card balance. But if you’re the sort of person who does, or you’re digging your way out of credit card debt and have no other options, consider switching to a low interest credit card. You’ll pay less interest using cards like the MBNA TrueLine MasterCard.
Low rate credit cards are usually a better option than balance transfer credit cards, which are designed to lure customers in with a promotional rate for a short period of time before the rate jumps up to 20 per cent.
MBNA Canada has a solid line-up of credit cards ranging from cash back and travel rewards, to low interest rate and balance transfer cards. While this site is dedicated to helping you find the best rewards in Canada, it’s important to recognize that a rewards credit card is not the best fit for some people.
If you carry a credit card balance from month-to-month, consider a balance transfer credit card like the MBNA Platinum Plus MasterCard. This card offers 0% interest for the first 10 months, and doesn’t have an annual fee.
MBNA Platinum Plus MasterCard
A balance transfer credit card can be a great deal if you use it to your advantage. The 10-month interest free period offered by cards like MBNA Platinum Plus can give you the time you need in order to control your spending and pay down your debt. Here are some other features you can get with the MBNA Platinum Plus MasterCard:
- no annual fee
- 0% interest for first 10 months
- 17.99% interest on purchases
- 19.99% interest on cash advances
You’ll also receive the following card benefits:
- 24 hour customer service
- Emergency cash transfers up to $5,000
- Emergency card replacement
- Purchase assurance coverage
- Extended warranty coverage (doubles manufacturer’s warranty up to 1 year)
How much interest can you save?
I don’t carry a credit card balance, but if I did, here’s how I would use a balance transfer card like the MBNA Platinum Plus MasterCard to my advantage.
First, I would only use a balance transfer card once I had complete control of my spending on both my old and new credit card. If you can’t stop piling on the debt, you’ll be in even more trouble when the interest free period expires.
Second, I would take my credit card with the highest balance and highest interest rate and transfer as much as I can over to the MBNA Platinum Plus MasterCard.
Let’s assume you carry a $5,000 balance on your standard credit card with a 19.99% interest rate. Transfer that balance to the MBNA Platinum Plus MasterCard put $500 a month toward repaying your debt with the goal to eliminate it before the 10-month interest free period expires.
The same repayment schedule on the card with the standard 19.99% interest rate will take you two months longer and cost you $515 in interest charges (instead of $0).
Final Thoughts
Balance transfer cards like the MBNA Platinum Plus MasterCard can be used as a tool to reduce credit card debt. With an introductory offer of 0% interest on balance transfers, more of your money goes towards paying off the principal instead of just the interest.
Just make sure you don’t fall back into your old spending habits and start piling the debt back on.