balance transfer survey

Have You Used a Balance Transfer Card? Tell Us About Your Experience!

Last updated on June 12, 2018 Views: 3170 Comments: 2

GreedyRates prides itself on being the leading source of information on how Canadians use credit cards and manage their personal finances. Help us help you by telling us what you think about hot-button financial topics:

Article comments

Jeff North says:

My financial situation was having excellent credit and then finding out my partner had excessive debt unbeknownst to me. I took advantage of MBNA 12 month 0% offer taking out a card for myself and getting my partner to apply for one. The 1% balance fee is nominal compared to store or credit card interest for the year. We transferred her highest interest rate balances to the card and then Gail Oxides style I froze( as in the actual freezer) two of her cards and then set a limit on the last of the cleared cards so she can use it for gas and maintain a history of usage and on time payment to ensure building a better credit score. We then made minimum payment on her balance transfer to my card and focused a repayment plan on her smaller balance transfer with any extra monthly cash going to paying that card off first. Result is savings of over $1000 in interest after eliminating the high interest and cash advance fees and charges. As MBNA gives you some dollar room to still spend above your balance transfer you must lock this card away for the 12 month promo period to make the plan effective and worthwhile and to not create more debt. MBNA will reward you with a lower interest rate card at the end of 12 months if you make all payments on time. This rate is lower than many regular bank cards and certainly store cards. It takes a disciplined approach and a little time with your partner to map out this plan on paper but well worth it.

The GreedyRates Team says:

Hi Jeff!

That is quite a story of financial hardship, and we’re truly impressed with how thorough you’ve been in getting your partner out of debt and on the right track. Nice job! It’s not surprising that you relied on MBNA’s amazing Platinum Plus card to do so, and we appreciate your comment for showing other readers just how useful it can be–for the right purpose. This is another point that you were correct on, as the Platinum Plus card should not be used like normal credit card, and instead as a way to shelter debt exclusively. For cardholders in a financial bind, paying for groceries or withdrawing cash from the card could be dangerous, especially if they aren’t able to make a monthly payment.

Clearly, you had the discipline to use it and deserve that $1,000 or so in interest saved. If MBNA was nice enough to extend your promotion or offer another one, then you should take advantage of it. In the meantime, your partner might benefit from a secured credit card, if you think she can handle it. With a secured card she or you will pay cash up front, and then she has access to a matching amount of credit. She can use this responsibly and see faster results on her credit score, as secured cards like the Home Trust Secured or the Refresh Secured Visa report more frequently to credit bureaus.

Thank you very much,