I got this in the mail today. Basically, it is for people who have a lot of debt and want to consolidate it. It is a line of credit rather than a credit card. It guarantees approval for at least $500. Can go as high as $25,000. APR is from 8.9% to 24.99%. I qualify. I need to consolidate debt. MBNA has been reasonably good to me in the past. My balances are high and I could stand some consolidation, but only if it is a reasonable APR. Everything is current and I have always paid on time, but balances are high. But, they claim they have already pulled a soft inquiry to make sure I qualified. Has anyone tried this? Wit a score in the 680 range, is it worth the time to bother? Do you know what their approval criteria are? Is my score good enough for at least $10,000? And more importantly, how do they figure out where you fit in the APR range? I know it is based on income, debt ratio, score, etc., but do you think I can get it at a reasonable level with my score? And, they want work phone number. I am self employed. Do they verify income? If you have dealt with MBNA on this product, I would be interested in hearing your experiences. I will call them tomorrow, but wanted to be prepared before I do. I am credit challenged (high balances, too many cards). But this is specifically martketed to the credit challenged. I am gradually paying down credit balances, but sure could use a lower APR. So, this will only help me if I can get a decent APR. Thanks
There's a major minus in this plan that they don't tell you about. It will post to your credit bereau reports as an unsecured loan which is considered a "baddie". It will definitely lower your scores but by how much, I don't know. If it's your best shot and reducing your debt though, it might be worth it. If you do go that route, may I suggest your credit cards enjoy the winter in your sock drawer?
The credit cards have been sitting in the sock drawer for 18 months. This is an old problem that has not gotten any better because I have not found a solution. Anyone else with any experience with this particular program? I plan to call them today or tomorrow, but would appreciate any input before I do.
BTW, all credit card debt is unsecured, so another loan won't be as bad, as long as you use it to payoff existing debt and do not use the cards that you pay off. www.creditsense.com
Karen, MBNA offered me 15.9% on a LOC. If you qualify for the LOC you will also qualify for the cards at MBNA. All of my scores are 700+. In addition they wanted 2 years taxes, financial statements and some other documentation after they called me and told me I was approved. I'd try for some of the 0% deals or a lower rate. Try to get the lowest rate possible.
Why would an unsecured loan be bad? They don't give those to people with bad credit. You have no assets backing the loan, just your signature. The bank must trust you alot to do that.
