My partner has had an MBNA account for 9 months. Just received a letter ... they pulled a HARD INQUIRY (not a soft AR review) to review his credit and lowered his limit form $7.5k to $6.4k. This was not done due to any request for a limit increase (although I was about to call them for one). When I called, I got the "balances too high - total should be less than 20% of annual income" line from their analyst. That's a crock ... based on mortgage underwriting standards, his housing ratio is 11% and total debt is 20%. They're penalizing him just for utilizing 0% offers ("free money" I call it). Another great line ... "We look much more closely at credit files, not just scores, to get a total picture of our customers" ... well, isn't that prudent... but if they're so interested in the total picture, why not look at a balance sheet and notice the high 6-figure net worth? Sometimes it's just smart to borrow $5k at 0% and put it into a bond fund earning 8%. What a bunch of #*(@)(*$&@#. I love Chase's online balance transfer system - type in account number, amount, and --zap-- in 3 days the transfer is done electronically. I feel good about only one thing -- with 0% for 9 months, I can rest assured that MBNA made absolutely no money on this account. I know many of you have had good experiences with MBNA, but this really frosted my hind-quarters. I have a pending application with them that I will cancel. I have no use for them. B of A, American Express, Chase, and Fleet have all treated me (us) better. Heck, my Target Visa, Macy's Visa, and Sears MasterCards each have higher limits and keep growing... and offer rewards. And Target has a lower APR to boot! -mj
I called about a month ago to request a lower limit (I'm at 13.99%). They asked me a boatload of questions, then told me that my rate had been increased to 18.99% effective with my next cycle. Before that even happened, my limit was lowered from $13K to $7800. My balance is $7300. My statement just closed on the 18th, and I didn't get the change in terms for the rate, that they said would be included. I don't want to call because I may not be able to control myself. The funny (?) part is I had just transferred $4300 to Chase at 0% days before my limit was cut.
This sounds like a job for PlanetFeedback. Tell them what you wrote here. Tell them to reinstate your CL, remove the hard inquiry or you'll take your business elsewhere. Unfortunately, MBNA has been known to reduce CLs once utilization reaches a certain point...
marci- Normally I would have done that, but 1- 1st rep I talked with was happy to close the account, thank you for your business, buh-bye and 2. The 2nd rep put me through to an analyst who was quite clear about their guidelines. Not worth the time or effort to argue it ... it was easier (and felt better) to transfer the balance to Chase. -mj
LOL, I keep getting MBNA Platinum offers. Every time I get one and carry it around thinking about it, someone posts something like this about them and I shred it. Keep up the good work, hehe.
See, stuff like this irks me. So you get the utilization just enough to a point that you're "invested" in them. Then they lower your limit to a few hundred above the current balance (which slams your credit score once it reports, and keeps BT competitors away) and THEN they raise your interest rate to make doubly sure you'll take forever paying it off. That's extortion! That's why I only put $40 a month on the card and pay it off in cycle. I'm scared to use the card for anything more!
I am in the "I hate MBNA club". A couple of years ago, they lowered my credit limit to EXACTLY what I owed and the interest for that month (not yet added on) put me over limit.....then, they added a $29 overlimit fee!!!! Unfortunately, I was credit ignorant then!! It came at a really horrible time in my life and that little act actually was what started all of my financial problems (yes, I realize I was walking that line with no back up to begin with!). I have one more account to pay off with MBNA and then they will never see another penny of mine again!! My other cc with them ended in a nightmare, but I will spare you that story now!
mj: I totally understand your position. On the one hand, the Quantum 9.99% product seems very desirable (especially since they dumped 2-cycle billing). On the other hand, any income they generate from my (future) account will help finance the banks' lobbying efforts. Plus, they are one of the most score-driven lenders. Every peep in your score could trigger adverse action on their part (as your partner experienced). Saar
They increased my Quantum MC to $14,600 when I activated my replacement card. They lowered both of my Quantum MC and Elite Rewards to 9.9% fixed APR. By the way, I didn't owe higher than $200 on each card. I also have Apple Instant Loan and I paid down one loan. I purchase another computer and I will owe them $2600. They didn't raise any rate or lower my limit. They always said I'm one of the preferred customer. Ron.
A few days ago, called to get Plat Plus 11.99% product reduced to 9,9% and the Rep said cant offer that right now...but said i will give you an CL increase to $9,000 was $6,500....i been getting increases every 3 months only $500 though....i havnt had any problems w/them...i have used 90% of the CL and never an intrest rate increase........the balance is $100 right now...... thanks for the advice....ill will keep you posted.... tony v san diego, ca
I like MBNA. They have been THE nicest credit card (worst being CitiBank). They were nice to me when I was going through repayment problems. Once I pay it all off this is one I plan on keeping.
I too like MBNA! They're my oldest tradeline of about 7 years and have provided me the best service of all the cards I currently have or had (Amex has been good but I only got them about 4 months ago so it's too early to judge). They've lowered my APR every time I've asked and are constantly raising my limit. I even wrote a goodwill letter to them several months ago and they've removed multiple 30 day lates and 60 day lates from my credit report. This of course is not to say that others haven't had different experiences. For example, I HATE Fleet with a huge passion but others like them. I'm only keeping their stupid card open to age the account and I'm charging exactly $0.50 / month in gas on the card just to cost them money <g>.
to MJ - Does your partner have a mortgage on his account? Just trying to figure out of that played any part in the CC games they are playing. (my thought is that they may view a mortgage holder as a better risk.)
MBNA 3.99% BT WITH A "GO-TO" 9.99% HIGHEST LIMIT I HAVE BUT THEY HAVE REFUSED TO INCREASE THE LIMIT IN 6+ YEARS..(INQUIRY FREE).
I've been very pleased with MBNA. They've been extremely generous with cl increases and customer service has always been very nice. I even like the suggestions they make of how to spend the cash advance checks. Even the statements are done on quality paper and are large. They aren't chinsy in anyway--a first class operation in everyway.
KCPaul - we have the mortgage together and it's reported on both reports, so I don't think that was their problem. One thing that the analyst did make clear to me is that they don't really count household income in their equations - it's SALARY that counts. Note on their applications that they do differentiate the two (annual salary is one ?, total hh income is another). How many of you have had hard inquiries made without your initiating a CL increase request? That's what frosted me the most -- 9 months after opening, they pulled a hard inquiry on Experian. So - in one day - they lowered his score (1) with an inquiry and (2) by increasing his utilization ratios through lowering the limit. All without any request for higher credit on his part - and with perfect (5x minimum) payment history and no derogs. Unacceptable business practices, and completely out of line from every other creditor we have (B of A, Citi, Chase, Discover, Fleet, Amex, etc.). When First National (Omaha) pulled a soft inquiry 1 year after opening, they raised the rate 2% (rationale, higher utilization and no other bank relationship i.e. checking, etc). That was understandable- and we parted ways on good terms. This just confirms so much of the "bad" I've seen written about MBNA.
I should have added - despite my fury at their practices and underwriting policies - they were consistently professional, clear, and courteous in every communication. They do have a "first class" customer service, from what I've seen.
I don't blame you for being angry if they did all those things. Personally I've had only good experiences with them. I've had 2 accts with them, one for 5 years and the other for 7 years & they've done frequent A(ccount)R(eviews), but never a hard inquiry.
