The fine print about the interest rate reads, "A 'fixed' APR will not vary in accordance withh changes in a formula, such as the U.S. Prime Rate. MBNA reserves the right to change the APR in accordance with the CC agreement and the laws of the state of Delaware and the Fed truth in Lending Act." Sounds to me like a truly fixed rate unless I pay late, go over balance, etc. It clearly states this is on BT and new purchases. Anyone disagree? Just suspicious since I've not heard of a fixed rate that low before. Thanks.
Yup, wife got this offer from MBNA today in mail and I read it closely. It is a 6.9% fixed rate Worldpoints Platinum MC with no annual fee!
All "fixed" means is that it does not fluctuate up and down as prime does. Other than that, they can and will change it at their discretion. You do not have to violate any terms of your agreement with them. They will raise it if they think you are utilizing too much of your credit or late on other cards.
I WAS TOLD I COULD GET A LOWER RATE (7.90%) WHEN I PAID THE ACCOUNT OFF... SORRY CAN'T DO THAT...DO YOU WANT TO APPLY??? I WAS TOLD I COULD TRADE FOR AAA AND/OR AMTRACK... SORRY CAN'T DO THAT...DO YOU WANT TO APPLY??? I WANT TO CLOSE THE ACCOUNT... SORRY YOU DON'T WANT TO DO THAT... I'M NOT EVEN GONNA' TRY TO GET A "GO-TO" OF 6.90% WHEN I CAN'T EVEN GET 7.90% ...any-way I'm PAYING OFF 5.90% DISCOVERCARD...then CITIBANK 4.90%
Here is my most recent experience with MBNA and their rates: I had some late pays and they closed my account and increased my rate over a year ago. This was fair because I agreed to these terms. After paying MBNA down by about one third and paying another card off entirely, they re-open the account and lower the rate slightly. They didn't have to do this and I was appreciative. This was one year ago. During the past year I paid down the balance and have made timely payments on all open accounts that I have. I have purchased a new car, purchased a house and increased my FICO by 100 points. I called MBNA on Friday and asked if I was eligible for an APR reduction - currently at 18.99. I am told that my rate was just increased and I should be receiving a letter about this. I ask why and they advised that it is because of late pays on my report. I ask whether I have paid MBNA late in the past year and she confirms I have not. I ask whether I have paid any other creditor late in the last year and she confirms that I have not. I ask her to confirm that I have done everything right for the last year and she confirms that I have. So I am being rewarded for my excellent performance over the last year with a rate increase? Yes, but continue to do what you are doing, she says. (I should have asked whether this was so they could increase my rate again). After more discussion she then reviews the account and graciously agrees to cancel the APR increase. I will pay MBNA to zero as quickly as possible and maintain the account only for its age.
As I've said many times, MBNA is at the top of my "do not do business with" list. When a card I had was sold to MBNA, I paid it off as soon as possible and closed the account. They will jack your rate and lower your credit line "just because." In some cases, they don't seem to have good reason--or even a reason at all!!
Thanks for the input. Who would be your preferred MC or Visa Company? I've had Citibank since '89, but can't get them to go below 10.9% fixed. I do want fixed so it doesn't float with prime.
Most of my business is with Citi, FirstUSA (Bank One) and Bank of America. I haven't worried about getting APR lowered. The BofA and FirstUSA get paid in full every month, so who cares if it's 50%? The Citi cards are tied up with 3.9% and 5.9% BTs, so they won't be paid for a while. Don't be deceived--"fixed" only means that it's fixed until they change their minds and give you the required amount of notice to raise it. Right now the variable may give you a better deal. I have an unsecured LOC (now paid off) that varied, and it stayed WAY below my cards, even when rates were high. I've had it for 20 years or more, and it's never been a bad deal.
