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Tuesday, 24 May 2016

How to Save $$ on Outstanding Balances on Lines of Credit and Credit Cards

Many people out there pay a lot in interest charges for outstanding balances on their line of credit, credit cards, or are considering putting the debt into the mortgage.  Mistake.  The best deal out there, what I've been doing for YEARS is applying for the MBNA Platinum Plus M/C.  It comes with no annual fee, 0% financing for 12 months, and if you apply through Great Canadian Rebates, you'll get $60 cashback (and through Buytopia.ca you can get a $100 gift card to Amazonca, Starbucks, The Bay, Best Buy or even the evil Walmart (don't get me started about how you'll pay a high price for the low prices--stay away from them, but hat's another post, another day).  Click here to go to sign up with Buytopia.ca if that's the prize you want for a no annual fee card that you can transfer your balance to.  That way I'll get a referral bonus and you'll win too!
You WILL have to pay a 1% balance transfer transaction fee, so basically, you're paying 1% interest up front and nothing for 12 months!
You can even ask MBNA to set up payments of a regular amount coming out every month from your bank account so you won't miss a payment--for if you do--get ready for the deal to end early and start paying 19.99% interest (or something like that).
Warning 1: MBNA will pester  you with snail mail offers for more balance transfers but you'll already be locked into one.  At the end of the year, you need to pay off the balance and then either take an offer that's sitting on your account (your online account with them will show the best offer on the card) or even better, call customer service and see what they can do for you.  For example, they may offer you a 0.99% deal for as many as 15 months, but after they speak to a manager, the manager may have a better offer that cuts the transaction fee for the balance transfer from 2% or 1% in half.
Warning 2: Your credit to debt amortization will suffer, hurting your credit score, but that depends on how much you take out for the balance transfer, how much your credit limit is with them in comparison and how much overall available credit you have "out there" on credit cards.  This time around, I've taken at least a 30 point hit because of my balance that I'm carrying.

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