MBNA is the 3rd largest credit card provider in The Republic of Ireland. It plans to offer its customers and new potentials a 0% for the first ten months platinum credit card.
Other card providers in Ireland are moving away from these interest free credit card deals as the market conditions remain dire.
In todays market, credit card interest rates average an astonishing 18.6%, this is why MBNA Ireland introducing a new card with 0% for the first 10 months on balance and money transfers is a pretty big deal.
Other card providers are finding it increasingly difficult to compete with such an offer that is being dubbed “the smart choice for competitive interest rates”.
The economy has a low base rate, however interest rates have still been climbing steadily and as a result there is a low cost to the banks to borrow from the state, but high cost for us to borrow from the banks! This leaves a nice little profit stream for the big wigs. MBNA Ireland has decided to pass on these profits to its consumers with the low APR credit card deals on offer online. Other banks have tried to justify the increase in interest rates as a means for them to recuperate losses incurred as a result of the payment protection insurance (PPI) ongoing debacle.
MBNA has a massive 7 million customers across Europe, and so can afford to make such decisions. It also gives us peace of mind that they are big enough to stand tall through economic downturns such as the one we are in. This trust is extremely important to borrowers as we don’t want to get stung when it comes to matters of money, but we still like to save where we can, especially if we are facing a huge amount of bad debt due to the recession.
Most lenders have increased their interest rates over the last month by an average of 6%! How can they expect us to stay with them after this? If you have a direct debit set up, and pay off your full balance in full every month, you have nothing to worry about, if however you can’t afford to then this figure alone is enough to get you to switch lender to a 0% interest for 10 months with a low APR overall!