MBNA Virgin Credit Card Interest rate

[Redletter]

Hi there I am new to this site. I wonder if you can help me?
I have recently realised that my Virgin MBNA credit card is being charged at 34.9% APR, although on application it was 0% balance transfer for 15 months and typical APR 15.9%.
I have no defaults or CCJ's.
My Experian 'credit expert' rating is an 'excellent 940 out of 1000.
I was given a credit limit of £3000.
I have never been late with or missed a payment.
I have paid regularly by direct debit.
I recently brought this to their attention and they said this is the 'best rate' they can offer me at this time!!!
Is there any way I can find out what their calculation policy is or find out why this rate has been applied to me?
Is there any way I can get it reduced by claiming I am being unfairly treated?

Thanks

[natweststaffmember]

Re: MBNA Virgin Credit Card Interest rate

when did you take the credit card out?

[Paule]

Re: MBNA Virgin Credit Card Interest rate

If your status is as you state, then get a different card with a better rate.

Why bother anymore with them if they wont look after you.

[scoobydoo]

Re: MBNA Virgin Credit Card Interest rate

Even with a good credit rating it is not easy to get a card at the moment. If you try I would be interested to see how you get on.

In my experience anyway.

[Emerald]

Re: MBNA Virgin Credit Card Interest rate

Try egg for another 15 month SBT card. Tesco are the next on the list who don't credit score harshly then post office.

[Redletter]

Re: MBNA Virgin Credit Card Interest rate

Thanks.
I think the problem is that I am near to my credit 'ceiling' as I have a car loan with a balance of about £10,000 and three other cedit cardswith a combined balance nearing around £6,000.
I think I took out the card in August 2007.

I was quite naive in actually lowering my credit limits on my cards a while ago thinking I was being sensible, but it appears I have not done myself any favours by doing this as I have now made myself closer to my available total credit limit!

I recently got knocked back when I applied for 3 months interest free credit at Beaverbrooks through Hitachi credit. The jewellery item was only a few hundred quid but I think this is due to my level of credit rather than any adverse credit problems.

I was actually looking at the Tesco card recently as they have a low APR on long term I think of 6.9%, but what is to stop them winding up the rate in the same way MBNA has?

[Redletter]

Re: MBNA Virgin Credit Card Interest rate

I was actually looking at the Tesco card recently as they have a low APR on long term I think of 6.9%, but what is to stop them winding up the rate in the same way MBNA has?

bump

[Emerald]

Re: MBNA Virgin Credit Card Interest rate

I was actually looking at the Tesco card recently as they have a low APR on long term I think of 6.9%, but what is to stop them winding up the rate in the same way MBNA has?

Depends on what their offer is - if it is for a set period then nothing to stop them after the fixd period ends - but it gives you hopefully a decent amount of time to reduce your debt on a lower intrest rate before they can do that.

[Redletter]

Re: MBNA Virgin Credit Card Interest rate

I was actually looking at the Tesco card recently as they have a low APR on long term I think of 6.9%, but what is to stop them winding up the rate in the same way MBNA has?

bump

[Sapphire]

Re: MBNA Virgin Credit Card Interest rate

I'm not sure about why or how they can wind up the rates to be honest, in fact I believe that there is no way they can increase the rate during the time of the initial offer.
I personally would go for a low interest card and use it for the term of the deal then about 3 months before the end of the deal then apply for another, transferring the debts over as you go along, at least that way you have a good chance of paying off the debts and cutting down on the interest.

[Tools]

Re: MBNA Virgin Credit Card Interest rate

There are also some card lenders that will offer a low(ish) fixed rate APR for the lifetime of the balance. Best thing to do is shop around on one of the comparison sites.

[Emerald]

Re: MBNA Virgin Credit Card Interest rate

I'm not sure about why or how they can wind up the rates to be honest, in fact I believe that there is no way they can increase the rate during the time of the initial offer.

If you make a late payment, go over your limit, or break any other T&C during offer period then they can withdraw the terms of the offer and charge what they like. Most common failure of this is when a 1st DD payment is not made on time due to the time it takes to set it up. Always get the online version and check it is all in order.

[Redletter]

Re: MBNA Virgin Credit Card Interest rate

Is there any point in speaking to MBNA and asking why my rate has been escalated?

[Paule]

Re: MBNA Virgin Credit Card Interest rate

Is there any point in speaking to MBNA and asking why my rate has been escalated?

Haven't you already got the answer to this

I recently brought this to their attention and they said this is the 'best rate' they can offer me at this time!!!

TBH I don't think you will get anymore information out of them, so spend your time & resources finding a better deal.

[Redletter]

Re: MBNA Virgin Credit Card Interest rate

Thanks Pkea I guess I confused the issue what I meant was could I maybe take it higher ie through complaints procedure etc as the person I spoke to was just the 1st point of contact at their call centre.

I guess you are right though but I'm worried that as applying for another card I will mean another search recorded on my credit file, it may do more harm than good.
I'm not sure how the credit scoring works exactly but the more refusals I get might it further escalate my other CC interest rates?