Pay no fees at home or abroad with this new low rate credit card

If you’re already planning next year’s holiday, there’s a new credit card on the market which could be the perfect fit for your wallet.

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The basics

MBNA’s new Everyday Plus American Express credit card charges no fees on foreign transactions or cash withdrawals in the UK or abroad, making it ideal if you want to use it overseas.

On top of that, there are no fees on balance transfers or money transfers (where you transfer money from your card to your current account).

The card also has a low representative rate of 7.4% APR (variable)* which applies to balance transfers, money transfers, purchases and cash withdrawals.

This competitive APR means the MBNA card now beats the Halifax Clarity card which has been hailed as one of the best credit cards for using overseas – it also charges no fees for foreign transactions or cash withdrawals, but has a much higher representative rate of 18.9% APR (variable)**.

Is this for you?

If you’re looking for a credit card that won’t hit you with a raft of fees when you spend on it abroad, the MBNA credit card could be a great option.

It’s also worth looking at if you want to carry out a balance transfer or money transfer, but don’t want to pay the expensive fees that are attached to some of the top interest-free balance transfer or money transfer cards on the market.

For example, while the Virgin Money Balance Transfer credit card offers a competitive 37 months at 0% on balance transfers and money transfers, it comes with a fee of 2.79% for balance transfers and 4% for money transfers.

On a debt of £3,200, that works out to be £89.28 and £128 respectively. (But do remember you’ll pay no interest for the first 37 months with the Virgin card, while you’ll pay a representative rate of 7.4% APR variable with MBNA.)

The Virgin card has a representative rate of 18.9% APR (variable)***.

This card is unique in charging no fees on balance transfers, money transfers and transactions made abroad, potentially removing the need for you to keep several different cards in your wallet

The MBNA credit card might also appeal to you don’t want the hassle of continually switching your balance from one card to another to avoid higher interest rates. After all, if you’ve moved your existing card debt to a 0% balance transfer credit card and haven’t cleared your debt before the 0% period ends, you’ll need to shift your debt to yet another card.

Opting for a card that offers a consistently low rate could therefore be a better choice.

What makes it special?

What sets the MBNA card apart from its rivals is its lack of fees.

This card is unique in charging no fees on balance transfers, money transfers and transactions made abroad, potentially removing the need for you to keep several different cards in your wallet.

You might for example, currently have one credit card with low fees for foreign usage, one for balance transfers and one for purchases, but the MBNA card ticks all these boxes.

You don’t have to pay an annual fee either, so the only charge you’re looking at is the representative rate of 7.4% APR (variable) on any outstanding balance.

Watch out for

You can’t transfer balances between MBNA accounts, so if you want to move a balance across from another MBNA card, you’ll have to look elsewhere.

You will also only qualify for the representative 7.4% APR (variable) if you’ve got a good credit score – you could be offered a higher rate if you don’t.

Also be aware that if you make a cash withdrawal on the MBNA card, interest will be charged from the day you take the money out, whether you’re in the UK or abroad – although this interest is charged at a much lower rate than many other cards charge.

You must be aged over 18 and have been a UK resident for three years or more to be eligible to apply for the MBNA card.

What else is worth a look

There are plenty of low rate credit cards to choose from, many of which don’t charge fees for balance transfers, so make sure you check out the competition before opting for the MBNA card.

For example, you’ll pay a lower representative rate of 6.4% APR (variable)**** on purchases and balance transfers with the Halifax Low Rate Credit Card, and there’s no balance transfer fee on transfers made in the first 90 days.

However, you’ll have to pay a 3% fee on transfers made after the first 90 days. Plus, the Halifax card has a 2.95% foreign transaction fee, so the MBNA card is a better option if you’re planning on spending overseas.

Other low rate cards include Lloyds Bank’s Platinum Low Rate Card, which also has a representative rate of 6.4% APR (variable)**** on balance transfers and purchases. Again this card has a foreign transaction fee of 2.95% when you use it abroad.

*Representative Example: If you spend £1,200 at a purchase interest rate of 7.4% p.a. (variable) your representative rate will be 7.4% APR (variable).

** Representative Example: If you spend £1,200 at a purchase interest rate of 18.95% p.a. (variable) your representative rate will be 18.9% APR (variable).

***Representative Example: If you spend £1,200 at a purchase interest rate of 18.9% p.a. (variable) your representative rate will be 18.9% APR (variable).

**** Representative Example: If you spend £1,200 at a purchase interest rate of 6.45% p.a. (variable) your representative rate will be 6.4% APR (variable).
All credit cards are subject to status and terms and conditions. Over 18s, UK residents only. Terms and conditions apply. See MoneySuperMarket.com for further information.

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Please note: any rates or deals mentioned in this article were available at the time of writing. Click on a highlighted product and apply direct.

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