Crazy MBNA offer

A question about : Crazy MBNA offer

I got some of those credit card cheques that I usually hate, but the offer is mad. 0.00% APR until June 07 - thats nearly 10 months!

You can get up to 95% of your balance, there is a 3% charge (max Ј75).

What do you think I'm going to do with it

Best answers:

• Probably they are trying to entice you in, so you can become one of their 'friends'. People they ring daily, several times often, asking for money.
  Seriously, if this suits you great, if there is any chance you will end up with MBNA as a creditor, then DON'T do it!
• OK,
  he knows by putting the money in a cash isa or whatever, he can get x% (lets say 6).
  So he can calculate now what that would be - indeed actually set it up to do it.
  Mean time, assuming he has some savings or similar, he can buy Ј400 of shares in whatever he wants.
  Now assuming the worst happens, at the end of the day he will have lost nothing, because the Ј400 he "lost" will be replaced in the account by the Ј400 in the ISA.
  If it makes more, he can "pay back" the 400 into his savings, and any extra is a bonus.
  At least thats what I assume is the plan!
• I'd like an offer like that. I'd stick the money in my mortgage account at 5.5%, effevtively tax free. Over Ј700 (exc repayments) for free.
  However, if it looks too good to be true, - check the small print.
  GG
• Don't forget the share dealing costs. £10 to buy and £10 to sell (which is cheap) is 5% of £400 so the shares would have to increase in price by that much just to break even.
• Good luck TTMCM.
  Warning to novice investors:
  TTMCM can either afford to repay MBNA from elsewhere if the value of the shares goes down or is prepared to go into debt on his credit card.
  Don't borrow money to buy shares if you can't afford to repay it if you make a loss
• I thought I'd update this so that you could have a laugh if I crash & burn!
  I've initiated part 1 of my master plan:
  Payment protection cancelled (after next statement);
  Monthly DD reset to minimum instead of paying all of the balance.
  I have decided though not to increase the limit to Ј20K. It's high enough already & I can take up to 95% - Ј15K should be more than enough.
  Part 2 is to buy the shares, but I wont be able to do that 'til the payment protection is removed from my account at the end of the month. I'll keep you all updated.
  Bbwaahhahahahahaahaaaaaaaaaa! (evil laugh)
• remember your minimum payment each month on the card will be GBP450.
• Assuming, of course you can afford the repayments, buy Premium Bonds. But please if you do any such thing watch MBNA like a hawk and make no slip ups or you'll pay dear.
• Well, I am certainly the type who likes a punt now and then, even risky ones... this is a lot more risky than I would ever consider (£10 on a 3 legged donkey is about my limit lol).
  As you have set the wheels in motion all that's left to say is good luck, I really do hope it pans out for you. And if it doesn't at least you will have a great how I got into debt story... it will be up there with the car mats! But, do try to be a bit careful, don't get carried away. I want to see an 'I told you so story' from you in july.