(PRWEB) April 29, 2010
MBNA Ireland has introduced a new Platinum card with an advertised benefit of 10 months interest free borrowing on balance and money transfers. 3 years ago this wouldn’t have made the news but in today’s market, where lender interest rates average 18.6%, a 0% offer is a big deal according to http://www.thinkingmoney.org .
The Bank of America subsidiary MBNA Ireland say it’s Platinum card is the ‘smart choice for competitive interest rates’ and they’re not wrong with other card providers unable to come anywhere close to matching the offering. With the average interest rate so high, the Platinum credit card from MBNA Ireland could well be a popular choice for credit-hungry financial consumers.
Credit card interest rates have been gradually rising over the last three years despite the low base rates. The result is low cost borrowing for the banks but high cost credit for the public as lenders try to claw back money lost throughout the downturn. Many credit card providers have also been hit hard by the losses attributed to the trouble with payment protection insurance (PPI) leading to a recoup of revenue through card charges. The insurance product yielded billions of euros in profit before the bubble burst and commissions were reigned in.
Needless to say, the combination of reduced revenue streams and increased economic distress has led to borrowers getting a raw deal from lenders. It is this very situation that makes the MBNA Ireland 0% interest offer stand out in a marketplace where zero percent deals and cashback offers were once a staple diet.
But the offer shouldn’t come as a surprise, with 7 million customers across Europe, MBNA is well placed to make competitive strides into the credit card market. And their Platinum card is even more appealing when you consider the amount of bad debt that many other providers are dealing with.
That is often the problem raised by financial analysts; that the many good financial consumers end up paying for the financial mismanagement of the few. But while MBNA Ireland have their 0% card offer, there is at least hope for some credit-worthy borrowers that they can get the funds they need at a fair price.
The offer is sure to tempt cardholders with other lenders into considering switching to MBNA Ireland credit cards. This is especially likely when you consider that most lenders have increased interest rates on average by 6% over the last 12 months. However well MBNA’s offering does, it definitely stands head and shoulders above any other card at the moment and may well do for the foreseeable future.
For more information visit http://www.mbna.ie