MBNA 0% Cash Advance

[funkylad20]

I have just had a call from MBNA with regards to my A&L Credit Card. They are offering 0% on BT and Cash Advances for 9 months.

I have no balance to transfer, but I could do with a Cash Advance of �5,000 as I am about to buy a car. I have looked at loans in the last week (A&L offer approx 8% APR) and was going to get a loan for �5,000 over a 2 year re-payment period (approx �500 to pay back in total interest).

Is it sensible? It seems logical for me to consider this as
I can have 0% on a lump sum, pay most of this back over the forthcoming months and in 9 months I can get a small loan for a smaller period of time which in the end will cost me a lot less.

Is it a con though? I expect a 'fee' for them to arrange it. But has anyone else experienced this? The deal conveniently ends 'tonight at 9pm' and on asking why I have been called, I have been 'randomly selected as an MBNA customer'. Obviously sales talk, so I am sceptical about it. Also, am I able to call them back as very dubious about giving details over the telephone in case all of my money disappears down a well in Nigeria...

[Ethel]

3% fee = �150 on �5000. It is quite hard to get a small loan, unless you have an overdraft.

The 3% fee over 9 months is equivalent to around 4% APR (but it is very complicated) and you pay the fee upfront.

If you don't pay it back in time, you are hammered for the normal interest (around 15-18%) for the entire advance.

Don't be pushed in to making a decision. That is all sales patter.