MBNA True Line Mastercard Review
A closer look at one of the best balance transfer offers and low-fee credit cards in Canada.
A closer look at one of the best balance transfer offers and low-fee credit cards in Canada.
Nobody wants to carry a credit card balance but large purchases, emergencies or unforeseen expenses can throw an ugly blotch onto even the most organized Canadian’s financial picture. At these times it’s crucial to act fast and have a plan to pay down your debt before it grows out of control. Moving your debt to a low interest card is the first line of defence (ideally with an even-lower-rate balance transfer welcome offer—although, unfortunately, this card does not currently have one). With its low 12.99% rate on balance transfers and new purchases, could the MBNA True Line Mastercard be the right card for you? We dig in to the details.
This offer is not available for residents of Quebec.
Most credit cards charge a regular interest rate of around 19.99%, while the MBNA True Line Mastercard charges 12.99%, translating to everyday savings to the tune of 7.00% on unpaid balances. This means that new purchases accumulate interest at a lower rate and, perhaps even more importantly, balance transfers that are not fully paid off in the allotted 12 months at 0% revert to a lower regular rate as well.
Most low interest cards carry a fee, so you’re paying for the privilege of a lower rate. Not so with the MBNA True Line Mastercard. With no annual fee, you can keep more money in your pocket (or use it to lower your debt). You can even carry this card as a no-cost back-up in case you need a low interest option.
The strength of the MBNA True Line Mastercard is in its ability to save you money, which it does with a low interest rate, no annual fee and a promotional balance transfer period at 0% interest. So don’t expect many frills with this card. Aside from the very standard purchase protection, there are no perks.
The standard purchase interest rate is among the lowest at 12.99%, and very attractive for everyday purchases.
Be aware of is that while the standard purchase interest rate is 12.99%, cash advances accumulate interest at a whopping 24.99%. Do yourself a favour and avoid the cash advance service on this card altogether.
The other thing to note is that if you have accumulated debt, you’ll immediately pay 12.99% on it. While that’s better than the typical 19.99% most other cards charge, it’s not quite as beneficial as the super-low-rate promotional periods that a few competitors offer to new customers.
If you’re after a no-fee, low interest credit card for everyday purchases, and a super-low balance transfer welcome offer isn’t critical, the MBNA True Line Mastercard has a lot on offer.
Among the many other low interest credit cards available to Canadians, the MBNA True Line shines for two reasons: it’s a no-fee card, and it offers a low interest rate of 12.99% on balance transfers and new purchases. Still, it’s worth considering some of the True Line’s competition before deciding which is right for you:
Another option in the MBNA True Line collection, this Gold Mastercard offers a remarkably low 8.99% on purchases and balance transfers. While the Gold drops the interest rate an additional 4% from the MBNA True Line Mastercard, it does carry an annual fee of $39.
Like MBNA’s True Line, the American Express Essential Card has a $0 annual fee and low 12.99% purchase interest rate. On the other hand, the AMEX doesn’t charge a balance transfer fee, while MBNA charges a flat 3% fee on the balances you bring over from higher interest cards. It’s also important to consider that AMEX balance transfers are capped at $7,500, or 50% of your credit limit, so you may find you don’t have enough room to bring over your higher interest rate card balances, depending on your debt load and the credit limit you’re offered. The American Express Essential Card does outshine the MBNA True Line with its lower cash advance rate (12.00% versus MBNA’s 24.99%), better perks and insurance, but these are offset by the fact that American Express isn’t as widely accepted as Mastercard.
The RBC RateAdvantage card has no annual fee and a very competitive interest rate but, unlike the MBNA True Line, this card’s rate is variable. With the RateAdvantage card, you’re charged the prime interest rate plus 4.99% to 8.99%, depending on your credit rating at the time of application; the better your score, the lower your rate. While today’s prime interest rate is currently low, as rates rise, so could the rate you’re charged on unpaid balances. With the MBNA True Line, on the other hand, you get a fixed 12.99% interest rate regardless of your credit score, as long as you’re approved. As well, there’s no welcome promotion with the RBC RateAdvantage card, but it does offer some perks, including savings of $0.03/litre at Petro-Canada (along with the ability to earn Petro-Points), and discounts on purchases from partners such as Indigo.ca, Roots and The Source with RBC Offers.
The Scotiabank Value Visa offers the same 12.99% interest rate as the MBNA True Line but carries an annual fee of $29. The welcome offer of 0.00% interest on cash advances for 6 months isn’t as tempting as MBNA’s, either, but the Scotiabank Value Visa potentially makes this up by not charging a transfer fee so you could come out ahead depending on the size of your balance. For those wanting to stick with one of Canada’s big banks, the Scotiabank Value Visa is attractive as it offers one of the most impressive balance transfer promotions from the “Big Five”.
Additional perks: Up to 25% off at participating AVIS Rent A Car and Budget Rent A Car locations
MORE ON CREDIT CARDS:
Affiliate (monetized) links can sometimes result in a payment to MoneySense (owned by Ratehub Inc.), which helps our website stay free to our users. If a link has an asterisk (*) or is labelled as “Featured,” it is an affiliate link. If a link is labelled as “Sponsored,” it is a paid placement, which may or may not have an affiliate link. Our editorial content will never be influenced by these links. We are committed to looking at all available products in the market. Where a product ranks in our article, and whether or not it’s included in the first place, is never driven by compensation. For more details, read our MoneySense Monetization policy.
Share this article Share on Facebook Share on Twitter Share on Linkedin Share on Reddit Share on Email
Would be a good card if we could use Tap or Pin feature !!!!
I got an MBNA card. And three weeks after ingot the card the interest rate changed. Which is allowed according to their all print. I would stay away. 12.99 will be 14.99 within a month.
Stay away from MBNA. This is the worst Credit card issuer. Customer service rudest, unkind anywhere on the planet. Approved for 5K limit Jan 10, used the card to purchase groceries and gas for about $1100. There were multiple duplicate charges which MBA told me to dispute with retailer instead of launching an investigation from their end. Even capital one take ownership of customer disputes on their own. Feb 1st noticed on my app my limit reduced to $1000 which below my balance. I was told Automatic system approval did not take consideration there was a no activity gap in my Transunion credit report therefore risk assessment reduced my limit. Sure, I was living in U.S for few years and no activity on my file but that was over three years ago. My Transunion file over 39 years old. trades still reporting as old as 21 yrs. For the past three years I have CIBC infinite Visa $19k limit, Scotia Busline Visa $45K limit, Amex Cobalt $21K limit. All accounts paid in full, no balance utilization below 5% any day. Score 769. Less than 6 inqs last 5 years. only 1inq within last 9 months. I canceled the card immediately.