Free Money!

[COD]

Well, not really free However, MBNA has a new credit card that deposits the 1% annual rebate directly into your IRA account. You can get more back by using their partners blah blah blah. The web site is at http://www.nesteggz.com/

I don't see any "catch." There is no annual fee, and the interest rates if you run a balance are not out of line.

BTW, I've been lurking here for a while - just finally registered. Reading about how much fun some of you are having in ER is great motivation for me. I'm only 36- but the kids should be out of the house when we are in our early 50's, so I'm targeting ER around then.

 

[COD]

Yeah, but AMX won't deposit it directly into an IRA. Granted, you can do it yourself, but 99% of the population won't. There is a benefit to automating it and keeping it out of sight / out of mind.

 

[wabmester]

I don't personally use them, but Fidelity offers a couple of cards, including one that can put 1.5% in an IRA and one that can put 2% in a 529 plan.

 

[sgeeeee]

. . . I prefer NOT to do business with MBNA (unless I can really stick it to them).  

That was my first thought when I read the post. I had a very unpleasant experience with an MBNA VISA card. It took over a year for my wife and I to get one of their errors corrected. We wrote dozens of letters and made even more phone calls during that year trying to get the error corrected. I think I spent 3 weeks of that year on the telephone on hold. Usually, the calls or letters left us only more frustrated. But several times someone would listen, appologize and promise to correct the problem. Of couse the next statement would only add charges to the total of the previous charges that were all based on an incorrect billing. By the end of the year, MBNA was sending me a bill for over $300 based on an incorrect charge that started at less than 2 dollars. Had I known what I was in for, I would have been better off just paying the $2 charge from the beginnning. During that time, I found that many others had similar experiences with them.

That was about 4 to 5 years ago, but I'm not ready to give them another chance yet.

 

[John Galt]

I must come to MBNA's defense. I deal with many many
banks and credit card companies. I would rank MBNA
right at the top. I have borrowed large sums and I have
invested large sums with them. They had my entire IRA
for a long time. I have had many dealings over a long period of time. Can't recall even one problem.

John Galt

 

[ganda]

There are many many 1% cashback credit cards.   

There are some cards that give 5% back. I have a SoCal AAA card that gives me 5% back on gas, and an AT&T card that's giving 5% back on everything at the moment (going to hit the yearly cap soon need to get a new one). If you have a bunch of rebate cards and you buy your Certificates of Deposit on them you can make out like a bandit.

 

[sgeeeee]

I must come to MBNA's defense.  I deal with many many
banks and credit card companies.  I would rank MBNA
right at the top.  I have borrowed large sums and I have
invested large sums with them.  They had my entire IRA
for a long time.  I have had many dealings over a long period of time.  Can't recall even one problem.

I'm glad you have had good luck, John. But when I was having the nightmare several years ago, I looked into credit card company service records. At that time MBNA was one of the worst three companies in the country in terms of per capita customer complaints, consumer actions, etc. Chevy Chase bank was also very poorly rated and I don't recall the other really poorly ranked company.

 

[cute fuzzy bunny]

My old analogy for these sorts of things is "I ran across the highway with a bag over my head and nothing bad happened". You might get away with that for some time, but eventually...

Customer service is reflected on one hand by how well a business handles our day to day transactions. Most do pretty well on this

Its harsher metric is how they handle exceptions and problems. If you never have one, then you never experience the generally darker half.

I had similar experiences to SG with American Express and Sears; small discrepancies that were never resolved...several people acknowledging mistakes and profferring to resolve them, followed by their disappearance from the planet, followed by assurances that what I had experienced could NEVER have happened.

I do like that "never could have happened" thing though, because it gives me the chance to ask my famous "So...are you calling me an idiot or a liar?" question.

My worst experience by far was with Dish Network, where I ran afoul of about everything that could go wrong and their handling of every issue was virtually non-existant. After talking to their VP of customer service, who was easily the biggest dickhead I've ever encountered, I think I can understand why.

 

[sgeeeee]

Here's a little bit of information about MBNA credit cards. Apparently, in 1998 they had managed to get their JD Powers & Associates rating above average. But there are some other articles here that are worrisome.

Summary of JD Powers credit card rating:
http://www.cardweb.com/cardtrak/news/1998/august/12a.html

MBNA - Interest Rate Hikes
http://www.consumeraffairs.com/credit_cards/mbna_rate_hikes.html

MBNA - Sales Practices
http://www.consumeraffairs.com/credit_cards/mbna_sales.html

 

[John Galt]

I wish to comment on the "crossed the road with a bag over your head" post.

It is true that one of the very best tests is how well a
company (any company) deals with problems and
anomolies. But, in my case at least, MBNA has never
caused any. Not once. Not ever. I am a very fussy
guy and have not dealt with many big companies in any field
that have not disappointed, at least a little. However,
I do have insurance with GMAC and AARP. Both are also100% to date, and yes, we have had claims.

John Galt

 

[trumpeting_angel]

I hate to admit it, but I have a credit card with MBNA. It swallowed up the first credit card I ever had, and it's good for one's credit to have had these things a LONG time, so I keep it. I do get them to lower a fee now and again by threatening to leave. "We see you've been with us since 1973. Perhaps if we waive the [exhorbitant] cash advance fee and change your account to have a $50 maximum. . . " I stayed.

But they're the only credit card (THAT I KNOW OF) that has this wonderful feature for buying online: "Shop Safe." It gives me a new, unique credit card number (billed to my regular account) to pay for an online purchase. I specify the limit (to the amount of purchase) and the expiration date (default is 2 months). Presto, no identity theft, at least not with that transaction. I really like this feature. I even have a little Shop Safe program on my computer that pops up when I'm asked to fill in credit card information.

Extremely handy. Otherwise, I think they're vultures. And they'd have happily charged me some outrageous fee for that cash advance if I hadn't complained. My sister had a mortgage with Citibank; I was late paying it once and they charged $75.00!!!!!!!!! All vultures, the lot of them.

Anne

 

[John Galt]

Hello Anne. Boy, some interesting posts. Glad you are here.

Re. MBNA and "they are all vultures", I kind of agree,
although being a fanatical supporter of wide open free
enterprise, I support vulturism. See, the deal is that in
any dispute I automatically believe I will prevail and I
am very confrontational. When younger I relished a good fight (not so much any more) and would win most
of them, especially if money was invvolved. Enjoyed
matching wits, etc. Anyway, you won't find many people
on the planet that have beat me out of a dollar, although some have inflicted emotional wounds.
My spouse is quite the opposite (non-confrontational).
Jury is still out on if that is why we ended up together.
I must have a hundred stories about financial combat.
Too much for here. Too bad, or maybe not

John Galt

 

[John Galt]

GDER my friend, you sound mad as hell. BTW, I have
had good luck with Providian also. I think part of my good results is that if I am getting what I see as unfair
treatment, I will push until I exhaust all of my options.
Remember, no one can beat you if you don't quit
fighting.

John Galt

 

[trumpeting_angel]

Calling John Galt

Will you fly up to Connecticut (or perhaps your talents can be cheaply borrowed on the telephone) when I become a landlord and the tenants don't pay the rent?

It's the only thing (I think) I fear about my new interest in real estate investment. I am a well-known softie (left-leaning liberal kook, even), and I know I'll be vulnerable to a "haven't got enough money to feed the kids" story, even if it's malarky.

I have a strict plan with myself to hire a hard-hitting property manager the first time I back down on rent or other lease-breaking activity.

Anne

 

[John Galt]

Hello Anne! Alas, I no longer fly. Suggest you find a
large hairy biker, the more tattoos the better......

John Galt

 

[trumpeting_angel]

rent collectors

Is that what TH looks like?

He has already assured me that, if I buy in his neck of the woods, that he and jarhead will become my rent collectors.

Of course, his neck of the woods is 3,000 miles from mine, and he hasn't volunteered to coordinate construction on the fixer-upper I might purchase there!

I have a mean and dangerous local who would be good at collecting the rent, but only if I didn't care what sort of carnage ensued. He has to be kept on his leash. Not a hairy fellow, nor tattooed, just a helluva fighter.

Anne

 

[cute fuzzy bunny]

Nah, imagine Chad The Marketing Guy. Thats what I look like...well, maybe more like Chad at the end of a 3 year vacation.

No tattoos. Thought about one once when I was 18, but I couldnt think of anything I'd like to have on me for the rest of my life.

Besides, I always remember an observation my dads dad once had regarding the tattoo and piercing craze: I'd be careful around people who poke metal things in themselves...they're probably not going to have much of a problem poking metal things into YOU!

 

[John Galt]

So, what do you say when you bump into "Chad"?
How's it hanging?

John Galt

 

[cute fuzzy bunny]

That drop was so easy, everyone who uses it should have to send me five bucks.

No, I dont have any dimples.

 

[John Galt]

So, is that what you'd call a "punch line"? (rim shot!)

John Galt