MBNA True Line Mastercard review

What the True Line is designed to do

The True Line skips rewards entirely and focuses on interest. Purchases are charged 12.99%, and balance transfers get 0% promotional interest for 12 months. With no annual fee, the card costs nothing to hold, which matters when the whole point is to save money.

For a sense of the savings, carrying a $2,000 balance for a year at 12.99% costs about $260 in interest, compared with about $420 at 20.99%, the purchase rate on cards such as the RBC ION Visa. That simple estimate ignores compounding, but it shows the size of the gap: about $160 a year on a modest balance.

The balance transfer offer

The main draw is 0% promotional interest on balance transfers for 12 months. Move a $4,000 balance and you could clear it within the promotion by paying about $334 a month.

A balance transfer fee applies, so add it to your calculations, and plan to finish paying before the 12 months are up. After the promotion ends, any remaining balance is charged a regular rate, so check what that rate will be before you transfer.

The promotion works best as part of a plan. List what you owe on each card, transfer the highest-rate balance, and set an automatic payment large enough to clear it in time.

Fees, interest and the fine print

There’s no annual fee. The purchase rate is 12.99%, but cash advances are charged 24.99%, almost twice as much, so use another option if you need cash. Because there’s no annual fee, you can also keep the card open after the balance is paid off without any carrying cost.

Foreign currency purchases carry a 2.5% fee, about $25 per $1,000 spent abroad. And while the rate is low, it isn’t zero: the fastest way to save is still to pay more than the minimum each month and stop adding new purchases to a balance you’re paying down.

Coverage and protection

The True Line doesn’t come with an insurance package. Its listed protection is Mastercard’s zero-liability policy, which protects you from unauthorized charges on your account. If you want purchase or travel insurance, you’ll need to look to another card.

• Mastercard zero-liability protection

Who it suits, and who should look elsewhere

The True Line suits people carrying a balance on a higher-rate card who want a no-fee way to pay it off, and people who sometimes carry a balance on new purchases and want to pay less interest when they do.

If you pay in full every month, you’ll get nothing from this card, and a no-fee rewards card would at least earn something on the same spending. It’s also a poor choice for anyone who regularly takes cash advances.

How it compares

The CIBC Select Visa Card charges 13.99% on purchases, cash advances and balance transfers, with 0% on transfers for 10 months and a 1% fee. It has a $29 annual fee, rebated in the first year, but a much lower cash advance rate than the True Line.

The BMO Preferred Rate Mastercard also costs $29 a year with a first-year waiver, charges 13.99% on purchases and 15.99% on cash advances, and offers 0.99% on balance transfers for 9 months. The True Line has the longest promotion of the three and no annual fee at all.

Before you apply

The recommended credit score is 660 or higher, and MBNA makes the final decision based on your full credit profile. Promotional terms and transfer fees can change, so confirm the current offer on MBNA’s website before applying.