1. What is MBNA Minimum Payment?

The MBNA minimum payment is the lowest amount you must pay each month to keep your credit card account in good standing. It's calculated as the greater of 2.25% of your balance or £5 (for GBP cards) or CAD $10 (for CAD cards).

2. How Does the Calculator Work?

The calculator uses the MBNA minimum payment formula:

Where:

• \( MP \) — Minimum payment
• \( P \) — Principal balance
• 2.25% — Percentage of balance
• £5 or CAD $10 — Fixed minimum amount

Explanation: The calculation ensures you pay at least the fixed minimum amount or 2.25% of your balance, whichever is higher.

3. Importance of Minimum Payment Calculation

Details: Understanding your minimum payment helps with budgeting and avoiding late fees. However, paying only the minimum will result in paying more interest over time.

4. Using the Calculator

Tips: Enter your current balance in GBP or CAD and select your currency. The calculator will determine your minimum payment obligation.

5. Frequently Asked Questions (FAQ)

Q1: Why does MBNA have a minimum payment?
A: Minimum payments ensure customers make regular payments toward their debt while maintaining account flexibility.

Q2: What happens if I pay only the minimum?
A: You'll avoid late fees but will pay more interest over time as it takes longer to pay off your balance.

Q3: Can the minimum payment change?
A: Yes, it changes with your balance. If your balance decreases, your minimum payment may decrease (but not below the fixed minimum).

Q4: Are there fees included in the minimum payment?
A: Any fees (like late fees) from your previous statement are typically added to your balance and included in the minimum payment calculation.

Q5: Is it better to pay more than the minimum?
A: Yes, paying more than the minimum reduces interest charges and helps pay off your balance faster.