1. What is the MBNA Minimum Payment?

The MBNA minimum payment is the lowest amount you must pay each month on your credit card balance. It's calculated as the greater of 2.25% of your balance or £5, whichever is higher.

2. How Does the Calculator Work?

The calculator uses the MBNA minimum payment formula:

Where:

• \( MP \) — Minimum payment (GBP)
• \( P \) — Principal balance (GBP)

Explanation: This ensures you always pay at least £5 or 2.25% of your balance, whichever is greater.

3. Importance of Minimum Payment Calculation

Details: Understanding your minimum payment helps with budgeting and shows how long it would take to pay off your balance making only minimum payments.

4. Using the Calculator

Tips: Enter your current credit card balance in GBP. The calculator will show your required minimum payment.

5. Frequently Asked Questions (FAQ)

Q1: Why is there a £5 minimum?
A: This ensures the bank covers processing costs even on very small balances.

Q2: Does paying only the minimum affect my credit score?
A: While it won't directly hurt your score, high utilization (balance vs limit) can lower your score.

Q3: How long would it take to pay off my balance with minimum payments?
A: Much longer than you might expect due to interest accumulation - consider paying more than the minimum.

Q4: Does this include interest and fees?
A: No, this is just the principal balance calculation. Your actual payment may be higher if you have fees or interest charges.

Q5: Is this calculation specific to MBNA?
A: Yes, other credit card issuers may use different minimum payment formulas.