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 typically calculated as 2.25% of your balance or £5, whichever is greater.

2. How Does the Calculator Work?

The calculator uses the MBNA minimum payment formula:

Where:

• \( MP \) — Minimum payment (GBP)
• \( P \) — Principal balance (GBP)
• 2.25% — Percentage of balance
• £5 — Minimum fixed amount

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

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 for the month.

5. Frequently Asked Questions (FAQ)

Q1: Is the minimum payment the same for all MBNA cards?
A: Most MBNA cards use this formula, but always check your card terms as some products may differ.

Q2: What if my balance is less than £5?
A: You would pay the full balance as the minimum payment would be £5, which is more than your balance.

Q3: Does making only minimum payments affect my credit score?
A: While it won't directly hurt your score, consistently high balances relative to your limit can lower your score.

Q4: How long would it take to pay off my balance making only minimum payments?
A: Much longer than you might expect due to interest charges. Use a repayment calculator for specific estimates.

Q5: Can I pay more than the minimum?
A: Yes, and it's recommended to pay more than the minimum to reduce interest charges and pay off debt faster.