MBNA Payment Plans are a type of buy now, pay later payment plan that lets you break large purchases into predictable monthly payments. Instead of paying over 20% in credit card interest, you'll pay a low, fixed fee through an installment payment plan, helping you pay less in the long run and stay in control of your budget.
In this guide, we'll walk you through how MBNA Payment Plans work, how to use them, and which MBNA credit cards are eligible.
Key Takeaways
- To use an MBNA Payment Plan, charge $100 or more to a qualifying card and set up a Payment Plan for a small fixed fee.
- With the Payment Plan, you’ll pay smaller, equal payments that are spread out over 6, 12, or 18 months.
- The highest plan fee is 8% of your purchase – considerably lower than the 20%+ interest charged by most credit cards.
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What are MBNA Payment Plans?
MBNA Payment Plans allow MBNA credit cardholders to transform purchases over $100 into installments to pay over time. Available payment terms are 6, 12, or 18 months. While you won't pay monthly interest on the charge, you will incur a payment plan fee, which is a percentage of the purchase price rolled into the monthly payments.
How do MBNA Payment Plans work?
To set up a Payment Plan for a large purchase you made, sign in to your MBNA account and select the transaction. Then, pick a payment plan term of either 6, 12, or 18 months. Be aware that the Payment Plan fee is higher for the longer-term options.
Once you've selected the term, the system will calculate the total amount you'll pay, including the fee, and the monthly payment amount. Confirm your choice, and the Payment Plan will be set up for you.
Here's the percentage fee for each term:
- 6 months – 4%
- 12 months – 6%
- 18 months – 8%
Remember, you won't get charged regular interest on the purchase; you'll just pay the percentage plan fee.
Not sure if it's worth it? Consider the fact that most credit cards charge an average of 20% interest, so if you know you'll carry a balance, even the 8% plan fee is a deal.
To give you an idea of how the MBNA payment plan works, imagine you want to use it for a $200 purchase.
Here's the breakdown of what your monthly payment would be and the total amount you would have paid for the item, including the fee.
| Term | Plan fee | Total paid | Monthly payment |
|---|---|---|---|
| 6 months | 4% | $208 | $34.67 |
| 12 months | 6% | $212 | $17.67 |
| 18 months | 8% | $216 | $12 |
You're paying a little more, but it's much better than paying the typical 20% interest rate on new purchases.
You can see the full details on how it works with more examples here.
Which credit cards are eligible for Payment Plans?
Any Mastercard with an interest rate above 12.99% is eligible for MBNA Payment Plans. That means all MBNA Mastercards are eligible except for the MBNA True Line® Mastercard® and MBNA True Line® Gold Mastercard®, which have standard interest rates below this threshold.
| Credit card | Current offer | Annual fee | Income requirements | Learn more |
|---|---|---|---|---|
| MBNA Rewards Platinum Plus® Mastercard® | 10,000 bonus points (terms) | $0 | None | Learn more |
| MBNA Rewards World Elite® Mastercard® |  $40 GeniusCash + 30,000 bonus points (terms) | $120 | $80,000 personal or $150,000 household | Learn more |
| MBNA Smart Cash Platinum Plus® Mastercard® | 5% cash back on gas and groceries for the first 6 months, up to $500 spent per month (terms) | $0 | None | Learn more |
| MBNA Smart Cash® World Mastercard® | 5% cash back on gas and groceries for the first 6 months, up to $500 spent per month (terms) | $39 | $50,000 personal or $80,000 household | Learn more |
| Amazon.ca Rewards Mastercard | None | $0 | None | Learn more |
MBNA Rewards Platinum Plus Mastercard
The MBNA Rewards Platinum Plus Mastercard is our favourite no-fee MBNA credit card, and it just so happens to qualify for MBNA Payment Plans. Normally, you'd pay 21.99% on purchases, which is about average in Canada.
However, you can break up your purchases into installments while earning steady rewards on restaurants, groceries, and select recurring bills. All other purchases give you 1 point per $1 spent.
Pros:
- 10% bonus points every year on your birthday
- Free to add a supplemental cardholder
- Gives mobile device coverage
Cons:
- Annual cap on bonus categories
- Limited insurance included
MBNA Rewards World Elite Mastercard
×7 Award winner 
GC: $40
7x Award winner The MBNA Rewards World Elite Mastercard is the best MBNA credit card around. Although its purchase rate is average and it does charge an annual fee, you'll quickly rack up rewards points for groceries, dining, and recurring bills at a rate of 5 points per $1 spent.
You won't get a ton of other perks, but the impressive insurance package and annual birthday bonus add substantial value and more than offset the card's annual fee.
Pros:
- 10% bonus points every year on your birthday
- Generous welcome bonus
- Includes 12 types of insurance
Cons:
- High income requirements of $80,000 personal or $150,000 household
MBNA Smart Cash Platinum Plus Mastercard
We wanted to list another no-fee card that's eligible for payment plans. The MBNA Smart Cash Platinum Plus Mastercard gives 2% cash back for gas and groceries, but your rewards are capped at just $500 in spending per month. Once you go over that, you'll only earn 0.5% back, which is also the reward rate for all other purchases.
Once you've accumulated $50 of cash back rewards, you can request a statement credit, deposit them into an MBNA bank account, or donate the rewards to a participating charity.
Pros:
- Includes 7 types of insurance
- No annual fee
- No income requirements
Cons:
- Low spending caps
- Low reward rate for all other purchases
MBNA Smart Cash World Mastercard
At first glance, the MBNA Smart Cash World Mastercard might look just like the MBNA Smart Cash Platinum Plus Mastercard, but there are a few subtle differences. This card charges a low annual fee, but it gives 0.5% more in cash back for all other purchases, which bumps up the card's overall average earn rate.
Insurance coverage is also similar, but you'll get price protection thrown in. According to our insurance value estimates, this gives a $72 value to the MBNA Smart Cash World Mastercard.
Pros:
- 5% cash back on gas and groceries for the first 6 months
- Free to add a supplemental cardholder
- 3 options for redeeming cash back
Cons:
- High income requirements of $50,000 personal or $80,000 household
Amazon.ca Rewards Mastercard
If you primarily make your big purchases on Amazon, you'll want to check out the Amazon.ca Rewards Mastercard. The card is easier to qualify for than others on our list, and it gives 1.5 points per $1 spent at Amazon and Whole Foods. All other purchases earn 1 point per $1.
It's a fairly basic card with few bells and whistles, but Prime members should note that they'll earn up to 2.5% back on their purchases. This might not seem like much, but if you're making big purchases, rewards can add up fast! Don't forget that you can break these Amazon purchases into installment payments.
Pros:
- Prime members get up to 2.5% back on purchases.
- No annual fee
- No income requirements
Cons:
- Rewards can only be redeemed at Amazon.ca
- No insurance included
FAQ
How does the MBNA Payment Plan work?
It's easy. Just charge a purchase of at least $100 to a qualifying MBNA credit card. Then, decide if you'd like to break it into smaller equal payments spread over 6, 12, or 18 months. You'll pay a small fee to set up the installment plan, but it can work out to be cheaper than carrying a balance.
Is the MBNA Payment Plan the same as an MBNA installment plan?
Yes, you might hear the terms "MBNA payment plan" and "MBNA installment plan," but they both refer to the same thing: splitting up large charges to your MBNA card into smaller, equal payments over a 6-, 12-, or 18-month period.
Are payment plans on credit cards worth it?
If you know you'll be carrying a balance on a large purchase, it can make financial sense to pay the small installment fee rather than paying interest every month. That's because the fee is much smaller than paying around 20% interest.
Does a payment plan hurt your credit?
MBNA states that setting up a Payment Plan does not affect your credit score, but if you miss a payment, they will report these to the credit bureaus. This is when you could see your credit score take a hit.
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GC: 
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