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When it comes to low interest rate credit cards, one of the best options is MBNA. MBNA Mastercards have 2 credit cards that provide permanent, low interest rates, and some reward cards that have great balance transfer offers.
And now, a new feature has just come to most MBNA Mastercards that can help you save on potential credit card interest.
Introducing MBNA Payment Plans
MBNA has introduced installment plans on purchases that are more than $100.
How do they work? First, sign into your MBNA account and select the purchase you want to apply a payment plan to.
Then choose a payment plan term of either 6, 12, or 18 months.
You’ll have to pay a fee for this, of course, which is a percentage of the total purchase price, and which varies based on the term selected.
Here’s the percentage for each term:
- 6 months – 4%
- 12 months – 6%
- 18 months – 8%
You’ll be given the full terms and be able to apply your payment plan. There’s no annual interest rate applied to payment plans, only the plan fee applies.
If you won’t be able to pay your bill in full, these payment plans can be a great way to help save on the typical 20% credit card purchase interest rate.
An example of how it works
Let’s say you want to apply a payment plan to a purchase of $200.
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|
You’re obviously 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, and more examples here.
Which MBNA Mastercards are eligible for Payment Plans?
So which MBNA Mastercards are eligible? Any Mastercard with an interest rate of more than 12.99%.
That means all MBNA Mastercards are eligible except for the
If you have some large purchases you want to make, and need to be able to spread out the payments, this is actually a decent option to help you spread those payments out for a relatively minimal fee.
It goes without saying that you’d be better off paying for the purchase in full to begin with, but this is a good fallback should you need some breathing room.
What are your thoughts on these new payment plans?
Let us know in the comments below.