How To Use MBNA Payment Plans

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 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.

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 that is a percentage of the purchase price.

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 largest 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.

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?

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	$150 GC Boost + 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		$0	none	Learn more

Any Mastercard with an interest rate of more than 12.99% is eligible for payment plans. That means all MBNA Mastercards are eligible except for the MBNA True Line^® Mastercard^® & MBNA True Line^® Gold Mastercard^®, which have standard interest rates below this threshold.

FAQ

Do payment plans affect your credit?

According to MBNA, using a payment plan does not affect your credit score, probably because MBNA does not report your payments to credit monitoring bureaus.

Are payment plans on credit cards worth it?

They can be if you know you will not be able to pay off a large purchase before it accrues interest. You’ll save on interest even after paying the plan fee as long as you make the required payments.

Is there a downside to payment plans?

It’s easy to forget that you’ve signed up for payment plans, so that you might overextend yourself financially. Plus, if you miss a payment, the unpaid portion of your bill will be charged the regular interest rate for purchase (which is usually around 20%).