MBNA

MBNA, currently part of Bank of America, is the largest credit card lender in Europe. MBNA is known for its bold and dynamic credit card products and it leads the market in affinity branded credit cards.

MBNA credit cards are regularly found at the top of our comparison tables as their offerings are always competitive, and their supporting information and terms clear and unambiguous.

MBNA credit cards already benefit from positive payment order.

Compare MBNA Credit Cards

Card Introductory Offer Balance Transfer Fee Representative APR (Variable)
AA Balance Transfer Credit Card 0% on balance transfers or £ transfers for 16 months, on purchases for 3 months 2.9% 17.9%
APR
Key points View card rates
plus 1 AA reward point per £1 spent (X2 on motoring spend)
plus Money transfers accepted
plus Free fraud protection
plus Online card management
minus High cash advance fees
Key Selling Point
One AA Reward Point for every £1 you spend plus double points on motoring spend. This card will also allow you money transfers to your bank account. 2.9 % balance transfer fee only applies to balance transfers in 1st 60 days
Balance Transfer Limit £
Subject to status
ATM £ Cash Charge
5% min. £5
Surcharge on Overseas Transactions
2.99%
ATM £ Cash Charge Abroad
5% min. £5
Minimum Repayment Amount
£25
Minimum Repayment Percentage
1%
Maximum Credit Limit
Subject to status
Recommended Minimum Age
23
Recommended Minimum Income
£20,000
Annual interest rate on purchases
17.9%
Annual rate on balance transfers
19.9%
Annual interest rate on cash advances
27.9%
Credit rating needed
Good
Representative example: 17.9% p.a. (variable) on card purchases. Equivalent to 17.9% APR representative (variable) based on credit limit of £1,200
AA Rewards Credit Card 0% balance transfers for 12 months & purchases for 10 months 3.00% 16.9% APR
Key points View card rates
plus Good dual offer 12/10
plus £ transfers as well as balance transfers
plus Cashback on fuel spend
plus AA Rewards points
minus No balance transfers from MBNA cards
minus High cash advance fee
Key Selling Point
Great dual deal 0% for 12 months on balance transfers, and for 10 months on purchases. Cashback on fuel purchases credited to your AA card account.
Balance Transfer Limit £
Subject to Status
Cash Advances
Yes
ATM £ Cash Charge
5% min. £5
Surcharge on Overseas Transactions
2.99%
ATM £ Cash Charge Abroad
5% min. £5
Minimum Repayment Amount
£25
Minimum Repayment Percentage
1%
Maximum Credit Limit
Subject to Status
Recommended Minimum Age
23
Recommended Minimum Income
£20,000
Annual interest rate on purchases
16.9% p.a.
Annual rate on balance transfers
18.9% p.a.
Annual interest rate on cash advances
27.9%
Credit rating needed
Good
Representative example: 16.9% p.a. (variable) on card purchases. Equivalent to 16.9% APR representative (variable) based on credit limit of £1,200

MBNA Credit Card Guide

It was announced on the 15th August 2011, that MBNA’s US MasterCard based credit card business was being sold to Toronto-Dominion Bank (part of TD Canada Trust). Very little information has made the British press with regards the fate of the UK MBNA business, but there was speculation in the City in mid-August that Richard Branson’s Virgin Bank was in negotiations to buy the MBNA credit card book. Its a logical fit, with Branson known to be still looking at acquiring the old Northern Rock business, Virgin would then have a ready made credit card business as well.

A spokesperson for Virgin Bank said

“We are long-term partners with Bank of America [who own the MBNA credit card business]. Our [Virgin branded] credit cards are issued by MBNA. We know the people and the business.

“No doubt we will be involved in the process as it goes forward.”

Bank of America apparently want to concentrate on their US business and particularly want to expand their Investment Banking arm.

MBNA’s recent credit card portfolio includes some of our favourite cards, with a wide range of tantalising incentives, rewards and promotions. The pricing structure of their credit cards is competitive but as with all credit cards, consumers need to carefully assess how their individual spending patterns will fit around the stated charges and interest rates.

This is particularly important with MBNA credit cards. They do offer top benefits providing you’re rigorous about sticking within the Terms and Conditions. However, one slip or late payment and the penalties are draconian! Introductory preferential interest rates and benefits immediately cease, and a raft of extra charges will be levied.

You’ll also need to have a good credit history and credit score. Typically to stand a good chance of acceptance for an MBNA credit card you’ll need to:-

  • Be 23 years old or more
  • Be a UK resident and home owner
  • Be able to prove your address for the last 3 years
  • Be employed and have an income of over £20,000
  • Not have had any credit defaults, County Court Judgments or missed payments in the last 3 years

In May 2011 MBNA launched Contactless Payment (CP) on its UK issued cards using the EMV standard. This enables card holders to quickly and efficiently pay for small value items like fast food, hot drinks and travel tickets on the move. MBNA is the first card issuer to offer Contactless Payment on American Express branded credit cards. MBNA allows customers to pay for items valued at up to £15 by CP.

contactless payment logo

There have been some security fears raised by the press about Contactless Payment. MBNA have added extra layers of security to their Contactless Payment routine and to their credit cards. Customers have to enter their personal PIN on first CP use and routine occasional checks of customer’s PINs will be performed when using the Contactless Payment technology.

All newly issued MBNA credit cards will feature the CP technology.  Existing customers cards will be updated when existing plastic is replaced or renewed.

MBNA Corporate Information

When MBNA first arrived in Europe in 1993 they shook up the existing credit card sector, introducing innovative new features, marketing ideas and promotions to what at that stage was a rather dull credit card market. MBNA is now the largest independent credit card lender in Europe and indeed the world.

MBNA’s portfolio of credit cards are aimed at individuals with good credit ratings; in return you’ll see some of the most inventive and forward thinking credit card facilities and options in their products, and some of the lowest charges if the cards are used within their Terms and Conditions.

MBNA was founded in 1982 as Maryland Bank, N.A., a subsidiary of Maryland National Bank in the USA. The company name MBNA is derived from an abbreviation or acronym of Maryland Bank, National Association.

MBNA has been extremely shrewd in growing its business, and is the market leader in affinity credit cards. Affinity cards offer a share of the commission generated each time the credit card is used back to the organisation or brand named on the card in exchange for allowing a public association between it and the credit card issuer.

MBNA was one of the first credit card companies to realise the potential in these relationships, and when the company launched it started by approaching clubs and institutions with elite and high net worth members, offering revenue shares from a branded credit card in exchange for a formal association.

Some of these early associations were extremely successful as they targeted dentists, pilots and university alumni and this allowed MBNA straight into the lucrative luxury credit card market via the back door, even though it was a relatively new credit card company.

By 1999 it’s understood that MBNA had close to 400 endorsement and affiliate relationships and its credit card loan book had grown to $72.3 billion and its fiscal income from its credit card business topped $1 billion.

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