Managing Credit

Credit is a financial tool that offers convenience and flexibility. But, like any tool, it needs to be looked after and managed responsibly. Control your credit, don’t let it control you.

What this guide covers

How do I manage credit responsibly?
How do I borrow responsibly?
How do I know if my borrowing is getting out of hand?
Schedule of Fees and Charges
Other resources

How do I manage credit responsibly?

It sounds obvious but a good first step to managing credit responsibly is to manage your money responsibly. For instance:

Create a budget to manage how much you spend – and stick to it. You can visit the National Consumer Agency It's Your Money website for some useful tools to help with budgeting
Be realistic with your spending
Keep track of where you spend your money – keeping receipts will help you remember
Save up over time for larger purchases rather than buying them using credit
Keep credit card balances as low as possible – even better, pay them off each month

How do I borrow responsibly?

Borrowing responsibly means paying bills on time and not taking on more debt than you can realistically handle, so bear in mind the following:

Plan purchases to fit into your monthly budget and avoid making impulse buys. Bargains rarely seem like bargains when you add in monthly interest charges
It is often unwise to finance purchases longer than the lifespan of the products you’re buying. Financing a car over a longer period is understandable, but it is sensible for everyday purchases to be financed over as short a period as possible
Keep well below your credit limit. Not only will you save money on monthly interest charges, you’ll also be keeping credit for when you need it most

How do I know if my borrowing is getting out of hand?

Here are some warning signs. If any apply to you it may be time to rethink your financial situation or seek independent help with your debts:

You’re constantly paying bills late and only making the minimum payment each month
You’re surprised by how many purchases there are on your monthly statement
You’ve reached or exceeded the credit limit on one or more of your accounts
You need to work overtime or take on a second job just to meet your monthly payments
You’re struggling to make repayments or having to juggle finances to meet credit payments

Please note: The contents of these pages are not intended to be taken as financial advice or recommendation made by MBNA. You should seek independent financial advice if unsure about your financial needs.

Schedule of Fees and Charges

Late fee - €15.24 - each time your minimum payment has not reached your account in cleared funds by the date that payment is due. At least your minimum payment must be cleared onto your account before this date to remain in compliance with your MBNA Agreement. Accounts with payments received after the due date shown on your statement are subject to late fees.

Over limit fee - €12.70 - if you are over your credit limit at the end of any statement period which is the period starting on the day after your last statement date and ending on your next statement date. The statement period for your first statement starts on the date your account is opened.

Returned Payment fee - €19.05 - each time we return a cheque unpaid, and each time a direct debit, a cheque or other item for payment into your account is unpaid.

Cash Handling Fee - 1.5% minimum €2.50, no maximum - the charge that is applied to your account when you make a cash transaction. A cash transaction is any transaction through which you receive cash or cash substitute by using your card or card number. Examples would be when you withdraw cash from an ATM or bank, when you purchase foreign currency, or when you make gambling transactions.

Foreign Exchange Commission - 2.65% of the value of each foreign exchange transaction - If you make a transaction in a currency other than euro, the amount will be changed into euro using an exchange rate based on the reference exchange rate which is the exchange rate set by Mastercard or Visa, each of which are available from the websites, www.visaeurope.com/en/cardholders/exchange_rates.aspx or www.mastercard.com/us/personal/en/cardholderservices/currencyconversion/index.html (or such other web page as they may determine). We will add the foreign exchange commission charge to your account.

Government Stamp Duty - €30.00 - Each year the government charges a tax (stamp duty) on all cards issued by financial institutions. The duty is applicable to each unique card/account you have in your own name, the amount of tax due changes from year to year depending on the amount set in each budget. Current rates and further details can be found at the Revenue Commissioners website.