Read answers to frequently asked questions, including what you can (or can’t) use a loan for and what credit scoring means.
With MBNA, you can borrow for a wide range of reasons from weddings to buying a new car. As a responsible lender, we do have some limits on what you may use a loan for.
We cannot provide a loan for:
- Buying property, such as land, house, council right to buy.
- Deposits on property.
- Deposits on timeshares.
- Buying shares.
- Illegal purposes such as drug related activities.
- Business purposes.
- Paying back a loan arranged through the Student Loans Company.
- Paying back debt for someone else - for example, a husband paying back their wife's debt.
- Day to day living expenses or household bills.
- Paying off arrears such as late rent or council tax.
These limits apply whether you want to borrow money for yourself or to help support someone else. For example, you can't borrow to give a family member a property deposit.
APR is the amount you're likely to pay on top of your loan each year, including interest and all fees and charges. It's shown as a percentage. The amount you pay is worked out based on how much you still owe over the duration of the loan, not the initial amount.
The representative APR (Annual Percentage Rate) is the rate we show when we advertise our credit products. It's the rate that most of our customers are likely to get when they apply for a loan within the rate to which the representative APR applies.
If you apply for a loan, the actual rate you're offered may differ from the representative APR. The rate we offer you will be based on our checks about you and your personal situation.
You can use the APR to compare the cost of credit products from other lenders.
Credit scoring is something that most lenders use to decide whether they'll lend money. When you apply for a loan, we work out a credit score for you.
This credit score is based on the details you give us, along with other information such as:
- Your employment history.
- How you manage your accounts.
We also use other information from credit reference agencies. These agencies include Experian, Equifax or Callcredit, who keep records on your borrowing and payment habits. This includes details on:
- How much you're borrowing right now.
- How well you've managed your past and current financial commitments.
We look at the level of risk involved when we decide whether to lend. If you have a number of missed or late payments you might be seen as a 'high risk'. If it appears that you're 'high risk' then we may refuse to offer you a loan. In some cases, we may still offer you a loan but at a higher rate of interest.
If you've got any concerns about your credit rating you can get a copy of your credit file with any of the credit reference agencies.
For the full list of ways to say hello, have a look at our contact us page.
Making sure you get a fair deal
We want you to find a product that's right for your circumstances, which is why we adhere to the Standards of Lending Practice, which are monitored and enforced by the Lending Standards Board.
To find out more you can read the statement of responsibilities (PDF), which details what's expected of us, the lender and you the borrower.