The IHG credit cards are back – and with a sign-up bonus (Part 2)

This is the 2nd part of my analysis of the two new IHG Rewards Club credit cards.  Part 1, focussing on the free card, can be found here.

The paid-for version – IHG Rewards Club Premium MasterCard

IHG Rewards Club credit card premium

The headline features of this card are:

£99 annual fee

20,000 IHG Rewards Club points for joining and spending £200 in the first three months – these are worth about £80 of free hotel rooms or transferable to 4,000 Avios points or other airline miles

Platinum status in IHG Rewards Club for as long as you hold the card.  This is no longer the top level following the launch of the Spire tier.  However, if you do a few Holiday Inn, Holiday Inn Express, Crowne Plaza or Indigo stays then it is worth having.  It is occasionally enough for a Club room upgrade at a Crowne Plaza.

2 IHG Rewards Club point per £1 spent.  I value IHG points at 0.4p so this is a 0.8% return.

4 IHG Rewards Club points per £1 when you pay at IHG hotels.  This would be roughly a 1.6% return which is very good.

4 IHG Rewards Club points per £1 when you use the card abroad.  As the card has a 2.99% FX fee you would be better off using a card without FX fees instead.  I only value the points at 1.6%.  The only reason to use the card abroad would be to work towards your free night voucher or earn additional IHG status points.

A free night voucher for any IHG hotel for spending £10,000.  Use it at the InterContinental Paris, London, New York etc and you could be looking at £250 of value.

Representative APR is 41.5% variable including the £99 fee, based on a £1200 credit limit

There is a minimum income requirement of £10,000, although Creation stress that this cannot come from unemployment benefit!

It is important to note that points from day-to-day spend count towards elite status.  The sign-up bonus does NOT count towards elite status.  A heavy spender could get Spire Elite status simply by putting £37,500 of spending through this card.

According to the terms and conditions:  “If your IHG Rewards Club Credit Card account is closed within the first 6 months of opening, IHG reserves the right to deduct the 20,000 bonus Rewards points from your IHG Rewards Club account.”  As you do NOT get a pro-rata fee refund for cancelling, this is unlikely to be an issue for anyone.

I have one minor concern.  The rules state, re the free night:

“On the anniversary of your account opening, so long as your account remains active, you will earn one free night voucher to redeem at any IHG property, provided you make annual Purchases totalling a minimum of £10,000.”

The free night has always turned up within a few weeks of passing the £10,000 target.  One interpretation of this line is that you don’t get the voucher now until the end of your card year – although I am more inclined to think that someone at Creation’s law firm failed their English GCSE.

What do I think?

If you are ONLY looking to exploit the sign-up bonus then this is not the card for you.  You would be mad to pay £99 for a sign-up bonus worth £80 at best, especially as the points do not count towards status.  You should focus on the free card where the smaller 10,000 point sign-up bonus is worth £40.

For long term spending, however, this is a very good card.   I have had the Barclaycard version of this card for a couple of years and I put a lot of money through it, including tax payments.

Imagine spending £10,000 on the card in a year.  You would get:

20,000 IHG Rewards Club points, worth £80 or so, assuming all spend is in the UK and not at IHG hotels

Those points count towards status, which could be important if you are pushing for Spire Elite

Your free night voucher, worth say £250 if used at an expensive InterContinental

You are getting £330 of benefits for an annual fee of £99.  That is a gain of £231 or 2.31% of a £10,000 spend, which is excellent.

You also need to add in whatever value you ascribe to Platinum status in IHG Rewards Club.

I have just renewed my Spire Elite status for 2017 and it was almost entirely down to spending on this credit card.  Reaching Spire Elite via 75,000 status points triggers a bonus of 25,000 IHG Rewards Club points.  You could argue that this is an additional bonus for anyone who spends £37,500 on the card.

If you are looking for a new Visa or MasterCard and you have the ability to put £10,000 of spending through the card to trigger the free night, I would recommend it.

I would NOT necessarily recommend it if you will not spend £10,000 to earn the free night.  For low spenders, the higher earnings rate does not justify the £99 fee compared to the free IHG Rewards Club MasterCard.  The only exception is if you stay enough at IHG hotels to benefit from Platinum status but you don’t stay enough to actually earn it from your stays.

You can apply for the IHG Rewards Club Premium MasterCard here.

There is NO refer-a-friend deal available for these cards so you might as well apply directly via the links above.

(Want to earn more miles and points from credit cards?  Click here to visit our dedicated airline and hotel travel credit cards page or use the ‘Credit Cards Update’ link in the menu bar at the top of the page.)

Disclaimer: Head for Points is a journalistic website. Nothing here should be construed as financial advice, and it is your own responsibility to ensure that any product is right for your circumstances. Recommendations are based primarily on the ability to earn miles and points and do not consider interest rates, service levels or any impact on your credit history.

The IHG credit cards are back - and with a sign-up bonus (Part 1)
Lesson learned - how I saved myself a £261 fine for no-showing on an IHG reward night
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Comments

  1. Is this card worth having for converting points to Avios?

    • Tesco Premium is 0.6 per £1 rather than 0.4 here – but of course you get the free night voucher and fee lower.

  2. Is the SPG card likely to have an increased bonus any time soon ?

    • Would be surprised, as the card won’t exist soon given the Marriott takeover of Starwood completes this week or next week.

      • Ok thanks – I forgot about that!

      • Mycity says:

        Do we know what’s happening on this takeover what will happen to the SPG rewards programme will it become Marriott?

        • There will be a new merged programme (Marriott Preferred Guest?) launching January 2018.

          There may be some reciprocal status benefits between elite members of each programme from the legal completion of the deal which will be this month.

  3. Apologies, you’re right, it does. That may be funded by ASDA though as the Marriott card was never on there.

  4. Barry cutters says:

    Hi
    OT
    I’ve got 2 accelerate free nights to use and want to use them in London for a specific weekend. Intercontinental park lane is available , the Camden lock penthouse isn’t. Is park lane decent? It seems the most expensive if I was paying cash for it. Or any other recomendations welcome
    Thanks

    • Depends what you want in terms of location, room size and room quality. They are refurbing some rooms at Park Lane. However, if you have IHG status then CP City or Kensington may give you lounge access as an upgrade (or may not). If you need to be central than PL does the job.

  5. Bryan Roebuck says:

    I see that if you currently hold a Barclaycard IHG Visa you can still apply for the new Creation card.
    I have already achieved my Barclaycard free night would spending £10,000 still trigger a Creation free night in the same calendar year and if so could I maintain both cards to obtain two free nights in the coming years? I have a Marriott Creation card would this prevent me having an IHG one?

    • Almost certainly you can get 2 vouchers per year.

      Having 2 Creation cards seems fine.

      • Creation deemed 3 cards too many for me and declined my application. As I have a £20k credit limit over the 2 cards I asked if reducing them would enable them to accept my application (as MBNA do) and they said no! Will try an application for the wife next

  6. Mucky says:

    I triggered the Barclaycard IHG free night voucher, but my plans have changed and now need to use it for something else. Can I book a hotel stay now before the voucher expires for a future date that is after voucher expiy date?

  7. What’s the significance of it being a World MasterCard. Does this unlock any additional benefits from MasterCard?

    • Doubt it. Is the interchange fee higher? Need to put the 1st 8 digits of the mock up card into the HMRC website to check the fee.

      • Isolde says:

        Seems reasonable based on the mock up on the IHG / Creation website ….. 0.386%

  8. Hi all, just thought I’d let you know that my IHG status moved to ‘Ambassador Platinum’ this morning with the activity narrative ‘IHG Premium Credit Card PLTN Status Upgrade’ – considering I only got approved for the card on Monday evening, I am very pleased with that!

    • David says:

      I just looked at my statement and mine shows the same entry but I was spire already so no change for me. I applied Monday lunchtime and look forward to spending on the card.

    • Mr Dee says:

      Was the card approved instantly online as mine said they will write to me?

      • David says:

        Yes and an Email a few minutes later to say accepted. I think if they have to write to you it’s a decline 🙁

      • If it was a straight decline it would have told you. Yours probably just needs an underwriter – same happened with my first creation card and I got approved with £10k limit.

        • Mr Dee says:

          Thanks, will be a good card to have IMO especially after I cancel the virgin black cards

        • David says:

          Fingers crossed for you, hopefully you know either way in a few days but update the post.

  9. Brian says:

    Has anyone got anymore info on the timing of receiving the voucher? Would I be right in saying if you hit the £10k spend near the end of your card year you would likely be tied into another year at £99 fee due to waiting for the voucher? Thanks

  10. Andrew says:

    I have skimmed the posts, so apologies if the answer is there.

    How quickly is your IHG account updated to Platinum?

    I was approved three days ago, and received an email to state it was approved and told I was platinum. However this is not showing online. I called the bank and they said should be ‘instant’ and provided no other guidance on what to do.

    • Andrew, my status changed this morning having been approved on Monday.

      • Scottnothing says:

        Received an approval text last night and my status updated this morning. Impressed!

  11. Anyone managed to get both versions of the creation cards? Unsure whether they would let you have both.

  12. Roger says:

    Just thinking … The £99 card with platinum and a free night may be a better deal than the Intercontinental Ambassador 2nd IC weekend night free and platinum. Not too many ICs to be seen in my travels these days. Obviously, YMMV.

  13. Nathan says:

    Apparently Creation have deemed me ineligible to apply for their product. Oh well, there is as they say ‘a first time for everything’ I suppose.

  14. AndyS says:

    Does anyone know how long between statement generation and payment required? I need to time my application so that the bill will be due after payday! Assuming statement generated a month after acceptance

  15. Brian says:

    Hi do you think the 20k sign up bonus may be a temporary or permanent feature?

    I want to apply but was hoping to leave doing so until about October.

    Thanks