New sign-up bonus: get 15,000 Etihad Guest miles via their credit card

MBNA has brought back a special sign up bonus on the free Etihad Guest credit card – 15,000 miles.

Etihad launched their UK credit card back in May 2013. Even accounting for the fact that the card was free, the sign-up bonus was a little underwhelming – 5,000 Etihad Guest miles.

Since then they have run various temporary promotions which saw the bonus pitched at 12,000, 17,000 and 20,000 miles.  Just before the interchange cap came during Winter 2015, they launched the most generous mileage offer on a free UK credit card since American Airlines offered 35,000 miles back in April 2013 – 25,000 Etihad Guest miles.

I doubt we will be seeing 25,000 Etihad Guest miles again.  However, the new bonus of 15,000 Etihad Guest miles – for a FREE credit card – is excellent.

Full details are on the Etihad website here.  The deadline to apply is 31st May (now extended to 7th June).

The card has a representative APR of 22.9% variable.  You should NOT be getting this card – or any loyalty credit card, to be frank – if you are likely to run a balance.

Etihad card

Here are the key facts:

The cards are a double pack of American Express and Visa

There is no annual fee

You earn 1.5 miles per £1 on the Amex and 0.75 miles per £1 on the Visa

The issuer is MBNA, so no churning – it is likely you won’t be able to get another bonus in the future on this card if you apply now

And the rules for this promotion:

You receive the standard 5,000 miles for spending £250 within 30 days

You receive an additional 10,000 miles for spending £2,000 within 90 days

All in all, the targets are very reasonable, especially as spend on the both the Amex and Visa cards count towards the target.

Other perks include bonus miles on any Etihad flights taken in Business or First Class within 90 days of taking out the card, and Etihad Guest Silver status if you take one return flight with Etihad within a year.  Flights must be purchased using the credit card to qualify.

That’s the good news – now for the bad

Etihad Guest underwent a major devaluation in July 2015.  This pushed up the prices of redemptions sharply, as well as adding a fuel surcharge.

Between London and Abu Dhabi you are currently looking at (return):

  • Economy:  62,044 miles plus $100 fuel surcharge
  • Business:  131,928 miles plus $200 fuel surcharge
  • First:  175,465 miles plus $300 fuel surcharge

If you want to check the pricing on other routes, the online Mileage Calculator is here.

Of course, you should look at these numbers in the context of Avios.  Given a choice between using 120,000 Avios + £500 of charges to fly Club World to Abu Dhabi or Dubai, versus 132,000 Etihad Guest miles + around £500 of charges to fly the A380 or Boeing 787 Business Class Studio it is still no contest.

Etihad Guest also gives you free chauffeur transfers in Business Class and First Class at both ends as well.

One way redemptions are possible for half the numbers quoted above, which is helpful if you are only looking at earning miles via the credit card.

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What can you now do with your 15,000 sign up miles?

There is no point in earning these miles unless you have a plan to spend them.  Etihad has a number of airline partners you can redeem on but most are impractical for a UK resident.

If you thought that you could put through enough spend to reach a total of 66,000 miles, you would be able to redeem for a one-way Business Class Studio flight to Abu Dhabi on the A380.  I genuinely believe that this is the best business class experience currently available.  I recommend reading my review of the Business Studio on the new A380 aircraft.

A 20% bonus on partner miles conversions

As a reminder, Etihad is also currently offering a 20% bonus if you convert miles from selected third parties into Etihad Guest before the end of April.

The list of partners offering a 20% bonus is here.

The downside is that American Express in the UK is NOT included.  Etihad partners with American Express Membership Rewards and you can top up your account via them at 1:1 but you will not get a bonus.

You WOULD get a 20% bonus on transfers from Heathrow Rewards and the major hotel schemes.  Even Starwood Preferred Guest is included, so you get the standard 5,000 bonus miles for moving 20,000 Starwood points and then a further 20% on top.

HSBC Premier is also a partner and is included in the 20% deal.  You can get a further 20,000 Etihad Guest miles by signing up for the £195 HSBC Premier World Elite MasterCard and a further 20,000 miles if you managed to spend £12,000 in the first year.  You must be a HSBC Premier current account customer to apply for this.

Is it worth pushing spend into Etihad Guest?

If you are starting from scratch, this promotion is probably best if you are a solo traveller and have access to some Amex Membership Rewards points to top up your account.

Some other points to think about:

Remember that Business Class and First Class redemptions come with free chauffeur transfers in Abu Dhabi (they will take you to Dubai if you want) and at 25 of their other outstations, including London.

Etihad Guest has family accounts allowing you to pool the miles earned by various people in one pot.  This makes it easier to reach the required amount for an award more quickly if other members of your household also take out their own cards.

You can use American Airlines miles to book Etihad flights. If you got enough miles via this promotion for one ticket, you could potentially use any AA miles you have for a second person or to come back.

Etihad has PointsPay. If you can’t redeem for a flight, you can transfer them to a ‘virtual’ (or indeed physical) Visa card at the rate of roughly 0.5p per mile. Not great, but you are effectively trading them for cash, making the sign-up bonus worth £75.

The miles will expire after two years – this will happen even if you have further activity on your account.

If you decide to apply, I recommend you join Etihad Guest first via this link so that you have a membership number to put on the application form. If you don’t, Etihad will open an account for you and it may take you a lot of telephone calls to find out the number and PIN.

The application page is here.  My full review of the Etihad credit card – which has been updated to reflect this offer – is here.

(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.  By recommending credit cards on this site, I am – technically – acting as a credit broker even though MBNA does not pay me a penny!  Robert Burgess, trading as Head for Points, is regulated and authorised by the Financial Conduct Authority to act as a credit broker.

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Comments

  1. I already hold the MBNA Emirates card, anyone know if that will effect the ability to takeout this as well?

    • Should be ok, if they reject you call and offer to shift part of your credit limit across so they have no additional exposure.

      • Genghis says:

        Yep. I’ve done that.

      • Does this generally work for any mbna cards? I got knocked back for the virgin card despite passing their eligibility test. I have another card (none airline) with them with a fair spare amount of credit.

        • Yes, MBNA have always been happy to shift balance between cards you hold with them (quite a logical policy actually if they look more at overall credit you have with them rather than how many cards) – used it a bit in the old bmi days!

    • Mr Dee says:

      I had 2 cards once but now I find it difficult to get approved for 2 at the same time.

    • Natalie says:

      They use standard Experian data to decide whether to give you the card or not. There is a pre screen section on the MBNA site which will give you a strong indication of acceptance – or not. And it is not a credit check so it doesn’t go on your credit file or affect your score. Worth doing this before you apply. NB Experian data is only updated once a month so if you had whopping balances on multiple cardsrecently cleared that could come into play :-)

  2. stuart says:

    If the goal is to check out the Etihad first apartment, starting from scratch, what’s the best way? Etihad points using MBNA, SPG and membership rewards, or look down the AA route (not an MR partner?)

    • guesswho2000 says:

      AA isn’t a MR partner, but is an SPG partner, so you can collect them via that route, and also indirectly via MR (MR-SPG-AA), though you only get 2 MR:1 SPG, so you can still build up a decent AA balance from the UK quite easily (there’s obviously the AA MBNA card too!).

    • ANA.

  3. We both have HSBC points but as HSBC have had good avios bonuses, the last couple of years, we may hold out for that later in the year( hopefully).

  4. I don’t know whether they still do, but Etihad used to allow cash + points redemptions whereby you could buy any extra points you needed for the booking at a very decent rate (something like 0.7p per point as I recall). I think there was a minimum ratio, something like you had to have at least 75% of the miles needed, or some such.

    • Yes, you can still do this. Not sure what % you can buy but there is a HFP article discussing it.

  5. TripleB says:

    They have some fairly cheap redemption levels with Virgin Australia if one is heading to Australia/NZ/Pacific – some examples:

    Sydney-Ayers Rock 10900 one way
    Sydney-Cairns 6900 one way
    Sydney-Queenstown 6900 one way (although a whack of taxes will be payable on this reward)

    Sure you can find discounted paid tickets on these routes (especially Cairns) … but those seats are generally on the 6am or in off peak season – so if you are booking a holiday in advance in peak tourist season then these are really good value if you don’t have the points balance for a long haul premium redemption

    • To be honest, ive found that with the VA thursday sale, those routes are usually well discounted, including at the more palatable times.

      Still nice to have an alternative option of course

  6. Graham Walsh says:

    This could be interesting for me as thinking of the Formula 1 in November. I could move my Amex MR to Heathrow and then collect the bonus miles and bingo, we have a business class trip.

    Just wondering as I hold the VA twin pack would I get this bonus. Possibly time to churn my VA Black.

  7. I held the premium Etihad Amex card last year – will MBNA pay me a welcome bonus on the free card?

  8. If anyone from MBNA is reading this, could we please have a Lufthansa card sign-up bonus soon? kthxbai

  9. stuart says:

    o/t but MBNA,

    Had a call from MBNA manager today regarding cancelling virgin card after they had applied a retention offer. We spoke of various things, but he happened to mention there is no official policy on reapplication (i.e. waiting 6 months) as each application is judged on it’s own merits. Also, should a subsequent application be approved at any time, the bonus applicable WOULD be available, even if it had been applied before and ALL (i.e. free and paid for) cards are separate products, even on the same brand, so can be held concurrently, subject to status.

    • Mr Dee says:

      Interesting about to cancel my black Virgin card, what is the retention offer?

      • Offered 5k points for £1k spend in 90 days. Met spend in about a week, points not awarded at statement date & told that I’d have to wait out the 90 days, specifically to stop you achieving the spend & still cancelling the card. Complaint raise, points awarded & card now closed.

  10. Looks like the Emirates cards have an enhanced sign-up bonus now too.

  11. They added that later. I mentioned it last week in the piece about shops now tracking.