12 months interest-free credit on British Airways flights !

I have run a few posts recently about the 35,000 mile sign-up bonus on the American Airlines credit cards, issued by MBNA.

This is great deal – as long as you can make the £5,000 spending target within six months.  This is an example of where 35,000 AA miles can take you.

When I wrote my original post, I mentioned that MBNA offers 12 months interest free credit on American Airlines flights booked via aa.com and charged to the card. 

American Airlines

Reader Neil dropped me a line to say that, looking at his initial American Airlines credit card statement, 0% interest free credit applies to ANY flights booked via the aa.com website.  As all British Airways flights are bookable via aa.com, this effectively means that you can get 12 months free credit on BA bookings.

There are three things remember if you want to try this:

First, you would get double Avios points if you pay with a British Airways Premium Plus Amex for your BA flights.  You might find the double Avios more valuable than 18 months interest free credit.

Secondly, if you have an American Express Platinum charge card, remember that you need to pay for your flights with an Amex-issued Amex card to be covered under some parts of their travel insurance.  As the AA cards are issued by MBNA, you would not be covered.

Thirdly, if you decide to use your AA card for interest-free BA spending, you should stop using it for general spending.  This is because – rather sneakily – MBNA charges interest on all new purchase whether or not you settle your bill at the end of the month if you carry forward a balance.  For example, if you carry over £1,000 of aa.com spending and spend another £200 during the next month, you will be charged interest on that £200 even if you clear the bill at the month end.

That said, if you can work around the points above, this is another good reason to get the AA card before the 35,000 mile bonus is withdrawn at the end of May.

Up to 30% bonus when you buy Avios before 13th June
Do you know the expiry rules for your airline miles?
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  1. James67 says:

    I wonder if MBNA ring fence this flight spending. I would be wary of using it gor fear of a nasty surprize such as that many people undoubtedly get by taking up one of their heavily promoted balalance transfer offers.

    • I have added a 3rd bullet point to address this.

      • 21h21j says:

        Pretty sure MBNA say that they will use any payments against the highest apr first. Also my KLM flights booked on KLM.com are showing as 0% apr so definately not just flights from aa.com

        • callum says:

          All UK credit cards do, including the MBNA card. However, you are always charged interest on purchases – it is just waived if you pay off your statement in full. You wouldn’t be paying off the statement in full so that interest therefore won’t be waived.

          I’m not sure if all cards work like this, but it’s why you’re generally advised not to mix promotional rates with normal rates.

  2. flibbly says:

    I’m away from home at present, and don’t have my login details for MBNA with me, so I may well be wrong here, but I’m fairly confident I only got offered 12 months interest free not 18 months. Its possible different people got different deals of course.

    Also, as I mentioned the other day. My statement shows the interest free icon next to BA flights bought from ba.com not aa.com.

    • … which is just weird! I saw your other post but as I haven’t tried it myself I didn’t want to ‘officially’ spread this.

      It does now say 12 months interest free credit on the application form. I have amended the post title.

      • flibbly says:

        Thats fair enough. It seems they may be erroneously awarding this interest free option on far more than they intended (e.g. see Bobby’s post below)

  3. Idrive says:

    Hi i tried to book BA via AA but european flighrs (the ones i searched) were costing 3 times more! I will check again later today!

    • James67 says:

      Yes, changed day unfortunately. There was a golden era about 7 years ago when I was buying BA domestic flights at the basic £30 ow even at last minute. Saved a fortune on that but it hurt a lot when they finally got wise to it.

  4. Bobby says:

    just received my first statement and the 2.5k i spent on TACA through lifemiles.com is shown as 0% on the analysis page, I pay off in full so wont be testing it out.

  5. Has anyone had the points from their first statement show up in their AAdvantage account yet? I told them my a/c number in advance, but I’m wondering if they’ve just created a second account for me!

    • flibbly says:

      Yes, mine were there in a couple of days.

      • Ah thanks – will give them a buzz!

        • I wouldn’t bother today if I were you. I’ve spent the last hour trying to get this sorted and in the end you have to speak to the AA Advantage team in the states. it’s a public holiday over there apparently so will have to call tomorrow. MBNA created another AA account for me, despite me giving them my existing number and after several painful phone calls with people on at least three continents, I’ve given up for now!

        • momomo says:

          It has been 7 days since my fiancée’s statement and still no points. (For the record, she didn’t have an AAdvantage account on application; MBNA created one for her.)

          One MBNA rep told us it could take 5 working days for points to move across, another said 7 calendar days and the latest suggested they should appear very soon after the statement is printed and I should get in touch with AAdvantage. Those who have had points post all seem to have them within 48 hours of statement date.

          I’ll be calling AAdvantage tomorrow too.

        • Ah OK, that seems rather likely! Will try them later this week.

        • Argghh! Yes, as expected MBNA have gone and created a new account for me rather than using the one that I’d already given them! I don’t know why they don’t just have the option on the application form to enter your existing card number – would save all this hassle. Now (after 10 min on hold to MBNA to get the new a/c number) am on hold to AA to try and get them to merge accounts!

    • They should hit AA within 48 hours of your online statement being generated. If it has been longer than that then I would ring MBNA and see what number they used.

  6. Polly says:

    Just a thought, don’t you get 3 avios per £1 spent when booking directly with BA, using the BAPP? That would make the booking more valuable?

  7. Blackberryaddict says:

    I bought some flights on AY for work, using our corporate travel agent – even those are showing as interest-free on my statement.

  8. Sir Stamford says:

    I think there is also a fourth point to note:

    Don’t forget the 10% discount you get for using selected MBNA Diamond Club cards or even as a former BA shareholder by booking directly with BA. If you assume half of the £5k spend is fares and the rest on taxes and charges, you are potentially losing out on £250 by booking BA flights on AA.com.

    Sir Stamford

  9. It was me that mentioned this to Raffles and I should point out that I didn’t make my booking through aa.com but on the normal BA website. The amount still came up with the 0% rate and with the same promotional code as flights booked with AA – JKDMVNFGG.

    • Ah, OK! Didn’t know that. Ironically, though, someone else I know told me that he had also done a BA booking on the AA site and got it at 0%!

  10. Ben E says:

    Just applied and want to check: I don’t already have an AA acct – assume they’ll create one for me?

    • Yes, they will. However, you may end up calling MBNA and mucking about for ages trying to find the number! If I were you, I would open one now at aa.com – at least then you know the number and password.

  11. Manvivant says:

    I have read previously about buying refundable flights using the interest free credit to meet the spending thresholds. Bar making sure you don’t set a direct debit to pay off the amount automatically, are there any other things to watch out for when doing this? I seem to recall people mentioning a negative points balance arising but I’m not 100% clear on what that means. If anyone is able to explain the negative points balance point that would be great!

    • When you refund the flight, the base points for the flight will be taken away from your card account balance.

      Take the AA card. If you refund a £5,000 flight on the Visa, your MBNA account will show you have ‘- 3,750 miles’ to transfer across. However, MBNA will NOT take these miles out of your AA account. Your MBNA account will simply run a negative milage balance until you have spent enough to wipe out the 3,750 mile deficit.

      The other obvious point is to be 120% sure that you are booking a refundable flight. Check every bit of the terms and conditions before buying. With BA, it is easy as the original booking screen has a ‘refundable fares’ drop down box.

      • Hmm – are you 100% sure about this, Raffles? Reason I ask is with my United card (also from MBNA) they did just that!

        I had a Shell transaction of just over £50 – received the miles. However the 4sq credit was slow to appear and ended up on the next statement. I had no other transactions that month and then noticed my United statement showed the following:

        03/27/2013 MBNA CC Purchase 51
        04/23/2013 MBNA CC Purchase (15)

        (with my balance going down by 15 points in-keeping with this)

        I’m happy enough in that I only paid 36 in the end so it’s appropriately I only receive that number of points but thought it might be an interesting datapoint…

      • Manvivant says:

        Many thanks, Raffles.

        Just so I’m clear. If you refund the flight prior to redeeming the 35,000 miles (based on your figures above) you would be left with 31,250. If you were to cancel after you had redeemed the 35,000 then you would be left with 3,750 miles to gain before you reached zero (and could then start earning and spending again). Quite new to the world of points/miles etc. but thought this looked like a good way to build up some points! Your blog is a fantastic resource that’s for sure.

        • No, not in the sense you use the word ‘redeem’.

          Your 35k will already have gone to AA, assuming you do not do the refund until the next statement period. MBNA probably cannot touch those. The refund does not impact them.

          MBNA simply creates a negative miles balance internally and will not any more to AA until you have earned more than 3,750.

          (However, see Alan’s experience with the United card, where miles WERE deducted. With the BMI card, though, MBNA never did remove miles when your monthly total was negative. So the AA card could go either way!)

  12. jason says:

    Anyone got their 35K signing up bonus yet?

  13. idrive says: