Maximise your Avios, air miles and hotel points

My review of MBNA’s Horizon Visa credit card – the UK’s best credit card for travelling

Links on Head for Points may pay us an affiliate commission. A list of partners is here.

This is my review of MBNA’s new Horizon Visa credit card.

Yesterday I wrote about how MBNA has pulled the plug on the UK Etihad Guest credit card from 27th July.  This is also now confirmed as the final date for the MBNA American Airlines credit card.

I also expect that the Lufthansa, United and Emirates cards will also be closed on 27th July.  MBNA may be staggering the letters or it may be staggering the closing dates, it isn’t clear.  The Virgin Atlantic MBNA credit card is closing earlier, in the first week of July.

MBNA Horizon credit card review

If you are looking for:

alternatives to the American Airlines credit card, read this article

alternatives to the Etihad Guest credit card, read this article

alternatives to the Miles & More credit card, read this article

alternatives to the Emirates Skywards credit card, read this article

alternatives to the United MileagePlus credit card, read this article

Obviously holders of the MBNA Virgin Atlantic cards can simply switch to one of these two new Virgin Money-issued Virgin Atlantic cards.

However, MBNA is desperate for you to stay

All holders of the Etihad, American, Lufthansa, United and Emirates airline cards are being offered a new MBNA Visa product called Horizon.

This card is not available to the general public.  You will only get it if you are a holder of a co-brand card which is being closed.

Horizon is, frankly, great.  My best guess is that it will be the least profitable credit card in the country!

Just look at this for the list of benefits:

No annual fee

0.5% cashback on all your spending

No foreign exchange fees

Free cash withdrawals, both in the UK and overseas (although you pay interest from the date of the withdrawal)

Some people are being offered a cash incentive to retain this card until October!

I mean …. where is MBNA going to make any money here?!  They give you 0.5% cashback on the back of receiving a 0.3% interchange fee.  They won’t make any money when you use the card abroad.  They won’t make any money – apart from a tiny interest charge – when you withdraw cash on the card.  They won’t make any money on annual fees.  And, hopefully, they won’t make any money off you in interest charges because you’re not that stupid.

The only tiny catch is that the 0.5% cashback is paid on transaction multiples of £2.  This means that a £1.99 purchase earns nothing and a £7.99 purchase only earns 3p (0.5% of £6).

The APR is 22.9%, with a higher 27.9% rate applying to cash withdrawals.

MBNA Horizon credit card review

Should you keep this card?

I currently have the MBNA Lufthansa credit card which I am expecting to see closed very shortly.  My gut feeling was that I would be cancelling the replacement MBNA card before it even arrived.

(When my MBNA BMI Diamond Club credit card was closed, MBNA chose to give unprofitable customers like me a replacement card with zero benefits to encourage us to leave, which I did.  Profitable customers got a better deal.  This time everyone seems to be getting the same good deal.)

If I am offered the Horizon Visa card when / if my Lufthansa credit card is closed, I will be keeping it.

I won’t use it much in the UK.  0.5% cashback is fine but I can get a far better return from the IHG Rewards Club Premium MastercardAs I calculated in this article, you should expect to get an overall return of 2.3% on your first £10,000 of spending on that card.  Even when you have triggered the free night, the two IHG points per £1 are worth 0.8% back.

You can also get between 2.4% and a whopping 12.3% back on the new Virgin Atlantic credit cards (my maths is here) although you need to be a regular Virgin Atlantic flyer to maximise that value.

However, as a card to use when I am travelling, this will do the trick.  0.5% cashback on my holiday spending and no FX fees is a great deal.  Tandem has the same benefits including free cash withdrawals but Tandem is unlikely to offer the same chunky credit limits that MBNA usually gives.  Tandem also does not offer free UK cash withdrawals.  That said, one upside with Tandem is that cashback is paid monthly whilst MBNA is only paying out annually.

Conclusion

I have no idea what MBNA’s strategy is with Horizon.  Stopping your existing customer base from defecting by paying them to stay – which is effectively what MBNA is doing here – doesn’t make a huge amount of sense in the long run.

Whilst I admit that MBNA runs a very impressive operation, almost up to Amex standards, holders of the co-brand cards were primarily loyal to the airline and not to MBNA.  Perhaps they are hoping that most of their customers won’t be aware that they can continue to earn American, Lufthansa, Etihad etc miles via the Starwood Amex, Amex Gold, HSBC Premier etc and will stick around.

If you are being transferred to a Horizon Visa, I would think twice before cancelling it unless you already have another option for foreign spending with a good credit limit.  You can feel happy tucking it into your passport and focusing your UK card spend elsewhere.


Want to earn more points from credit cards? – June 2022 update

If you are looking to apply for a new credit or charge card, here are our top recommendations based on the current sign-up bonuses.

In February 2022, Barclaycard launched two exciting new Barclaycard Avios Mastercard cards.

Until 18th July 2022 there is an astonishing special offer on these cards. You get 50,000 Avios on the Avios Plus Mastercard and 10,000 Avios on the free Avios Mastercard. You can apply here. We strongly recommend getting the Avios Plus card whilst this offer is running.

You qualify for the bonus on these cards even if you have a British Airways American Express card:

Barclaycard Avios Plus card

Barclaycard Avios Plus Mastercard

50,000 Avios for signing up (A CRAZY SPECIAL OFFER!) and an upgrade voucher for spending ….. Read our full review

Barclaycard Avios card

Barclaycard Avios Mastercard

10,000 Avios for signing up (SPECIAL OFFER) and an upgrade voucher for spending £20,000 Read our full review

You can see our full directory of all UK cards which earn airline or hotel points here. Here are the best of the other deals currently available.

SPECIAL OFFER: The sign-up bonus on Amex Gold is increased from 20,000 Membership Rewards points to 30,000 Membership Rewards points until 19th July 2022. This card is free for the first year.

British Airways BA Premium Plus American Express Amex credit card

British Airways American Express Premium Plus

25,000 Avios and the UK’s most valuable card perk – the 2-4-1 voucher Read our full review

American Express Amex Gold

American Express Preferred Rewards Gold

Your best beginner’s card – 30,000 points, FREE for a year & two airport lounge passes Read our full review

American Express Platinum card Amex

The Platinum Card from American Express

30,000 points and an unbeatable set of travel benefits – for a fee Read our full review

Virgin Rewards Plus credit card

Virgin Atlantic Reward+ Mastercard

15,000 points bonus and 1.5 points for every £1 you spend Read our full review

Earning miles and points from small business cards

If you are a sole trader or run a small company, you may also want to check out these offers:

Amex Platinum Business American Express

American Express Business Platinum

40,000 points sign-up bonus and a long list of travel benefits Read our full review

American Express Business Gold

20,000 points sign-up bonus and free for a year Read our full review

British Airways Accelerating Business American Express card

British Airways Accelerating Business American Express

30,000 Avios sign-up bonus – plus annual bonuses of up to 30,000 Avios Read our full review

Capital On Tap Business Rewards Visa

10,500 points bonus – the most generous Avios Visa for a limited company Read our full review

For a non-American Express option, we also recommend the Barclaycard Select Cashback card for sole traders and small businesses. It is FREE and you receive 1% cashback on your spending.

Barclaycard Select Cashback credit card

1% cashback (3% on business travel for four months) and no annual fee Read our full review

Comments (161)

This article is closed to new comments. Feel free to ask your question in the HfP forums.

  • Roger1* says:

    Just had 2x SMS and an e-mail from AwardWallet warning me that some M&M miles will expire on 30 June 2018. Presumably these are those credited in June 2015 and I can look forward to similar future messages.

    Rob, you suggested posting expiring Miles&More Miles to Heathrow Rewards. Yes, I’ll do that for my existing HR account. But what about Mrs Roger’s expiring M&M miles?

    I believe only 1 HR per family is allowed. I’m checking how Mrs Roger can open her own HR account. Is a different e-mail address enough? Thanks.

    • Genghis says:

      If you live at 1 The Street, does she not live at 1a The Street?

      • Alan says:

        Indeed, or if you call them they can manually create an account for another person at the identical address.

  • Rob says:

    There is something in the theme coding which is stopping it showing on desktop. Need to get the IT guy to look at it.

  • Zed says:

    So is this new Horizon card better than the Halifax Clarity overall?

    • Rob says:

      It is 0.5% better!

      • Zed says:

        So the exchange rates will be the same when abroad? And no fees either?

        • Genghis says:

          There is evidence that MC (Clarity) has better rates than Visa (Horizon) but not 0.5% on the gross better

  • Roger1* says:

    Ah, thanks, Genghis.

    Same postcode must be OK as several addresses share the same postcode anyway.

  • Optimus Prime says:

    Thanks, I might go for it once the Lloyds Avios cards are defunct.

  • Heather says:

    Off topic a bit, but related to rewards cards. I’m a couple of months away from spending enough on the Hilton Barclaycard to get gold for next year. Any idea whether it’s worth continuing, will they still honour the gold if I spend the 10k?

    • Alan says:

      Why wouldn’t they? We haven’t heard that card is going anywhere (yet!)…

  • the_real_a says:

    But there many sneaky fees… Illiquid currency fees in asia. Weekend FX fees everywhere. Fees if you go over £200 ATM each month.

    So as long as you are not in Asia, do not use the card on a weekend and use the ATM a lot, then yes its great.

  • Matthew says:

    Well it was enevitable wasn’t it. The letter dropped on my doorstep today. Think I will keep the card purely for the no fees abroad! Such a shame about losing the virgin Amex!

This article is closed to new comments. Feel free to ask your question in the HfP forums.

The UK's biggest frequent flyer website uses cookies, which you can block via your browser settings. Continuing implies your consent to this policy. Our privacy policy is here.