Closing date for MBNA’s Virgin Atlantic credit cards announced – what should you switch to?

If you have the MBNA-issued Virgin Atlantic White or Black credit cards, you should have received a letter yesterday telling you about the closure procedure for these products.

When are the MBNA credit cards closing?

To earn Virgin Flying Club miles, charges must post to your MBNA card account by 6th July.

This is NOT the last date to spend on the card.  It is the last day for charges to hit your statement.  I would be wary of any spending after 1st-2nd July making it in time.

What will happen to my cards afterwards?

You card will become an MBNA Horizon Visa card.

MBNA Horizon is, to be fair, a very attractive card to take with you when travelling.  I wrote a full review of the MBNA Horizon Visa here which was published yesterday.

In summary, you get:

No annual fee

0.5% cashback on all your spending

No foreign exchange fees

Free cash withdrawals, both in the UK and overseas

Some people with the White card are being offered a cash bonus to keep their card open until the end of July

You can’t argue with that.  Even if you already have a credit card with 0% FX fees, it is very unlikely to give you 0.5% cashback on top!

Most people will find that it makes sense to keep the Horizon card tucked away in their passport for use when travelling.  If your credit limit is very high and your holiday spending modest, you may want to have it reduced in order to make it easier to get other credit cards.

Will I get a refund of the fee if I have the Black card?

Yes.  A pro-rata fee refund will be paid at the end of July as long as your Horizon card is still open.  This is another reason not to cancel it immediately on 7th July.

What happens to my earned or part-earned upgrade vouchers?

That is not clear, unfortunately.  Hopefully we can get some clarification.  It is very poor of MBNA not to address this in the letter.

If you still want to continue earning Virgin Flying Club miles after 7th July, you need to apply for one of the two new Virgin Atlantic Mastercard credit cards, issued by Virgin Money.

You can apply for new cards even though you currently have the MBNA card.  You WILL receive the sign-up bonus.

You can see full details of the new Virgin Atlantic credit cards, and apply, by clicking here (free card) and here (paid card).  The main marketing website is here.

What are the two new Virgin Money Virgin Atlantic credit cards like?

Here are the key features:

You can choose between a free Virgin Atlantic Mastercard and a paid Mastercard, with a 5,000 mile and 15,000 mile sign-up bonus respectively – you get this bonus even if you have have the MBNA cards

The earning rates are EXCELLENT.  0.75 miles per £1 on the free card and 1.5 miles per £1 on the fee card.

The new Virgin credit cards have a 2-4-1 voucher which works like the BA Amex voucher.  But … and this is a big ‘but’ … you need to be Flying Club Gold to use it in Upper Class.  You need to be Flying Club Silver to use it in Premium (Virgin’s new name for Premium Economy).  A base level ‘Red’ member can only use it in Economy. 

Solo travellers can choose, instead, to upgrade a return Economy redemption flight to Premium Economy.  This is available to everyone regardless of status.  As the upgrade voucher is valid for two years, a couple could also benefit if they earned two vouchers in consecutive years or each had their own credit card.

All Virgin Atlantic credit card holders get free access to Virgin Money lounges around the UK 

Let’s look at the two cards in detail.

The FREE card – Virgin Atlantic Reward credit card

I am legally obliged to tell you that the representative APR is 22.9% variable.

This is what you get (full details are on the Virgin Money website here)

• No annual fee
• 5,000 miles with your first purchase (within 90 days of card opening)
• 0.75 Virgin Flying Club miles per £1 spent
• Double miles on online or call centre bookings with Virgin Atlantic and Virgin Holidays
• Unlimited free access to Virgin Money lounges across the UK
• 0% interest for six months on balance transfers (3% fee)
• Spend £20,000 in a card year and select a 241 voucher, upgrade voucher or another reward – more on those below

You can add one supplementary card during the application and up to two more later on.

You can apply for the FREE Virgin Atlantic Reward credit card here.

The annual fee card – Virgin Atlantic Reward+ credit card

This card has a representative APR of 63.9% based on a notional £1200 credit limit and the annual fee.  The representative APR on purchases is 22.9%.

This is what you get (full details are on the Virgin Money website here):

• £160 annual fee
• 15,000 miles with your first purchase (within 90 days of card opening)
• 1.5 Virgin Flying Club miles per £1 spent
• Double miles on online or call centre bookings with Virgin Atlantic and Virgin Holidays
• Unlimited free access to Virgin Money lounges across the UK
• Free global wi-fi access via Boingo
• 0% interest for six months on balance transfers (3% fee)
• Spend £10,000 in a card year and select a 241 voucher, upgrade voucher or another reward – more on those below

You can add one supplementary card during the application and up to two more later on.

You can apply for the Virgin Atlantic Reward+ credit card here.

How do the annual bonus rewards work?

Your reward is triggered IMMEDIATELY upon hitting the spending target.  The target is £20,000 in a card year for the free Virgin Atlantic Reward Credit card and £10,000 in a card year for the £160 Virgin Atlantic Reward+ credit card.  You do NOT need to wait until the end of your membership year before you receive your reward.

This is what you can pick from:

All Flying Club members:

A 2-4-1 voucher, valid for two years, for a Virgin Flying Club redemption in Economy, or

An upgrade to Premium when you book an Economy reward flight (requires reward availability in Premium)

Flying Club members with Silver status can choose from:

A 2-4-1 voucher, valid for two years, for a Virgin Flying Club redemption in Premium or Economy, or

A Virgin Clubhouse lounge pass for Heathrow or Gatwick (requires a same-day Virgin Atlantic flight), or

A return upgrade to Premium when you book an Economy reward flight (requires reward availability in Premium)

Flying Club members with Gold status can choose from:

A 2-4-1 voucher, valid for two years, for a Virgin Flying Club redemption in Upper Class, Premium or Economy

TWO Virgin Clubhouse lounge passes for Heathrow or Gatwick (require same-day Virgin Atlantic flights)

A return upgrade to Premium when you book an Economy reward flight (requires reward availability in Premium)

Taxes and charges are due on ‘free’ 241 seats in the same way as the British Airways American Express 241 vouchers.  Vouchers are valid for two years and you must fly the outbound leg of your trip before the expiry date.

Interestingly, the 241 voucher flight does NOT have to originate in the UK which will benefit some expat readers.

In April I wrote a Q&A piece to answer some questions raised by readers about the cards, which may answer any questions you have.  You can find that here.

You can learn more about both cards, and apply, on the Virgin Money website here.

---

How to earn Virgin Points from UK credit cards (April 2024)

As a reminder, there are various ways of earning Virgin Points from UK credit cards.  Many cards also have generous sign-up bonuses.

You can choose from two official Virgin Atlantic credit cards (apply here, the Reward+ card has a bonus of 15,000 Virgin Points):

You can also earn Virgin Points from various American Express cards – and these have sign-up bonuses too.

American Express Preferred Rewards Gold is FREE for a year and comes with 20,000 Membership Rewards points, which convert into 20,000 Virgin Points.

The Platinum Card from American Express comes with 40,000 Membership Rewards points, which convert into 40,000 Virgin Points.

Small business owners should consider the two American Express Business cards. Points convert at 1:1 into Virgin Points.

Click here to read our detailed summary of all UK credit cards which earn Virgin Points. 

(Want to earn more Virgin Points?  Click here to see our recent articles on Virgin Atlantic and Flying Club and click here for our home page with the latest news on earning and spending other airline and hotel points.)