What are the best credit card sign-up deals for July 2018? – plus a news round-up

UPDATE – APRIL 2024:  This article is now out of date, but don’t worry.  We produce a monthly directory of the top UK travel credit card offers – please click HERE or use the ‘Credit Cards’ menu above.  Thank you.

SPECIAL OFFER: Until 12th May 2024, the Capital on Tap Business Rewards Visa card is offering a bonus of 30,000 points, convertible into 30,000 Avios. You must have a Limited Company to apply. Click here to learn more and click here to apply.

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It is time for our regular round up of what is coming and what is going in the world of UK airline and hotel credit card sign-up deals.

The market is slowly coming to terms with the interchange fee caps and is moving forward.  The key news in June was the surprise closure of the Tesco Premium credit card and notification of the official closing dates for the United, Emirates and Lufthansa Miles & More credit cards.

Our directory of the 16 main UK travel credit cards can be found by clicking the ‘Credit Cards’ tab at the top of the site or – for email, Flipboard, Apple News or mobile readers – by clicking here.

What is new in the last month?

The Tesco Premium credit card was closed

This was a bit of a surprise, especially as the current sign-up bonus – the first for some time – was meant to run until 11th July.  It is relevant to HFP because Clubcard points convert into Avios and Virgin Flying Club miles.

The card may be a victim of the closure of Tesco Direct on 9th July.  If you spent over £5000 per year with Tesco on this card, including petrol, you received an end-of-year bonus of another 5,000 Clubcard points (12,000 Avios).  A lot of people were using spending via Tesco Direct to hit this target.

I have no idea if the card will return in a new guise.  It is apparently remaining open for existing cardholders.

The United, Emirates and Lufthansa cards are closing in July

MBNA has finally announced the closing date for the last three remaining airline cards.  All will be gone by the end of July.

You will be swapped onto their Horizon Visa card.  This is a surprisingly impressive card to use when travelling as I explained in this article.

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

Some Lufthansa news is coming ….

I had a call with the Miles & More team in Germany 11 days ago.  They told me that cardholders would be contacted ‘within 14 days’ (so it should be this week) with news about mileage expiry.

Remember that Miles & More miles expire three years after they are earned UNLESS you have a Miles & More credit card, or have status in the programme.  It would obviously be unfair if all UK credit card holders had a huge chunk of older miles expire on 30th September which – under the rules – is what would happen.

I also got a cryptic hint from the Miles & More team that Lufthansa has not necessarily given up on the UK market.  It is, after all, successfully running other cards across Europe despite the interchange fee cap.  Oddly I think the problem is more about the lack of card issuers wanted to enter this space than the airlines themselves:

American Express is a non-starter due to limited acceptance now that interchange fees are capped on Amex co-brand cards

MBNA / Lloyds is obviously a non-starter

Barclaycard appears to be exiting the reward space, having totally closed its IHG cards and having recently closed the Hilton card to new applicants.  Word on the street is that they claim their profitability requirements are not achievable if they are also funding rewards.

Creation is an option but, despite running the IHG and Marriott cards, they have not entered the airline space in a big way – you can’t count the useless Flybe credit card

New Day is the big question mark.  They issue a lot of rewards cards, including the new Amazon credit card, but have never operated in the airline space.  Would they choose to jump in now?

Other banks, such as HSBC, do not issue cards for third parties

A reminder that the Virgin Atlantic cards close on 6th July

The MBNA Virgin Atlantic cards will switch earlier than the other ex-MBNA cards.  Charges must post to your statement by 6th July if you want to earn Flying Club miles.  From the 7th, your card will be operating as a Horizon Visa.

This article will help you decide which of the two new Virgin Money issued Virgin Atlantic cards is best for you.  The website for the two new cards is here.

Remember that:

You CAN apply for the new cards – and get a sign-up bonus – if you already have the MBNA Virgin Atlantic credit cards.  You don’t need to wait for your MBNA cards to be closed on 7th July.

The free Reward card has a 5000 miles sign-up bonus, earns 0.75 miles per £1 and comes with a 241 or upgrade voucher for spending £20,000 per year

The £160 Reward+ card has a 15000 miles sign-up bonus, earns 1.5 miles per £1 and comes with a 241 or upgrade voucher for spending £10,000 per year

The cards are issued by Virgin Money so it is very unlikely that you will be conflicted due to having any other cards from the same bank

As long as your credit is excellent, picking up 5000 miles from the free Virgin Reward credit card seems a no-brainer especially as there is no minimum spend threshold.

Legal stuff: I need to tell you that the free Reward card has a representative APR of 22.9% variable.  The Reward+ 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%.

You can still get 2,400 Avios with the FREE Tesco credit card

Of the (few) temporary special offers currently running, don’t forget the 2,400 Avios or 2,500 Virgin Flying Club miles sign-up bonus on the FREE Tesco Clubcard Mastercard.

The bonus is actually 1,000 Tesco Clubcard points but that converts into Avios or Virgin miles at the rates above.

We rarely see a bonus on this card.  You don’t even need to hit a spend target – you get the bonus as soon as you make your first transaction.  The representative APR is 18.9% variable.  My full article on the deal is here and you can apply here.

The Tesco Clubcard Mastercard is the most generous free Visa or Mastercard for earning Avios unless you have a £75k+ salary and qualify for HSBC Premier.

Finally ….

Finally, remember that the Marriott Rewards Mastercard is returning in August.  We don’t know the terms yet but Creation will be the issuer.

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Want to earn more points from credit cards? – April 2024 update

If you are looking to apply for a new credit 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 with a bonus of up to 25,000 Avios. You can apply here.

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

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.

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:

SPECIAL OFFER: Until 12th May 2024, the Capital on Tap Business Rewards Visa card is offering a bonus of 30,000 points, convertible into 30,000 Avios. You must have a Limited Company to apply. Click here to learn more and click here to apply.

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.