Some favourite cards in the flexible rewards category are MBNA Rewards Mastercards.
For 2 of these cards, some big changes have been made that you’ll want to be aware of.
Here’s what’s changed, and if it’s for the better or not.
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MBNA Rewards World Elite Mastercard
Let’s start with the card getting the biggest overhaul – the
Earning Rewards
This card is getting a major overhaul in the rewards department.
Previously, you earned a straightforward 2 points per $1 spent on all purchases. But MBNA is moving away from that, and is instead offering bonus rewards on select categories (and lots of them).
Here are the new earn rates:
- 5 points per $1 spent on groceries, restaurants, and recurring bills ($50,000 annual cap on each category), and
- 1 point per $1 spent on all other purchases.
Since each MBNA Rewards point is worth 1 cent each when redeemed for any travel, it’s a return of up to 5% on purchases.
But overall, how does it compare to before? Well before, you would have earned a simple 2% back on everything.
But now, using a typical $2,000 monthly spend – that’s increased to a 2.6% average return on travel. It’s a much better overall return.
But what about cash? Each MBNA point is worth 0.83 cents each when redeemed for statement credits. That will give this card an overall return of 2.16%.
And that compares favourably with many of our top cash back credit cards. Here is the average earn rate for 4 of them:
Brim World Elite Mastercard – 2.25%Scotia Momentum® Visa Infinite* Card – 2.07%BMO CashBack® World Elite®* Mastercard®* – 2.05%SimplyCash® Preferred Card from American Express – 2%
It’s a very competitive cash back credit card now, and will be among the best for our annual credit card rankings in 2021.
Is there a downside? Sure there is. For those who primarily use this card at places that don’t count in the bonus categories (hello Costco), then you’ll be losing out on rewards.
But overall, you’re looking at much better rewards.
Insurance changes
The World Elite card is also getting some upgrades in the insurance department.
Nothing is being lost, but a few coverages are being added – flight delay, baggage delay, lost or stolen baggage, and mobile device coverage.
Here are the details on all the insurance coverage being provided:
MBNA Rewards World Elite® Mastercard® Please review your insurance certificate for details, exclusions and limitations of your coverage.Extended Warranty 1 year Purchase Protection 90 days Price Protection Yes Mobile Device $1,000 Travel Accident $1,000,000 Trip Interruption $2,000 Flight Delay $500 Baggage Delay $500 Lost or Stolen Baggage $500 Rental Car Theft & Damage Yes Rental Car Accident $200,000 Rental Car Personal Effects $1,000
It’s a much better package, especially compared to other World Elite Mastercards. The one new coverage that stands out is mobile device insurance. Get coverage for something that goes almost everywhere you do.
Annual fees
There’s one slight downside, and it has to do with annual fees. The annual fee for the primary cardholder is staying the same at $120.
But if you add authorized users, those are going to cost you now. They will now be $50, instead of being free.
But other than that, there really isn’t much to quibble about with these changes.
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MBNA Rewards Platinum Plus Mastercard
While not as drastic, the no fee
Earning rewards
There are 2 changes to the rewards.
The overall structure is staying the same – you’ll earn 2 points per $1 spent on select categories (which have annual caps), and 1 point per $1 spent on everything else.
Previously, those 3 categories were gas, groceries, and restaurants.
But now, it’s recurring bills, groceries, and restaurants.
And the annual caps have increased. Previously, they were $5,000 in each category, but that’s now doubled to $10,000.
So whether or not this change is good for you depends on your spending patterns. It’s certainly nice to see the increased limits on each category.
If you don’t spend much on gas, it’s probably better. But if you’re a heavy gas consumer, then possibly not.
As for its cash value, it still won’t rank well among no fee cash back credit cards since each point is only worth 0.5 cents in this regard. When redeemed for travel (point value of 1 cent), you’re looking at a terrific return of 1.4%. But with cash, it’s only half that at 0.7%. There are other cash back credit cards that have an average rate of return of 1% or more.
Insurance changes
There are also changes to the insurance. In this case, it’s a good news/bad news situation.
First, the bad news. All 3 rental car insurance coverages are being dropped.
But mobile device insurance is being added in their place. It will be a rare no fee credit card that offers this coverage.
Here are the full details on the new insurance coverages.
MBNA Rewards Platinum Plus® Mastercard® Please review your insurance certificate for details, exclusions and limitations of your coverage.Extended Warranty 1 year Purchase Protection 90 days Mobile Device $1,000
Otherwise, those are the only changes to this card. It’s still positioned to be a strong contender as a no annual fee credit card.
What are your thoughts
So, what are your thoughts on the changes?
Overall, we’re pleased with the changes we’ve seen, and it will make these credit cards more competitive when compared to others.
But that’s us – what about you?
Let us know in the comments below.
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