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MBNA SPG Credit Card Review
Do you use a rewards based credit card for the points? I know I do. Have you ever wondered which credit card gives you the best bang for your buck? That’s one thing that I always look for, the best value for your dollar. I do that whenever i’m in stores, restaurants and especially when buying a stock. Picking a credit card to use is no different for me and after doing some extensive research, I have found the card for me. That card is the MBNA Starwood Preferred Guest (SPG) Credit Card.
Why do I like the SPG credit card the most? Simply because it gives you a great return on your spending (with NO blackout dates), it has NO annual fee with free supplementary cards, it includes a comprehensive insurance package and they have a super fast online system (updates within minutes of transaction).
Lets talk a bit about their rewards program. SPG is a HOTEL points program that gives you points towards staying in Sheraton, Westin, 4 points, Luxury Collection, St. Regis, Meridien, and W hotels. SPG has been winning awards for many years now as the best rewards program out there.
How many points do you get for using the SPG credit card?
- You get 1 point for every $2 spent
- 5000 bonus points upon first purchase
- 5000 bonus points for your first stay (that you pay for)
- 5000 bonus points for every $10,000 that you spend for up to 15k bonus points ($30k spent).
For example, if you spend $30k in your first year and get all of your bonuses, you can obtain 40k points which is enough for 4 nights in a category 4 hotel (middle-upper class). After your first year, you get around 1 pt for every $1 that you spend up to $30k. After $30k spending, you only get 1 point for every $2 that you spend.
Here is the SPG rewards chart:
| Program: | Category | |||||
|---|---|---|---|---|---|---|
| 1 | 2 | 3 | 4 | 5 | 6 | |
| Free Night - Weekdays | 3,000 | 4,000 | 7,000 | 10,000 | 12,000 - 16,000 | 20,000 - 25,000 |
| Free Night - Weekends | just 2,000! | just 3,000! | 7,000 | 10,000 | 12,000 - 16,000 | 20,000 - 25,000 |
| Cash & Points | 1,200 Starpoints +$25 | 1,600 Starpoints + $30 | 2,800 Starpoints + $45 | 4,000 Starpoints + $60 | n/a | n/a |
| 5th Night Free | n/a | n/a | 28,000 | 40,000 | 48,000 - 64,000 | 80,000 - 100,000 |
| Room Upgrade | 1,000 - 1,500 | 1,000 - 1,500 | 1,000 - 1,500 | 1,000 - 1,500 | 1,500 - 2,750 | 1,500 - 2,750 |
| Suite Upgrade | 3,000 | 4,000 | 7,000 | 10,000 | 12,000 - 16,000 | 20,000 - 25,000 |
| 50% off Regular Rack Rates | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 |
| Nights & Flights | n/a | n/a | 60,000 | 70,000 | n/a | n/a |
An example rewards redemption:
Sheraton Bal Harbour Best Resort - Category 4 (Florida)
- March Price: $362USD/night (~$480 CAD inc taxes)
- Points Required: 10k points/night
- Spending Required: $10k (after first year, less during first year)
- Return on spending: $480/$10000 = 4.8% RETURN !
So, who has a 1% cash back card? :) This kind of return is a bit on the high end but I typically get around 2.5%-4% return / redemption. Their point system also has a bunch of great features like cash and points, 5th night free and SPG to airline point conversions. The cash and points system (one of my favorites) is where they let you combine cash and points towards selected SPG hotels who join the program. It’s really great for people who don’t have an obscene amount of points but want to stay at SPG hotels at a substantial discount. The 5th night free is just that, book 5 nights with any of their hotels on points, and you get the 5th night free. So if you booked a Category 4 hotel for 5 nights, it would cost you 40k points instead of 50k. Their SPG to airline points transfer system also offers generous perks where they give you an additional 5k points for every 20k spg points that you transfer. They support a large number of airline point programs (except Aeroplan) :(.
Some other features as mentioned before is a comprehensive warranty/insurance program which includes travel, car rental, and purchase/theft insurance along with double warranty on purchases (for up to 1 year).
Who is this card suited for? This card is best for those who like to travel and spend up to $30k on their primary credit card every year. If you don’t pay off your credit cards in FULL every month, this card is NOT for you. They charge around 20% interest/annum.
It may sound like I work for MBNA and even if I did, it would be easy to push this product. But alas, i’m just a regular Joe trying to get the best bang my buck, and the SPG credit card is on top of the rewards (no annual fee) credit card list. Anyone know if there’s a MBNA affiliate link? :)
For more info visit:
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21 Comments, Comment or Ping
1. Mark
Does anyone know of a card that pays points on cash advances ?
Thanks!
Dec 19th, 2006 @ 9:46 pm
2. FrugalTrader
Hey Mark,
I’ve read on the redflagdeals.com personal finance forum that the TD cashback visa gives you the cashback when you use the cash advance cheques. However, with that said, it is only beneficial if they DON’T start charging you interest from day 1 like most cash advances.
FT
Dec 19th, 2006 @ 9:57 pm
3. Mark
Thanks !
It’s only beneficial if you can pre-pay the credit card & don’t pay a cash advance fee, then you pay no interest on the advance, yet earn the points on what would otherwise be a cash transaction.
Just don’t screw up the pre-paying part :)
Dec 19th, 2006 @ 10:58 pm
4. FrugalTrader
Ah Mark, I see that you’re thinking. :) I was a little concerned at first because cash advances are generally considered a no-no.
FT
Dec 20th, 2006 @ 7:37 am
5. FinanceNovice
Is the 4.8% return on 362USD take into account the hotel’s retail price or the price from a discounter (Expedia.com, Orbitz.com)? I would be interested on how the rate of return compares using the discounted price. Or better yet venturing outside the Starwood hotels for a comparable on-sale hotel stay. Something tells me the 4.8% might be less.
Let me know your thoughts.
http://moneyforthelittleguy.blogspot.com/
Dec 29th, 2006 @ 7:44 pm
6. FrugalTrader
Hi FinanceNovice!
The 4.8% is by no means a guaranteed return, it is actually on the high end from my research. From my personal point claims, I have averaged around a 3% return.
The prices listed on SPG.COM are the lowest possible prices (besides priceline). If you find a lower price, SPG will give you the lower price plus some extra points on top of that.
FT
Dec 29th, 2006 @ 9:39 pm
7. FinanceNovice
3% and price matching, sounds like a sweet deal indeed.
Looking at the spg.com site, they may have changed the terms. The Amex has a $30 annual fee after one year, and earns one point for each dollar spent, and 10,000 bonus points for a new card holder. Am I looking at the right card?
Thanks for your research!
Dec 29th, 2006 @ 11:31 pm
8. FrugalTrader
Ah, I see, you are looking at the American cards. The MBNA SPG Mastercard is a Canadian card which has no annual fee.
I’m not too familiar with American credit cards, but i’m pretty sure that there are a lot more competitve credit cards there, so i’d do some more research before choosing your primary card.
I’ve read somewhere that there are 3% cash back cards in the states? If we had those here, I would be ALL over it.
FT
Dec 29th, 2006 @ 11:35 pm
14. pennypnchr
I have this card to, and pretty happy with it. Only issue I have is the purchase protection insurance. in short,Had bought an electric kettle and within a month it was damaged by someone accidently putting it on the stove and melted the bottom. Tried to get this covered by the purchase protection plan, they came back to me and said (Can’t remember the exact words)this sort of carelessness is not covered. wat the #$%!! Isn’t this a frikin purchase protection plan, which covers “ACCIDENTS”! ? It’s not like I’m scamming them or something. I’m just pissed about the ins company, and think this portion of the credit card is bull!
Nov 15th, 2007 @ 4:35 pm
15. FrugalTrader
pennypnchr, that’s unfortunate that they didn’t cover you. When you tried to make your claim, did you call MBNA directly? Or their affiliated insurance company? Was the original receipt required?
Nov 15th, 2007 @ 5:17 pm
17. George
The only concern for me about these kind of point cards is the actual calculation of the return.
The real return for me would be the cost of a hotel where I will vacation (mostly Florida) which may include Starwood. The problem with SPG is that the vacation club or Sheraton Vistas in Orlando do not accept SPG. Meanwhile, I can get a Marriott Vacation Club sometimes in the price range of $200 for a one bedroom or even less using Priceline which can land me in the Gaylord Palms for example.
Besides, around $20k per year is about what I can put on credit cards these days.
I had the CT Cashback card when it was 3% and held on to it even when it dipped to 1%. Now I have the AMEX 2% cash back card. I find with the Amex though, at least 10 to 15% of my purchases are at places that do not take AMEX. But the extra 1% over any MasterCard makes it still the better choice. My backup credit card is a PC MasterCard. I guess I really should look into what’s the best credit card for purchases under $2-3k per year.
Mar 5th, 2008 @ 1:16 pm
18. Laura
I looked into the SPG American Express Credit card and it is not available to canadians…….how did you go about getting the card?
Thanks
May 25th, 2008 @ 4:58 pm
19. Hussein
starwood does let you transfer to aeroplan too, I think; just made my first purchase with this card!
cheers!
Jun 22nd, 2008 @ 3:27 pm
20. FrugalTrader
Jun 22nd, 2008 @ 7:06 pm
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