[ANALYSIS] MBNA Rewards World Elite MasterCard

Several Pointshogger readers have asked about the MBNA Rewards World Elite MasterCard, which allows you to earn MBNA reward points. So here is a review, below are the highlights of the credit card:

• $89 annual fee (waived for the first year)
• Earn 10,000 points sign up bonus on the first purchase
• Earn 2 points for every $1 in eligible purchases
• 1 point = 1 cent in value during redemption

This is a very basic and straight up credit card. The only real analysis to be made is the annual fee versus the points you earn. The first year is a no-brainer, you earn 10,000 points for free, which essentially equates to $100 in cash value. Thereafter, you are paying $89 per year to earn a 2% return.

Compared to the other top credit cards out there, this annual fee is much more reasonable, so that is the most encouraging sign. The two credit card cards that I would compare this card with are:

Capital One Aspire Travel (discussed further here)

• $120 annual fee
• Earn points that can be redeem for a variety of rewards
• Earn 35,000 sign up bonus points after your first purchase
• Earn 10,000 anniversary bonus points
• Earn 2 points per $1 spend on anything
• Tier-ing system when redeeming your points

Capital One Aspire Cash MasterCard (discussed further here)

• No annual fee
• Earn 1% cash back on all purchases
• Earn a bonus 25% extra cash on your anniversary year of having the card
• You can cash out any time on any amount

When comparing to the Capital One Aspire Travel, I prefer the 10,000 anniversary bonus, essentially reducing my annual fee from $120 to $20. You are earning the same 2 points per $1 spent on anything. The downside is the tier-ing system when redeeming your points. But I still give the edge to the Capital One Aspire Travel because I do not like paying so much out of my pocket.

If the tier-ing system is a deal breaker for you, then when comparing to the Capital One Aspire Cash MasterCard, the key thing is the no annual fee and a 1.25% return. To justify the $89, you need to spend

$12,000 per year on the MBNA Rewards World Elite MasterCard = 24,000 points = $240 cash back
$240 – $89 (annual fee) = $151

$12,000 per year on the Capital One Aspire Cash MasterCard = $120
$120 + $30 (anniversary bonus of 25%, $120 x 25% = $30) = $150

Therefore, you will need to spend $12,000 per year on your credit card to start coming out ahead of the Capital One Aspire Cash MasterCard. I would do your personal calculations before deciding which credit card to get.