Applicable to UK residents only.
In this series of posts, I’ll be reviewing airline/air-mile credit cards, and assessing how good they are at earning miles.
The Lloyds Avios Rewards Card comes in a two-pack, with a MasterCard and an American Express Card.
Key facts:
Annual fee: £24 per year
Sign-up bonus: Nothing, however, if you’re referred by an existing cardholder, you’ll get 4,500 Avios for signing up. Email me at thatairlineguybusiness (at) gmail.com if you would like a referral link.
Earning rates
The American Express card earns an impressive 1.25 Avios per pound spent on virtually any purchases, which is very generous for a card with such a low annual fee.
The MasterCard earns a pathetic 0.25 Avios per pound spent, however. I would recommend locking up the MasterCard and just using the Amex. There are far better MasterCards out there in terms of quasi-cashback (giftcards), like the John Lewis or House of Fraser cards, however these will not earn Avios obviously.
What’s more, for the first six months, you will earn double Avios on all spending (i.e. 2.5 Avios/£ on Amex and 0.5 Avios/£ on MasterCard) up to a maximum of £2,500 per month. That’s a HUGE earning rate on the Amex. I’d recommend waiting until you’re about to do some big spending to sign up for this card to maximise your earning rate.
Other benefits:
The Lloyds Avios Rewards Card has two other very interesting and potentially valuable perks:
- An upgrade voucher: If you spend £7,000 in 12 months, you will receive an Avios upgrade voucher, entitling you to book a reward ticket for the price (in miles) of the cabin below the one you’re traveling. i.e. if you wanted to book a Business Class flight, you would only pay the miles of a Premium Economy flight. This could be very profitable if used right, and would immediately justify the £24 fee. N.B. You can’t use this voucher to upgrade from Business to First.
- 0% foreign transaction fees: Exactly what it says on the tin.
Fly Club World (Business Class) for the price of
World Traveler Plus (Premium economy)
Final thoughts
Points that can transfer to a wide variety of airlines (e.g. American Express Membership Rewards Points) are inherently more valuable than miles that tie you into one airline (e.g. Avios), because an airline can undergo a mile devaluation at anytime, as we’ve seen in the UK and across the pond in America. That said, if you’re happy sticking with British Airways, then that’s fine. This card will tie you in with British Airways (and its partners).
The Lloyds Avios rewards Card offers some really interesting perks and incentives, making it a great card to use for everyday spending. The double Avios for the first six months, low annual fee, and secret sign-up bonus are all icing on the cake really. While some cards have more generous sign-up bonuses, I can’t think of any that have better day-to-day spending rates for a similar fee. This card should be your old reliable in your wallet.
