Topcashback offering £20 on the £24 Lloyds Avios Rewards credit card (no FX fees)

During July I will be updating the ‘Preparing for Summer’ series of articles that I first ran last year.  These cover the best ways to earn Avios from car hire and hotels and how to save money paying bills abroad.

One of the easiest ways to save money whilst travelling is to use a credit card with no foreign exchange fees.  99% of UK credit and debit cards charge a fee of 2.75% to 2.99% when you use them outside the UK.

A small number of credit cards (including Post Office and Halifax Clarity) do not charge foreign exchange fees.  These two cards are also free.  However good your mileage credit card may be, it is unlikely that the points you will get for using it abroad will offset the 2.99% cash saving you will make with either of these cards.

Lloyds Avios Rewards 2

The Lloyds Avios Rewards card also has no foreign exchange fees.  And you earn Avios points when you spend as well!  This gives you the best of both worlds – a 3% saving compared to using any other credit or debit card AND you earn a chunk of miles back.

The only fly in the ointment with the Lloyd Avios Rewards card was the £24 annual fee.  This meant that you would need to spend £2,000+ on the American Express card abroad before the value of the Avios earned outweighed the fee – otherwise you might as well get the Post Office card instead.

Until Sunday or Monday (the site is not totally clear), however, cashback site Topcashback is offering £20 back when you successfully apply for the Lloyds Avios Rewards card.  This means that the card is effectively free for the first year.

Unless you need to put spending onto another card to trigger a spending target (such as £10,000 on the British Airways Premium Plus American Express card to trigger the 2-4-1 voucher) then the Lloyds Avios card is worth a look purely for your Summer spend in foreign currency.

I wrote a fuller comparison of the Lloyds Avios Rewards card and its competitors in this post.

For reference, the representative APR of the Lloyds Avios Rewards card is 22.7% variable including the fee, based on a notional £1200 credit limit.

(To see our complete list of all current credit card bonuses, click here to visit our ‘Credit Cards Update’ page or use the link in the menu bar at the top of the page.)

Disclaimer: Head for Points is a journalistic website. Nothing here should be construed as financial advice, and it is your own responsibility to ensure that any product is right for your circumstances. Recommendations are based primarily on the ability to earn miles and points and do not consider interest rates, service levels or any impact on your credit history.

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Comments

  1. Exactly, I’ve done it couple of times before and all requests got approved within 24 hours.

  2. Yes they are a nightmare, the right hand doesn’t know what the left hand is doing!

  3. The Halifax clarity allows you to withdraw cash at no extra cost. The only thing is it will charge you interest daily. I get around this by moving funds the same day. Brilliant card.

  4. The other fly in the ointment of the Lloyds card is the charge on cash withdrawals:

    “a cash fee of 3% of the amount of each Cash Withdrawal you make in the UK or abroad (minimum £3)”

    As Adam says – the Halifax Clarity card doesn’t charge the 3% on cash withdrawals.

  5. To be fair to Lloyds I’ve had this forex free card for a while now and I haven’t had any trouble. Lloyds also seem to have fixed their trigger happy fraud system, I’ve had no foreign transactions blocked.

  6. Thanks. I have added a note to the post.

  7. What's the Point says:

    Maybe it being highlighted on your website will now spur them into action!

  8. Lipton says:

    Worth bearing in mind with the fx card is the exchange rate it offers you at the time of the transaction. When converting into the dollar , the fx card gives you a conversion rate 5 cents below the actual exchange rate against the dollar. So if you convert £1000 onto an fx card you end up losing $50 in the exchange rate. I don’t know what rate the post office and other cards are like but worth bearing in mind if spending large amounts abroad.

    • In theory cards go through as the Visa or MasterCard wholesale rate which should be – almost exactly (0.01-0.02 per cent difference) – the spot rate. I have never seen any credible evidence that FX free cards do not genuinely offer a 3 per cent saving.

  9. I took this card out earlier in the year. On the plus side it came with a six month offer of double avios, but on the downside it had a lousy credit limit and IIRC there was a note saying they wouldn’t even think about lifting that limit for the first six months.

    Was on holiday in the States with the family and very quickly hit the credit limit…

    • Jason K says:

      I received an average credit limit, but with faster payments you can put money on the card instantly, and you can also ‘overload it’ then spend to bring your credit balance down. I put £8k through in one month by doing this.

      The interest free period is useful too.

      But I agree with the bad customer service, it’s terrible. They also initially sent me cards without contactless feature. Took ages to sort that out.

    • I applied on Sunday, and this morning had an email saying I’ve not been approved. God knows why as my credit score is excellent. Oh well I’ve had a terrible experience with Lloyds years ago when I briefly had a current account with them so I think I dodged a bullet there.

  10. Amandeep says:

    Fully agree with you. Exactly the same situation; with my Lloyds TSB cards expiring, requested to upgrade and I was told they would send me paperwork to sign and go into a branch to prove my identity again (having held avios cards with them since 2007!). Four weeks on and still nothing. Absolutely useless company

    • You know that Lloyds refuses to work with HFP because of all the complaints you guys make on here?!

      (Seriously.)

      (But I can live with it.)

      • I will try to avoid dealing with Lloyds after the scandal that was points – gate. I did get £65 pounds compensation out of it. But have said that I will never ever ever take out a LLoyds card out again. Nightmare of a company.

  11. Just to say, against better judgement as had hassle with Lloyd’s before, got the £24 cards and they have been brilliant, no sign up but ended up with over 10500 bonus points (although they gave me a silly low credit limit had to keep paying it off early, which has now got much better). Opened it though cash back so got my £24 or whatever the offer was. Saved a lot on foreign travel, not sure when I’m using the upgrade voucher but my only gripe is the website isn’t run by Amex. Cards now having a rest till we next go abroad, woken up the other Amex cards now, so recommend this for foreign travel etc