Are these the possible changes to the Lloyds Avios Rewards credit card?

On Monday I ran a piece about why I thought the Lloyds Avios Rewards credit card could not continue in its current form.

I was then handily emailed some draft marketing documentation currently being used as part of some market research.  This shows a Lloyds Avios Rewards Card that would be different to the one we have today:

the American Express card has gone, either because the Amex licence has ended (which is going to happen in the medium term) or Amex has agreed a deal with Avios to be the sole American Express issuer of Avios points in the UK

the earning rate on the MasterCard is improved, from 0.25 Avios to 0.3 Avios per £1

the annual fee remains at £24

The future of the upgrade voucher and the 0% foreign exchange fees was not clear.  I don’t believe that the latter is sustainable.

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If this turned out to be the finished relaunched product, my recommendation would be entirely driven by whether the upgrade voucher and FX benefits remained.

After all, the Tesco Clubcard MasterCard offers the same 0.3 Avios per £1 – albeit impacted by rounding down – and has no annual fee and has the benefit of diversification.  If Avios devalues again, you can use your Clubcard vouchers elsewhere.

You would need to spend £800 abroad on your Lloyds card before the foreign exchange fee saving would overtake the £24 annual fee.  However, you could link the Tesco card to Supercard or Curve to remove or reduce that 3% fee anyway so the FX fee should not be the driving factor.

If this new card does turn out to be the one that is launched, it may be the upgrade voucher (or lack of it) which swings your decision.

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Comments

  1. I have had this card for 4 years now and have not had a chance to use a single upgrade voucher. Perhaps its due to me not typically booking flights 9 months in advance but I have found availability when using the voucher laughably bad. The 0% forex has been very useful (plus the 2x avios for the first 6 months) but personally the upgrade voucher would not be a reason for me to continue getting the card.

    • Not sure I understand your point: availability using the voucher is no different to straight-redemption availability … unless you’re only ever interested/able to redeem in economy.

    • With regards to this card I have had it for two years and likewise never used the upgrade voucher, any idea how to cancel it btw is it as simple as going in to a Lloyds high street bank ?

  2. So, what’s the best card to use with the Supercard? Is Tesco’s or is there a better one for pure cashback?

    Thanks.

  3. So if I bank with Lloyds (and also cancelled the Premier card several months ago) does that mean Mrs W can’t refer me for the Lloyds Avios card? I’ve been waiting ages for the referral emails to arrive at 3 different email addresses…

    • TGLoyalty says:

      Does your avios account and hers accept marketing emails? is the email address used on your lloyds account?

      Even if the email doesn’t arrive make sure you apply using the email address she has used for the referral in your application and avios will award the 4500, you don’t need a special link to apply or anything.

    • Have you given it 5 days? It should arrive to any email Lloyds does not know.

  4. I have a Lloyds Avios voucher sitting in my avios account. I plan to use it on a one way flight for the two of us. Logic tells me to use it for a east bound flight to the UK. So I’ve been considering taking Norwegian or Wow outbound from the UK to USA and returning in Club using the voucher. This allows me to get a cheap one way flight on the outbound sector. Apart from the USA can anyone think of other destinations that would work. I basically need a LCC outbound and a BA flight inbound to use the voucher.

    • Nate1309 says:

      I am not 100% but I think BA charge a massive premium for a 1 way ticket. So the cost of the cash ticket home will be disproportionally more expensive before you then upgrade with your voucher. Never used the Lloyds upgrade before though so maybe someone else can help further.

      • BA do charge a massive premium for a 1 way ticket. Hence looking at LCC carriers for the outbound

        • But the voucher is for an avios reward flight…you aren’t booking a BA cash fare.

      • Agreed but If you can make it work with another airline then it might be useful. E.g. we used Virgin and BA in combo.

    • Is there something in the t’s and c’s about the trip starting in the U.K.. or am I mixing that up with the BAPP companion voucher…?

      • I don’t recall seeing anything about journey originating in the UK

        • I must have been mistaken. Thanks!

          • 1.YOU WILL EARN ONE UPGRADE VOUCHER IF YOU SPEND A MINIMUM OF £7,000 ON YOUR LLOYDS BANK AVIOS REWARDS CREDIT CARD IN A CALENDAR YEAR. THE £7,000 SPEND THRESHOLD EXCLUDES CASH WITHDRAWALS, BALANCE TRANSFERS, REFUNDED PURCHASES, INTEREST, FEES AND OTHER CHARGES. 2.YOU WILL BE NOTIFIED IF YOU HAVE QUALIFIED ON YOUR AVIOS ONLINE ACCOUNT APPROX 4 WEEKS AFTER REACHING THE SPEND THRESHOLD OF £7,000. 3.UPGRADE VOUCHERS ARE LIMITED TO 1 PER CALENDAR YEAR. 4.NEW BOOKINGS MADE USING THE UPGRADE VOUCHER MUST BE BOOKED ONLINE AT AVIOS.COM. IF YOU WISH TO USE THE VOUCHER TO UPGRADE AN ELIGIBLE EXISTING BOOKING OR IF THE FLIGHT YOU NEED INCLUDES A CONNECTION PLEASE CALL 03444933349. 5.ONLY BOOKINGS PAID FOR USING FULL AVIOS ARE ELIGIBLE TO BE UPGRADED USING THE VOUCHER. 6.THE UPGRADE VOUCHER WILL BE VALID FOR 12 MONTHS FROM THE DATE OF ISSUE. YOUR BOOKING MUST BE MADE WITHIN THE 12 MONTH PERIOD, AFTER WHICH TIME THE VOUCHER WILL EXPIRE AND WILL NOT BE REPLACED OR EXTENDED. 7.UPGRADE VOUCHERS CAN BE USED TO UPGRADE EITHER 2 ONE WAY FLIGHTS FOR 2 PEOPLE TRAVELLING AT THE SAME TIME AND TO THE SAME DESTINATION OR 1 RETURN JOURNEY BOOKED ON A BRITISH AIRWAYS MAIN LINE SERVICE, EXCLUDING FLIGHTS FROM LONDON CITY AIRPORT. BA CODESHARE FLIGHTS ARE EXCLUDED. 8.USING AN UPGRADE VOUCHER ENABLES CUSTOMERS TO UPGRADE BY ONE CABIN CLASS AS FOLLOWS: FROM EURO TRAVELLER TO CLUB EUROPE;FROM WORLD TRAVELLER TO WORLD TRAVELLER PLUS; OR FROM WORLD TRAVELLER PLUS TO CLUB WORLD. BOOKINGS CANNOT BE UPGRADED TO A FIRST CLASS CABIN. 9.AIRLINE TAXES, FEES AND CARRIER CHARGES OR REWARD FLIGHT SAVER (RFS) MUST BE PAID ON ALL TICKETS BOOKED. CUSTOMERS WHO UPGRADE THEIR JOURNEY USING THE UPGRADE VOUCHER WILL HAVE TO PAY THE INCREASE IN AIRLINE TAXES, FEES AND CARRIER CHARGES OR INCREASED REWARD FLIGHT SAVER COST APPLICABLE TO THE CABIN THAT THE UPGRADE APPLIES TO. 10.RFS IS AVAILABLE TO AVIOS MEMBERS WHO HAVE COLLECTED 1 AVIOS IN THE PRECEDING 12 MONTHS AND WHO BOOK AN ELIGIBLE REWARD FLIGHT. THE PRICE QUOTED FOR RFS IS CORRECT AT THE TIME OF GOING TO PRINT BUT MAY BE SUBJECT TO CHANGE. 11.THE CARDHOLDER MUST TRAVEL ON ANY BOOKING MADE USING AN UPGRADE VOUCHER. 12.UPGRADE VOUCHERS CANNOT BE USED IN CONJUNCTION WITH ANY OTHER OFFER AND ARE NON-TRANSFERABLE AND NON-REFUNDABLE. 13.BOOKINGS MADE USING AN UPGRADE VOUCHER ARE SUBJECT TO AVIOS TERMS AND CONDITIONS AND ARE STRICTLY SUBJECT TO AVAILABILITY WHICH MAY BE VERY LIMITED OR NOT AVAILABLE ON SOME ROUTES AT CERTAIN TIMES ESPECIALLY DURING PEAK PERIODS. 14.NEITHER LLOYDS BANK NOR AVIOS GROUP (AGL) LTD CAN GUARANTEE YOU WILL BE ABLE TO USE AN UPGRADE VOUCHER ON A PARTICULAR FLIGHT. 15.(AGL) RESERVE THE RIGHT TO WITHDRAW OR AMEND THIS OFFER UPON PROVIDING REASONABLE NOTICE. 16.(AGL) CANNOT ACCEPT RESPONSIBILITY FOR PROBLEMS ARISING FROM COMPUTER MALFUNCTIONS, VIRUSES, BUGS OR OTHER SUCH CAUSES WHICH MAY PREVENT YOU FROM TAKING ADVANTAGE OF THIS OFFER. FULL TERMS AND CONDITIONS ON AVIOS.COM/LLOYDSBANK

  5. Anyone knows why they had rejected my application for this card? I got accepted for other credit cards such as Amex Premium BA, HSBC and Amex gold.
    Even to be added as a secondary card holder, they rejected it. Is it because I don’t bank with them? I don’t believe it’s credit score.
    Thank you.

    • I dont bank with them other than the credit card

    • the real harry1 says:

      provided you are generally credit-worthy (each bank has its own criteria for acceptance) – you shouldn’t worry about rejection by any 1 particular card-issuer, it happens. They might not like one or more of your answers, eg job description/ address/ earnings etc

      move on & don’t feel inhibited about applying again in a year or even sooner, maybe enhance a couple of replies next time

  6. I booked 2 1 way club flights from Mia to Abz last week using lloyds voucher 497 pounds taxes for 2

  7. I’ve just applied for and received the Lloyds Avios cards. The 2.5 avios / £ for six months is very attractive. However, the forex conversion rate is pretty poor.

    A USD transaction yesterday converted at 1.198, and a transaction today converted at 1.199

    I reckon that is 1.6% above market rates (and on a halifax mastercard you are getting very close to market rates). Still just about worth it, but you are effectively paying 0.64 p per Avios. I don’t think I’ll be using this card past the 6 month promo rate.

    • Rob – perhaps an article on visa v MC v Amex wholesale rates would be useful?
      I knew Amex was generally poorer than MC due to an MSE article I read but didn’t realise it was that much different

  8. Nick Davey says:

    On the basis that Theresa May simply has to open her mouth and the Pound plunges I was thinking about making some Euro hotel bookings today. Will the Lloyds Amex Exchange rate be at today’s rate or overnight/ tomorrow’s rate when it may be much worse?

    • the real harry1 says:

      heh heh might benefit some people (us!)

      maybe also depends partly on when your hotel actually charges the card

    • Rate used is the rate on the day processed by Amex. This comes from a blend of interbank rates from prior business day.

    • Better book tonight then. Isn’t there a landmark/Brexit means Brexit speech tomorrow?

      • Yes but it’s been well trailered and the pound has already fallen in anticipation.

        Some firm words from Hammond, support for a trade deal from Trump, and a firm direction of travel from the PM; my guess is that the £ is undervalued and may strengthen after the speech.

        • Grand! All will be well then ;)))

        • Here’s hoping although on Moneybox their currency commentator was saying once we drop under 1.2:1 $:£ it was likely to keep going towards 1.1 :(