Maximise your Avios, air miles and hotel points

Introducing the Lloyds Choice Rewards credit card …. the 3rd of their new Avios-earning cards

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Yesterday I spent, frankly, more time than is sensible poring over the details of the new Lloyds Avios Rewards credit cards. Part 1, Part 2 and Part 3 of my analysis can be found here.  The website for the free card is here, the paid card is here.

However, Lloyds quietly slipped out a 3rd Avios-earning card on Monday – the Lloyds Choice Rewards credit card.  Here is my review.

This is Lloyds attempting to take on American Express Membership Rewards, Tesco Clubcard Mastercard or the Starwood Preferred Guest Amex cardInstead of earning Avios points for your spending, you will earn Choice Points.  You could convert your Choice Points to Avios, but you also have other options.

Here is the key point of interest for the card – you earn 0.5 Avios per £1 on the Mastercard.  That is double what you earn on the Lloyds Avios Rewards card and 2/3rd more than you earn if you paid £140 for the Lloyds Premier Avios Rewards card.

This is part of the reason that I was lukewarm on the £140 Lloyds Premier Avios Rewards card yesterday.  If the Mastercard had offered 0.5 Avios per £1 then it would have been a more attractive package.

Here is a full summary of the Lloyds Choice Rewards credit card:

You receive an American Express card and a Mastercard

There is a £24 annual fee

0% interest on purchases for the first 13 months

You earn Choice Points, which convert to 1 Avios per £1 spent on the Amex and 0.5 Avios per £1 spent on the Mastercard

You receive double points on the Amex for the first six months, capped at £2,500 of spend per month

Alternatively, you can redeem your Choice Points for “cashback, shopping vouchers and magazines subscriptions”.  You can see details of these here.  If you opt for cashback, you receive 1% of Amex spend and 0.5% of Mastercard spend.  If you opt for shopping vouchers (Argos, Currys, Homebase, House of Fraser) you receive 1.5% of your Amex spend and 0.75% of your Mastercard spend.

Do I recommend this card?

Not really, if you are a keen Avios collector.  It may have more interest to ‘casual’ Avios collectors who want a back-up redemption option.

The Avios earnings rate on these cards is good, but you can do better.  The Tesco Mastercard offers 0.6 Avios per £1 spent, compared to 0.5 Avios here, with the possibility of a conversion bonus on top.  Tesco also has a wide range of other Clubcard partners if you decide not to redeem for Avios, and has no fee.

The Avios-earning rate on the American Express card is also not market-leading, at 1 Avios per £1 spent.  You would be better off with the free British Airways American Express card which does not carry a fee and also offers 1 Avios per £1.  Or, of course, the Lloyds Avios Rewards card which offers 1.25 Avios per £1 for the same £24 fee.

In any event, the shopping vouchers option on this card is pretty good, and makes your Avios look expensive.   Spend £1,000 on the Amex, for example, and you could get £15 of House of Fraser vouchers or 1,000 Avios.  That makes the Avios VERY expensive at 1.5p each.  Even taking straight cashback, you would be comparing £10 vs 1,000 Avios, which is a marginal call.

Fundamentally, I am not sure why Lloyds added Avios to this card as an option.  I would strongly recommend, if you get this card, that you take your rewards as a shopping voucher – assuming there are things at Argos, House of Fraser or Currys that you would buy.

I’m interested in your comments on this one, since it seems a strange mix of benefits and fee, whilst inadvertently also making the earnings rate on the £140 Lloyds Premier Avios Rewards card look bad.


How to earn Avios from UK credit cards (September 2023)

As a reminder, there are various ways of earning Avios points from UK credit cards.  Many cards also have generous sign-up bonuses!

In February 2022, Barclaycard launched two exciting new Barclaycard Avios Mastercard cards with a bonus of up to 25,000 Avios. You can apply here.

You qualify for the bonus on these cards even if you have a British Airways American Express card:

Barclaycard Avios Plus card

Barclaycard Avios Plus Mastercard

Get 25,000 Avios for signing up and an upgrade voucher at £10,000 Read our full review

Barclaycard Avios card

Barclaycard Avios Mastercard

5,000 Avios for signing up and an upgrade voucher at £20,000 Read our full review

There are two official British Airways American Express cards with attractive sign-up bonuses:

British Airways American Express Premium Plus

25,000 Avios and the famous annual 2-4-1 voucher Read our full review

British Airways American Express

5,000 Avios for signing up and an Economy 2-4-1 voucher for spending £12,000 Read our full review

You can also get generous sign-up bonuses by applying for American Express cards which earn Membership Rewards points.

American Express Preferred Rewards Gold

Your best beginner’s card – 20,000 points, FREE for a year & four airport lounge passes Read our full review

The Platinum Card from American Express

30,000 points and a huge range of valuable benefits – for a fee Read our full review

Run your own business?

We recommend Capital On Tap for limited companies. You earn 1 Avios per £1 which is impressive for a Visa card, along with a sign-up bonus worth 10,500 Avios.

Capital On Tap Business Rewards Visa

Get a 10,000 points bonus plus an extra 500 points for our readers Read our full review

You should also consider the British Airways Accelerating Business credit card. This is open to sole traders as well as limited companies and has a 30,000 Avios sign-up bonus.

EDIT: Applications for this card are temporarily suspended due to IT issues with the British Airways On Business SME loyalty scheme.

British Airways Accelerating Business American Express

30,000 Avios sign-up bonus – plus annual bonuses of up to 30,000 Avios Read our full review

There are also generous bonuses on the two American Express Business cards, with the points converting at 1:1 into Avios. These cards are open to sole traders as well as limited companies.

American Express Business Platinum

40,000 points bonus and an annual £200 Amex Travel credit Read our full review

American Express Business Gold

20,000 points sign-up bonus and free for a year Read our full review

Click here to read our detailed summary of all UK credit cards which earn Avios. This includes both personal and small business cards.

Comments (12)

This article is closed to new comments. Feel free to ask your question in the HfP forums.

  • James67 says:

    Hopefully the biggest benefit of these 3 new Lloyds cards will be a series of new promotions from mbna and amex.

  • Frenske says:

    The Tesco mastercard gives points for EACH transaction. Meaning when you pay £3.99 you get nada, so at the end the earning rate will be lower than 0.6 Avios per £1. Probably a earning rate of 0.5 Avios per £1 is more realistic.
    It is unclear to me if the Lloyds credit card pays the choice points per transaction or on the whole balance. Probably the latter one.

    • Rob says:

      It is whole balance.

      You are right about the Tesco MasterCard, of course. I was going to include this, but there comes a point where you have to stop in order to keep things understandable! The fact that the Tesco card is a) free and b) may also have a transfer bonus means that it remains a better option whether or not the actual rate you end up with on the Tesco card is 0.6 or 0.5.

  • Rob says:

    Cheers Andrew. Not sure why I couldn’t find that yesterday. I will edit the text.

  • craig says:

    Am fairly underwhelmed to be honest. Think Lloyds would’ve been wiser sticking to 2 card offerings rather than 3, and offering this choice option plus the improved Mastercard earnings rate on the ew Lloyds Avios Rewards credit cards.
    In all of the Lloyds 2-card offerings I’d always assumed the Mastercard would never be used, and the 0.5 Avios/£1 offering would be the same in my case as Tesco Mastercard beats it.

  • Rob says:

    That’s a fair point. If you can wipe out the annual fee for Year 1, then 1.5% back in House of Fraser spend would be attractive (3% for the first 6 months, up to £2500 per month). Just need to time it around a period of heavy Amex spending ….

    • Stephen Chinnadorai says:

      I should have waited to purchase that new iPad! I guess Christmas will involve some fairly heavy spending.

  • Al says:

    It’s worth remembering that, with a little hunting, you’ll find sites willing to sell you gifts cards with roughly 5% off if you’re willing to pay with a debit card. This will often be much better value than trying to collect credit card points if all you’re going to do is redeem them for high street vouchers.

  • Haus says:

    Is it me or am i confused more so…Quick question, what is best card (free or paid) where I spend on both AMEX and VISA/MC as currently have “old ” LLOYDS TSB Premier Dual card with the 241 voucher which I always attain through spend. Basically I put ALL spend c.£2500 per month …any suggestions?

  • Brian says:


    One other thing to add to your great review.

    I think one of the most exciting things about this launch is that this is the first AMEX offering fee free foreign currency transactions.

    This is important because as readers may or may not know, British AMEX cards do not have any address validation built into them.

    Therefore you can order items to an American address, using this address as the billing address and the majority of the time this will work (its a bit hit and miss). It will never authorise on mastercard or visa.

    Very useful if you have american relatives / friends who cross the atlantic.

    I am not condoning this behaviour!

    Cheers B

This article is closed to new comments. Feel free to ask your question in the HfP forums.

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