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.
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.
Want to earn more points from credit cards? – December 2023 update
If you are looking to apply for a new credit card, here are our top recommendations based on the current 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:
You can see our full directory of all UK cards which earn airline or hotel points here. Here are the best of the other deals currently available.
SPECIAL OFFER: Until 9th January 2024, you will receive 30,000 Membership Rewards points (convertible to 30,000 Avios) with American Express Preferred Rewards Gold. You receive 25,000 points if you spend £3,000 in three months and a further 5,000 points if you hold the card for 15 months. You can apply here.
SPECIAL OFFER: Until 9th January 2024, you will receive a huge 100,000 Membership Rewards points (convertible to 100,000 Avios) with The Platinum Card. You receive 75,000 points if you spend £10,000 in six months and a further 25,000 points if you hold the card for 15 months. You can apply here.
British Airways American Express Premium Plus
25,000 Avios and the famous annual 2-4-1 voucher Read our full review
American Express Preferred Rewards Gold
Your best beginner’s card – 30,000 points (TO 9th JANUARY), FREE for a year & four airport ….. Read our full review
The Platinum Card from American Express
Crazy 100,000 points (TO 9th JANUARY) and a huge range of valuable benefits – for a fee Read our full review
Virgin Atlantic Reward+ Mastercard
15,000 bonus points and 1.5 points for every £1 you spend Read our full review
Earning miles and points from small business cards
If you are a sole trader or run a small company, you may also want to check out these offers:
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
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
Capital On Tap Business Rewards Visa
Get a 10,000 points bonus plus an extra 500 points for our readers Read our full review
For a non-American Express option, we also recommend the Barclaycard Select Cashback card for sole traders and small businesses. It is FREE and you receive 1% cashback on your spending.