Maximise your Avios, air miles and hotel points

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

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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.


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 2022 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:

Barclaycard Avios Plus card

Barclaycard Avios Plus Mastercard

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

Barclaycard Avios card

Barclaycard Avios Mastercard

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

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.

British Airways American Express Premium Plus

25,000 Avios and the UK’s most valuable card perk – the 2-4-1 voucher Read our full review

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 unbeatable travel benefits – for a fee Read our full review

Virgin Atlantic Reward+ Mastercard

15,000 points bonus 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:

American Express Business Platinum

40,000 points sign-up bonus and a £200 Amex Travel credit every year Read our full review

American Express Business Gold

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

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

Capital On Tap Business Rewards Visa

10,500 points bonus – the most generous Avios Visa for a limited company 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.

Barclaycard Select Cashback credit card

1% cashback and no annual fee Read our full review

Comments (81)

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

  • Alex says:

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

  • Nick_C says:

    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.

    • Genghis says:

      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

  • 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

    • Genghis says:

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

    • Will says:

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

      • Nick_C says:

        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.

        • Will says:

          Grand! All will be well then ;)))

        • Alan says:

          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 🙁

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

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