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.

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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.


Want to earn more points from credit cards? – September 2021 update

If you are looking to apply for a new credit or charge card, here are our September 2021 recommendations based on the current sign-up bonus

You can see our full directory of all UK cards which earn airline or hotel points here.

The following offers will end soon:

  • 2,000 Virgin Points on Virgin Atlantic Reward Mastercard (ends 15th October)
  • 30,000 Virgin Points on Virgin Atlantic Reward+ Mastercard (ends 15th October)
  • 10,000 Avios on British Airways American Express (ends 2nd November)
  • 40,000 Avios on British Airways American Express Premium Plus (ends 2nd November)
  • 60,000 points on The Platinum Card from American Express (ends 2nd November)
  • 30,000 points on American Express Preferred Rewards Gold (ends 9th November)

Here are the top current deals:

British Airways BA Amex American Express card

British Airways American Express

10,000 Avios for signing up, no annual fee and an Economy 241 voucher for spending ….. Read our full review

British Airways BA Premium Plus American Express Amex credit card

British Airways American Express Premium Plus

40,000 Avios and the UK’s most valuable credit card perk – the 2-4-1 companion voucher Read our full review

Nectar American Express

American Express Preferred Rewards Gold

Your best beginner’s card – 30,000 points, FREE for a year & two airport lounge passes Read our full review

American Express Platinum card Amex

The Platinum Card from American Express

60,000 points and an unbeatable set of travel benefits – for a fee Read our full review

Virgin Rewards credit card

Virgin Atlantic Reward Mastercard

The UK’s most generous free Visa or Mastercard at 0.75 points / £1 Read our full review

Virgin Rewards Plus credit card

Virgin Atlantic Reward+ Mastercard

30,000 points bonus and the most generous non-Amex for day to day spending 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 Gold

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

Amex Platinum Business American Express

American Express Business Platinum

40,000 points sign-up bonus and a long list of travel benefits Read our full review

British Airways Accelerating Business American Express card

British Airways Accelerating Business American Express

60,000 Avios sign-up bonus – plus annual bonuses of up to 30,000 Avios Read our full review

Capital On Tap Business Rewards Visa

The most generous Avios Visa or Mastercard 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)

  • 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 🙁

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