Credit & Charge Card Reviews (12): Lloyds Avios Rewards American Express & Mastercard

This is my review of the Lloyds Avios Rewards credit cards.

It is part of my series of articles looking at the major UK loyalty credit cards and discussing whether or not they are worth applying for. These articles will be linked to the relevant sections of the ‘Credit Cards Update‘ page. My other UK airline and hotel credit card reviews can be found here.

If you want to check your credit record before applying for a new card, click here to get your free Equifax credit report and score. Your first 30 days are free then it’s £14.95 per month. You can cancel at anytime.

Please note that this card is not suitable for you if you do not pay off your balance every month, due to the high interest rate.  You are better off with a low interest rate card such as – click for details – the AA Low Rate Credit Card which has an APR of 6.5%.

(EDIT:  This article was updated on 27th December 2017 and is correct as of that date.)

Key link: Lloyds Avios Rewards credit cards application form

Key facts: £24 annual fee

The representative APR is 23.7% variable including the £24 fee, based on a notional £1,200 credit limit.

About the card

The Lloyds Avios Rewards credit cards are issued by Lloyds Bank. There used to be a second Premier version of this card, with a £140 annual fee, but this has now been scrapped for new applications.

The cards come as a twin-pack of an American Express and a Mastercard. You will receive both cards when you apply, although you will only receive one monthly statement with your combined spending.

The Avios Rewards cards are the only travel loyalty cards issued by Lloyds, so it is unlikely to conflict with any existing cards you hold. However, HFP reader experience is that it is not easy to predict whether or not you will be accepted whatever your credit standing may be.

Lloyds Avios Rewards credit card review

What is the sign-up bonus?

There is no sign-up bonus.

All cardholders receive double Avios points for the first six months on your spending on the American Express card, up to £2,500 per month. If you were spending £1,000 per month on the Amex, that would effectively mean a bonus of 7,500 Avios.

Any other benefits?

There are two very interesting benefits on the Lloyds Avios Rewards £24 cards which make them stand out from all other travel credit cards.

No foreign transaction fees. This is a revolutionary move. 99% of UK credit cards – and ALL other travel loyalty cards – charge a 3% foreign exchange fee when you use your card abroad. The Lloyds Avios Rewards card does not. Even more impressively, you also earn Avios points on your foreign spending!

There are a handful of credit cards which offer no foreign exchange fees and have no annual fee – eg the Post Office Platinum Money card. None offer rewards points, though.

Flight upgrade voucher when you spend £7,000 across the two cards. The voucher allows ONE PERSON to book a return Avios redemption ticket whilst only paying the Avios required for the class below the one you booked.

Alternatively, you can upgrade two one-way flights. This only works if you upgrade two tickets on the same booking at the same time, with the cardholder as one of the travellers. You cannot use the voucher to upgrade two totally separate one-way flights on different days.

A Club World return ticket to New York on a peak date, for example, would only cost 80,000 Avios return (the World Traveller Plus price) instead of 120,000 Avios when using the voucher.

The voucher is valid for 12 months from the date of issue (you only need to book within this period, not travel) and you can only earn one voucher per year.

You only need availability in the higher class, not the lower one. Effectively, the voucher works by booking you a redemption seat for the discounted price of a seat in a lower class.

You cannot use the voucher to upgrade from Club World to First, on BA codeshares or on BA flights from City Airport except for New York.

For the solo traveller, the upgrade voucher could have real value. It is less use if you always travel with a partner, although you could book a separate ticket at full Avios price for the other person. I wrote about the upgrade voucher in more detail here.

Note that if you cancel a flight which has been upgraded using the voucher, the voucher is lost. You do NOT get it back. Use with care.

What is the annual fee?

The Lloyds Avios Rewards cards have an annual fee of £24.

What do I earn per £1 spent on the card?

You receive 1.25 Avios per £1 spent on the American Express card. This is a very good rate of return given the modest annual fee.

The MasterCard only earn 0.25 Avios per £1. This rate is poorer that the FREE Tesco Mastercard at 0.3 Avios per £1. Even if you meet the very strict qualifying criteria, the HSBC Premier Mastercard only earns 0.5 Avios per £1. You need to pay a £195 fee for the World Elite version of the HSBC card which gives 1 Avios per £1.

What is an Avios point worth?

How long is a piece of string!

This article is my best attempt to calculate the value of an Avios.

How does this compare to a cashback credit card?

My default comparison card is the ASDA Cashback Credit Card which is free for life and offers 0.5% cashback. The representative APR is 19.9% variable.

On this basis, the American Express card supplied with the Lloyds Avios Rewards card performs well, earning 1.25 Avios per £1. The Mastercard at 0.25 Avios per £1 does not compare well to a cashback card – the only good reason for using it is that your spend will count towards triggering the upgrade well.

How does this compare to the free British Airways American Express card?

The Lloyds Avios Rewards card compares well for spending (1.25 Avios per £1 on the Amex compared with 1 Avios per £1 on the free British Airways American Express card). The BA Amex is better for fees (the BA card is free compared to £24 for the Lloyds card) and DOES carry a sign-up bonus.

The real differential, though, is the voucher on offer:

if you travel with a partner, you will value the 2-4-1 voucher for Avios redemptions that comes with the British Airways Amex

if you travel alone, you might find the upgrade voucher offered with the Lloyds card more attractive

Of course, if you spend a large amount on credit cards each year and could trigger both bonuses, you may want to have the Lloyds Avios Rewards card alongside one of the BA cards.

How else can you earn Avios points from a credit or charge card?

The obvious options are the British Airways American Express, the British Airways Premium Plus American Express card and the free Tesco Clubcard Mastercard.

Don’t forget these less-obvious options though:

The American Express Preferred Rewards Gold charge card offers 20,000 Membership Rewards points for signing up and is free for the first year. These convert to 20,000 Avios points.

The American Express Platinum charge card offers 30,000 Membership Rewards points for signing up. These convert to 30,000 Avios points. It has a £450 fee, refunded pro-rata if you cancel.

The Starwood Preferred Guest American Express credit card offers 10,000 Starwood Preferred Guest points for signing up. These convert to 10,000 Avios points. It has a £75 fee, refunded pro-rata if you cancel.

Conclusion

You won’t be getting this card for the attractive sign-up bonus, because there isn’t one. Based on your predicted level of spending, you can decide for yourself if the ‘double Avios on the Amex card for six months’ deal is attractive or not.

The on-going earning rate on the Amex card is attractive compared to competing products, especially given the modest £24 fee. 0.25 Avios per £1 on the MasterCard is poor – the free Tesco Clubcard Mastercard is more generous at 0.3 Avios per £1.

I feel that Lloyds deserves special credit for the ‘no FX fees’ feature on this card. Whilst there are cards with no annual fee which also have 0% FX charges – such as the Post Office or Halifax Clarity cards – if you spend more than £2000 abroad on the each year, the Avios earned via the Lloyds Amex will outweigh the £24 fee.

The application form for the Lloyds Avios Rewards American Express and Mastercard can be found here.

(Want to earn more miles and points from credit cards?  Click here to visit our dedicated airline and hotel travel credit cards page or use the ‘Credit Cards Update’ link in the menu bar at the top of the page.)

Disclaimer: Head for Points is a journalistic website. Nothing here should be construed as financial advice, and it is your own responsibility to ensure that any product is right for your circumstances. Recommendations are based primarily on the ability to earn miles and points and do not consider interest rates, service levels or any impact on your credit history. By recommending credit cards on this site, I am – technically – acting as a credit broker. Robert Burgess, trading as Head for Points, is regulated and authorised by the Financial Conduct Authority to act as a credit broker.

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Comments

  1. Eric Brierley says:

    I have the Lloyds Duo cards, I’ve had them for about 10 years, I don’t pay a fee on mine never had. Are these for new customers ?, and I’ve never had a upgrade voucher either !!!

    • This is Lloyds Avios which replaced the old Duo cards for new customers.

    • Eli Gold says:

      you would have to upgrade to the Avios rewards duo cards and go through the whole application process. being that you hold the Lloyds Amex Duo you’d not be eligible to the referral bonus for that card

  2. Whilst I have only recently got this card so haven’t yet qualified for my upgrade voucher, I understand from a friend who also has the card that you can use the upgrade voucher to upgrade two people on the same flight on a one ways basis. He used his last voucher to upgrade himself and his wife back from Naples during the summer holidays.

  3. Genghis has mentioned this before, Rob has yet to address this flaw.

  4. the_real_a says:

    Depends if you can shop at asda. You can create a voucher for any amount on your phone whilst instore. For example i stocked up on Christams booze yesturday. Worked out the total and created a voucher whilst in the queue. You cannot use the voucher on gift cards, fuel or phone top ups.

    • I would not trust my Asda to be able to scan off my phone as they always look confused on the vouchers and say its the first time they have seen one even if I have been to them before with a voucher :`

  5. the_real_a says:

    You can change the date of the return leg for the usual fee if you want to “risk” something becoming available nearer the time. Same zone destination changes are also allowed for the usual fee.

  6. Sadly I’ve had zero problems so no compo 🙁 Hilton Barclaycard was great for that though!

  7. the_real_a says:

    Just yesterday i used the voucher for a HKG – LBA / LON – HKG in Business

    Total cost was 78,000 avios with £260 tax and fees

    A saving of 72,000 Avios (150,000 – 78,000). Outstanding value.

  8. There certainly used to be Avios referral opportunity, not sure if still about. Tended not to pay out if the email address known to Lloyds previously although Twitter team could sometimes sort.

  9. I suggest that you take the plunge. The biggest risk is that your account works perfectly (like mine)so you get no compensation!

  10. To reduce taxes using the voucher, could you start from Inverness where I believe there is no APD?

    Using 4000 Avios to get up to Inverness on a separate booking that morning, and do a back to back if possible in time. The only trouble is checked luggage, but you should be able to check in luggage at Heathrow after having flown back from Inverness, assuming your layover is long enough by going landside. I don’t think you can check in luggage at Heathrow if your ticket doesn’t start from Heathrow so it would need to be done after having flown INV-LHR

    If so – and this will only work for long haul flights in the late afternoon / evening eg Hong Kong, Singapore you could save a load of tax by flying up to Inverness and back. The cost of a few hours of left luggage storage would be peanuts compared to the taxes saved.

    • And if living local to LHR you could just go home and get your luggage, I think the layover rule is 24 hrs so should work for long haul flights that go in the morning / lunchtime / early afternoon as the Inverness flight lands about 1:30. This option is perhaps more Ideal for those with more time available

  11. phatbear says:

    im just trying to use my avios 2 for 1 upgrade voucher which ive got from lloyds.

    I want two one way flights, so two singles same date/destination etc, from LAX to LHR however when i go onto the avios site it states that

    “Your upgrade voucher can be used to:

    Upgrade 1 person on both legs of a return flight
    Upgrade 2 people on one leg of a return flight; either the outbound or the inbound leg”

    thus implying that we need to have a return ticket to lax of which we can upgrade one leg, which isn’t what we want.

    however LLoyds t&c’s state:

    “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. British Airways codeshare flights are excluded. Flights from London City airport are excluded”

    so no mention of a return flight, just 2 people travelling at the same time to the same destination, which is what we want.

    So does anyone have any experience of using their lloyds upgrade voucher for two people on a single flight?

    ive tried phoning avios but despite hanging on for 20 mins i finally googled their opening times and it appears they are already closed!

    • No personal experience but given how decent they’ve been when I’ve spoken to them to make bookings before I can’t foresee it being an issue.

      • phatbear says:

        I know what you mean but its actually their terms which are more restrictive than the lloyds t&c’s.

        • Hopefully you’ll get through to them tomorrow to check, but I’d say the Lloyds ones take precedence anyway as that’s the only ones you’re given when committing the spend on the card.

        • Have you tried ringing them?

        • Well the OP said “ive tried phoning avios but despite hanging on for 20 mins i finally googled their opening times and it appears they are already closed!” so sounds like a job for tomorrow 😉

    • If you believe Avios has misleading information as a Credit Broker than do email a complaint to them. They will, at least in my experience, compensate you one way or another. I complained about one misleading word on their T&C in return I was issued an additional Upgrade Voucher, that’s really not too bad, I currently have two valid vouchers dated one month apart from each other in my account. Give it a go and good luck!

      • phatbear says:

        Well, thankfully, after being on the phone at bang on 10am this morning I got it sorted, i personally don’t understand why you cant do it online but hey ho.

        Thanks for peeps input regarding this issue.

        • Glad all sorted. Given they can’t even handle journeys with connections online they clearly just haven’t bothered investing much in the website!

    • Eli Gold says:

      Glad you’ve got it all sorted but when I booked a few singles with upgrades, on the phone, I ended up getting BA tier points for those flights which is pretty cool. check your account to see if you got the same

      • Did you receive them once you’d actually flown? I had them appear in MMB but then for one flight they never posted, for the other they posted and were then taken back (which triggered a GUV2 earlier than planned, requiring much chasing to get extended!)

  12. Yes, you must use the voucher in store but I don’t find it that much hassle

  13. Eli Gold says:

    risk what?

    I’ve had the card for years with no issues at all. They’re extremely helpful on the phone. Go for it!!!

  14. I have the card and am sure I have met the spend level but haven’t received the upgrade voucher. I’ve tried to call Avios and Lloyds but neither can seem to tell me why this is the case. Is there a way for me to check my spend to get the voucher and who should I go to to claim this? Thanks.

    • Definitely needs to be sorted by Lloyds – ignore any attempts by them to transfer you to Avios.

      When estimating the spend, have you calculated it based on the statement amount for each of the months you’ve held the card (minus the £24 fee) – normally that should pretty much do the trick.

      If you’ve only just hit the target I’d give it a few weeks but if time has already passed then you need to call Lloyds again and be clear you want them to tell you how close you are to triggering the voucher. If no progress then file a formal complaint.

      When it’s issued you’ll receive an email and a letter in the post and it’ll show up in your Avios.com account.

  15. I have the Lloyds Duo Avios Amex and Mastercard branded card pair. Are these different to the ones being discussed in this thread? If so, could I ditch mine and apply for the updated ones? Upgrade vouchers don’t seem to come with my version.

  16. When you apply, can you give your BA number or does it have to be Avios?
    when logged in to the lloyds account can’t see any mention of a membership number.
    Thanks

    • Was wondering that myself, did a dummy application but didn’t see sign of anywhere to enter it. Maybe you have to phone them?

      • It has to be Avios.
        They try to match you and open a new account if they fail (often) so check the number on the email that you get.

    • They’ve got a stupid system that tries (and often fails) to match you to your Avios.com account. If it fails they make a new one that you then need to ask be merged. Instant transfers between Avios & BA so not an issue in that regard. When booking using voucher remember it comes from your Avios.com account, so if necessary you’ll need to transfer in sufficient Avios.

  17. I actually called Lloys to ask them – the person I spoke to, was unable to find out if it was Avios or BA, or how my number would be added. He then transfered me to Avios.
    My first impresssions on the Lloyds reward card are pretty negative. I can certainly understand why there are people in the thread above waiting ages from points. Tempted to not spend any more (£) and give this one a miss.

  18. Hi,

    “The MasterCard at 0.25 Avios per £1”

    At the moment, I get 6 months double points on purchase. Does Lloyds use the “round down” method like the Tesco Credit Card when calculating the points at the end of a month?

    Thanks