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

Links on Head for Points pay us an affiliate commission. A list of our partners is here.

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 Experian Credit Score.

(EDIT:  In early March 2018, the card was withdrawn for online applications.  You can, for a short period, still apply via telephone with Lloyds Bank or in person at a branch.)

Key link: Lloyds Avios Rewards credit cards application form (no longer works, just an information page)

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.

You cannot use two vouchers on the same booking.  If you and your partner both have a voucher, or if you have two vouchers, you need to make separate bookings for each of you.  You cannot use two vouchers to updated a return flight for two people on the same booking.

You  CAN use the voucher on flights which do not start in the UK.  This allows you to, say, book from Dublin to Heathrow to somewhere to save Air Passenger Duty.  It is also handy if you can book a one-way out using miles from another scheme.

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 Amazon Platinum Mastercard which is free for life and offers 0.5% cashback. The representative APR is 21.9% 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 credit 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.

(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.

Review of the Hampton by Hilton hotel in Bournemouth
Bits: LAST CALL for £15 Amazon / Amex discount, no SPG points from Uber, Madrid BA lounge
Click here to join the 13,000 people on our email list and receive the latest Avios, miles and points news by 6am.

Amazon ad
About Head for Points

We help business and leisure travellers maximise their Avios, frequent flyer miles and hotel loyalty points. Visit every day for three new articles or sign up for our FREE emails via this page or the box to your right.

Comments

  1. Robbie-tackle says:

    I have a son studying in the US and I have numerous payments to make in dollars. This card has saved me a fortune in fx fees and still collect Avios. Must be lucky but so far all points have posted correctly although I’m still trying to work out the best use of the upgrade voucher.

  2. I like this card, but I guess the question with it is how long until the amex goes as the benefits will surely be redcuced when this happens.

  3. I recently had some fraud on my Lloyds Avios card and both cards were cancelled. However, when new card arrived there was only a Mastercard and no Amex, so I wonder if Amex has been dropped?

    • Mikeact says:

      Me too last week, numerous 17p payments during the night on my Amex card. Woke up to a message to call LloydsAmex…helpful voice from fraud department…cancelled card.. new replacement arrived yesterday as we were getting in the car for Heathrow..now down just South of Lisbon…hot…..just had a beachfront lunch courtesy of LloydsAmex.

  4. I believe the NatWest Black MasterCard has zero FX fees and gives Rewards (cash). At least that is what they tell me. Mike

  5. Had it for years. Personally feel this is one I will never cancel for having the fx facility alone. Easy to get Avios via multiple sources and tend to use one-way together and then the other leg ideally with another product. Keeps it fun.

    • Hi W,
      I,m looking to upgrade o/w 2 people with voucher but when I go on the site and ‘usevoucher’ The one way box disappears. do you have to phone? thanks ACB

      • Yes – also have to phone if using it from the regions too. The Avios.com phone agents are excellent though, I’ve never had any issues with them.

      • phatbear says:

        i had this yesterday and thankfully I got it sorted this morning after phoning them, they couldn’t have been more helpful on the phone!

  6. Rob …

    Much appreciated if you and other travel experts here are able to list countries with minimal taxes/surcharges (when using 2 one-way upgrade). In other words, “Best use of Lloyds’ Flight Upgrade Vouchers”, e.g. the much talk about, when travelling out of HKG.

    Thank Q

  7. I still think the example used is underselling the benefit of the voucher. Much better when used off peak, easy to save 60k upwards esp to West Coast USA.

    I’m a big fan of this card, just wish they’d let you pick when you received the voucher rather than sending it immediately upon triggering £7k spend, as it means I never put more than that on it, whereas with Creation I go way over the £10k.

  8. Couple of non spend issues with I’ve found with the Lloyds cards

    1. If you decide to opt for paper statements then there is no option to view or download statements via pdf online. It’s either one or the other so if you are out or abroad and don’t have the paper statement you can’t see current or previous statements for past months. You can see individual transactions online but not a statement for a given period

    2. If you have a supp card, you will only get the one stament for both cards with all the transactions mixed in the statement. There is no way to see at a glance the total spend for each cardholder. The only way to do this, is to log online and export all the transactions to excel then go back and retrieve the last 4 card numbers for each of the 4 cards and add them individually to excel then filter. Last month we had 143 transactions and it took over 40 mins, with the Lloyds website constantly trying to log me out despite being online.

    With the Amex BA and Chage cards this is a non issue as the statements split the bill between each card holder. When I complained to Lloyd’s they didn’t see it as an issue and that my partner should “keep her receipts”

  9. Had this card for a year and still not monthly avios added to my account, which is very annoying. Apart from about 6 months ago when i asked for my avoid to be transferred over…shambles.

  10. 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

  11. 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.

Please click here to read our data protection policy before submitting your comment.