Maximise your Avios, air miles and hotel points launches a credit card in the United States – here’s how it works

Links on Head for Points may support the site by paying a commission.  See here for all partner links. has recently launched a credit card in the United States. I should say upfront that I don’t have any news about a similar card being launched in the UK in the short term.

However, I thought it was worth covering because it uses an interesting rewards model.

How does the credit card work? Rewards is a very good loyalty which, for many people, works better than traditional hotel loyalty schemes.

Put simply, for every 10 nights you stay, you receive a free night worth the average ex-VAT price of those 10 nights.

This idea has a lot going for it. features 50x more hotels than even the largest global chain. You can earn rewards without ever having to compromise on location, price or hotel quality to stay at a particular brand.

Redeeming is also easier. Your free night credit can be topped up to pay for a more expensive room, allowing you to book suites or executive rooms if you with.

The only downside is that bookings do not earn points or elite night credit with the chain where you stay. Your elite benefits are also blocked, so a Marriott Platinum Elite won’t get free breakfast or upgrades on bookings at Marriott properties.

It’s a trade off, but one that many are happy to make. You can learn more about Rewards here.

How does the credit card work?

How does the Rewards credit card reward you?

Since Rewards is not points based, the credit card cannot give you points for every $1 you spend.

Instead, it has gone down a different route.

You receive 1 ‘stamp’ in Rewards for every $500 you spend on their credit card.

Each ‘stamp’ is the equivalent of a $110 hotel room.

Since you each ‘stamp’ is worth 10% of the value of the room, you are effectively earning $11 in Rewards credit for every $500 you spend on their credit card. This is a return of 2.2%.

What other card benefits do you get?

The card comes with other goodies on top:

a free night voucher worth $125 when you spend $1,000 within three months Rewards Silver membership for your first 12 months of card membership (provides extra benefits at some hotels)

Would a similar card work in the UK?

There is, of course, no way that you would ever see a credit card which was so generous in the UK.

Interchange fees are capped at 0.3% here. In the US, retailers can expect to pay around 2% for accepting a Visa or Mastercard, with more for American Express, and that is before terminal fees etc.

That said ….. a card which offered you a free night ‘stamp’ worth £50 for every £1,000 you spent would work. could probably break even on this basis, assuming they fully shared in the P&L of the card with the issuer. This is the model that Virgin Atlantic is using with Virgin Money. would get extra upside from upselling redemption rooms (I doubt many people would be redeeming their 10 x £50 stamps for a £50 room) and driving additional cash bookings as cardholders tried to push up the average value of their free night.

Let’s see if anything emerges in 2021.

best travel rewards credit cards

Want to earn more points from credit cards? – June 2024 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

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

Barclaycard Avios card

Barclaycard Avios Mastercard

5,000 Avios for signing up and an upgrade voucher at £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.

Marriott Bonvoy American Express

HUGE 60,000 POINTS BONUS UNTIL 2nd JULY and 15 elite night credits each year Read our full review

American Express Preferred Rewards Gold

Your best beginner’s card – 30,000 points (TO 16TH JULY), FREE for a year & four airport ….. Read our full review

British Airways American Express Premium Plus

25,000 Avios and the famous annual 2-4-1 voucher Read our full review

The Platinum Card from American Express

40,000 bonus points and a huge range of valuable benefits – for a fee Read our full review

Virgin Atlantic Reward+ Mastercard

18,000 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:

American Express Business Platinum

40,000 points sign-up 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

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.

Barclaycard Select Cashback Business Credit Card

1% cashback uncapped* on all your business spending (T&C apply) Read our full review

Comments (41)

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

  • cinereus says:

    Do you have any news in the long term?

    • Rob says:

      No. Last year they were advertising a UK job to look after a credit card but whenever I speak to them I am told nothing is happening.

  • Lady London says:

    I have had to do hotel searches for UK and Europe recently and found Trivago and Hotelscombined relatively weak, whereas Agoda had some very good rates.

    Otherwise if not booking directlt ( and like @Doug M ad @BJ I do tend to book directly), seems to be pricing to do business.

    • Jack says:

      Plus 8 Avios per £1 through the BA E-Shopping portal at the moment. 8% return isn’t bad at all.

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

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