Credit cards get less rewarding

Lloyds "has dealt a blow to existing customers by hacking at the rewards for its popular Avios Rewards credit cards", says Emma Gunn on ThisIsMoney. Lloyds closed its Avios Rewards scheme to new members back in May and it is now cutting how many Avios points existing members can earn from 1.25 per £1 spent to just 0.4 per £1.

This doesn't mean you should ditch your Lloyds card. "You won't find a better Visa or Mastercard earning rate," says Gunn. But if you switch to American Express, you could earn one Avios per £1 spent with the free BA American Express card; with the Premium Plus BA card, you will get 1.5 points per £1 spent.

If you'd rather not be tied to the Avios system, MoneySavingExpert recommends the American Express Preferred Rewards Gold card, which enables you to convert points into air miles. You earn one mile for every £1 spent, plus 20,000 bonus points if you spend £2,000 in the first three months.

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Alternatively, you can spend the money earned with a cashback card wherever you like. The Amex Platinum card pays you 5% cashback for the first three months, then up to 1.25% depending on how much you spend.

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Ruth Jackson-Kirby is a freelance personal finance journalist with 17 years’ experience, writing about everything from savings accounts and credit cards to pensions, property and pet insurance.