For years the only way to collect Avios points – the British Airways air miles scheme – has been with an American Express credit card. The issue with that has always been that many retailers don’t accept Amex. But now you can collect your Avios points with a Mastercard.
Barclaycard has launched two new credit cards that earn Avios points every time you spend. They are “the most generous Mastercard or Visa credit cards available,” according to Rob Burgess, the editor of Head for Points, a website for frequent flyers looking to maximise their rewards.
The first new card is the Barclaycard Avios. It has no fee, and you can earn one Avios point for every pound spent. If you spend £1,000 in the first three months, you’ll get a bonus 5,000 Avios. That’s enough for a flight to Paris or Amsterdam. Plus, if you spend £20,000 a year on the card, you’ll get a free flight upgrade voucher.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Alternatively, you can pay £20 a month for the Barclaycard Avios Plus card. That gets you 1.5 Avios points per £1 spent. If you spend £3,000 in the first three months, you’ll get 25,000 bonus Avios points and spend £10,000 a year and you’ll get a cabin upgrade voucher.
On top of that with both cards you’ll get a five-month free subscription to Apple Music, Apple TV+, Apple News+ and Apple Arcade. “You honestly couldn’t ask for more from a non-Amex credit card,” says Burgess.
The Amex option
The key advantage of the Barclaycard Avios cards is they are operated via Mastercard rather than American Express. Mastercard is much more widely accepted than American Express, so you won’t face the annoyance of missing out on Avios points when your Amex is rejected. That said, the Amex cards are still attractive.
The fee-free British Airways American Express card earns points at the same rate as the free Barclaycard version and has the same joining bonus. But you only need to spend £12,000 a year to get a companion voucher – that’s £8,000 less than the Barclaycard and you get a free flight (although taxes and charges apply) rather than just an upgrade.
The Barclaycard Avios Plus card is £10 a year cheaper than the Amex equivalent and certainly worth considering if you are willing to pay a fee for your credit card. It offers the same earnings rate as the BA Premium Plus Amex and the same welcome bonus. The difference is that if you spend £10,000 a year on the Amex card, you’ll again get a free companion voucher rather than just a cabin upgrade. So, it all depends on whether you want a cheap flight for a friend or to fly in style yourself.
Reward credit cards can be a great way of getting more when you shop but are best avoided if you can’t pay off your balance in full each month. The interest rates on these types of credit card tend to be high and, if you pay it, you’ll soon wipe out the benefits. Both the Barclaycard Avios cards charge interest at a 23.9% annual rate, but you can avoid this if you pay your bill on time and in full every month.
-
'Gen Z is facing an AI jobs bloodbath'Opinion It has always been tough to get your first job, but this year, it's proving tougher than ever. AI is to blame, says Matthew Lynn
-
Beazley: a compelling specialist insurerThe insurer Beazley is unusually profitable at present, and that looks set to continue. The stock is also a valuable portfolio diversifier, says Jamie Ward
-
Is Britain heading for a big debt crisis?Opinion Things are not yet as bad as some reports have claimed. But they sure aren’t rosy either, says Julian Jessop
-
What is the Enterprise Investment Scheme and should you have one?The Enterprise Investment Scheme is tax-efficient and potentially lucrative. Taking a chance on the scheme could trim your family’s IHT bill, says David Prosser
-
What are wealth taxes and would they work in Britain?The Treasury is short of cash and mulling over how it can get its hands on more money to plug the gap. Could wealth taxes do the trick?
-
Self-employed? Start saving for your pension nowBritons who are self-employed have neglected to build up their retirement fund. They must act now
-
Why is Britain's industrial base crumbling?Opinion More and more factories in the UK are closing, and the government doesn’t seem to care. What’s going on?
-
Scotland's former first minister Nicola Sturgeon leaves behind a toxic legacyOn the left, Nicola Sturgeon is seen as something of a political hero. That makes sense… but only if you exclude her actual record in office
