Lloyds Avios Rewards Credit Card: Earn Upgrade Voucher & Avios, plus No Foreign Transaction Fees

The Lloyds Bank Avios Rewards card delivers Avios points on your credit card spending, plus the potential for a free upgrade voucher each year. The Lloyds Avios card is a travel card; it doesn't charge fees for foreign transactions abroad. (Foreign cash withdrawals, like from an ATM, are subject to a fee, however.)

Lloyds Bank Avios Rewards Card Features

  • Earn 1.25 Avios for every £1 spent on the American Express card
  • Earn 1.25 Avios for every £5 spent on the MasterCard
  • Double Avios in the first 6 months on the American Express, up to £2,500 of spend per month
  • No foreign transaction fees
  • Flight upgrade voucher when you spend £7,000 a year, which can only be used on a booking paid for in full with Avios
  • 24 month interest-free period on purchases
  • 1.25 Avios per £5 of balance transfer
  • 0% interest for 24 months on balance transfers (3% fee applies), for transfers made in the first 90 days
  • Annual fee of £24
  • 23.7% APR (or 26.6% or 31.1%, variable)

Pros...

  • No foreign transactions fee on non-sterling purchases made abroad
  • Free upgrade voucher with £7,000 of eligible spend a year

Cons...

  • No companion voucher

Lloyds Bank Avios Rewards Card Review

With the Lloyds Bank Avios account, cardholders will receive two credit cards in the post: an American Express and a MasterCard. With careful redemption of your Avios points, rewards rates can reach 1.25% on the American Express card and 0.25% on the MasterCard. Cardholders earn 1.25 Avios per £1 spent on the Amex and only 1.25 Avios per £5 spent on the MasterCard. By putting as many of your purchases as possible on the Amex, you’ll maximize your rewards. You can earn double Avios on the Amex in the first six months (applies up to £2,500 of spend per month).

The free upgrade voucher, earned with £7,000 of eligible purchases a year, can be used to upgrade from any one class to the next higher class on a given flight (with the exception that you cannot upgrade to First class). The Lloyds Bank upgrade voucher will create more value if you are savvy when redeeming it, for instance upgrading from Premium Economy to Business class on a long-haul flight.

The Lloyds Bank Avios card charges no fees on foreign transactions. If you use this card for non-sterling purchases abroad, be sure to pay in the local currency. (You may be asked if you want to pay in the local currency or pounds; generally speaking you'll get a better FX rate by paying in the local currency as the credit card will usually give you a better rate than the retailer.)

Bottom Line: The Lloyds Avios Rewards card offers the chance to earn 0.25 or 1.25 Avios per pound spent plus an upgrade voucher for £7,000 of eligible spend a year. When used abroad, you'll incur no fees on your non-sterling purchases.

Double Avios

Through a promotional offer you can earn double Avios on the American Express card in your first six months. This reward is capped at £2,500 of eligible spend per month, which could earn you an additional 3,125 Avios per month. This reward is potentially worth £187.50 in the first year only (assuming a value of 1p per Avios), but this value depends on how you redeem your Avios points.

Please keep in mind that you must stay within your credit limit and pay at least your monthly minimum payments on time in order to stay eligible for promotional offers.

Rewards Rate

Ignoring the £24 annual fee, the companion voucher and the double-point promotion for a moment, we calculate the rewards rate on spending to be between 0.125% and 1.25%, if you can achieve a redemption value of £0.01 per Avios. Lloyds gives you two cards: an American Express and a MasterCard. The Amex earns 1.25 Avios per pound spent, achieving potential rewards rates around 1.25%. The MasterCard earns significantly less, 1.25 Avios per five pounds spent, achieving potential rewards rates around 0.25%.

A graph comparing the rewards rates on the Lloyds Bank Avios Rewards MasterCard vs. American Express
Potential Spending Rewards Rates on the Lloyds Bank Avios Rewards MasterCard vs. American Express, assuming a Value of £0.01 per Avios

Lloyds Avios Flight Upgrade Voucher

Each year that you use your card for £7,000 of eligible spend, you'll earn a free flight Upgrade Voucher. These vouchers can only be used on flight bookings that were fully paid for with Avios, and will bump you up by one class on your selected flight (cannot be used to bump up to First Class). Instead of using the upgrade on one round-trip ticket for yourself, there is flexibility to use the voucher for you and a friend on two one-way tickets on the same flight.

The value of this flight upgrade varies, but let’s look at an example. Say you want to fly round trip from London to New York, off peak, using Avios to buy a Premium Economy seat that you’ll upgrade to Business using your Upgrade Voucher. The original Premium Economy seat will cost 52,000 Avios; the upgrade from Premium Economy to Business is worth 48,000 points.

Generally speaking, more value is created with the Upgrade Voucher by upgrading from Premium Economy to Business (i.e., Euro Traveller to Club Europe for flights within Europe, or World Traveller to Club World on longer international flights) than from Economy to Premium Economy. However, prices are always changing and vary from route to route and day to day; you should consider all options to find the best use of your Avios.

DestinationUpgrade from…Avios Equivalent
NYCWorld Traveller (Economy)toWorld Traveller Plus (Premium Economy)26,000
NYCWorld Traveller Plus (Premium Economy)toClub World (Business)48,000

Conditions on the Upgrade Voucher

Vouchers can be used to upgrade by one cabin class, but cannot be used to upgrade to First Class. Vouchers are valid for one year from date of issue and only one upgrade voucher can be used a year. Eligible spend excludes cash withdrawals, balance transfers, refunded purchases, interest, fees and other charges. British Airways code-share flights and flights from London City airport are excluded.

Spending Avios

In addition to using Avios to purchase or upgrade flights, Avios can also be used to purchase stays at hotels, holidays, cruises, car hire, activity days, cases of wine or beer, etc. Below are some examples of other ways to spend Avios points:

RewardAvios Used
Deluxe Spa for Two27,000
Comedy Night for Four8,000
Six Bottles of Champagne27,500
Everyday Dozen Case of Wine14,500
Car Hire in Nice (Opel Corsa)20,800
Hotel Stay in Cotswolds (4 Star)36,600

Lloyds Avios Rewards Balance Transfer Offer

Cardholders can earn Avios for balance transfers on their Lloyds Bank Avios Rewards card. The Lloyds Avios card charges 3% for the balance transfer, and waives interest for 24 months. In exchange you earn 1.25 Avios per £5 of transferred balance. Assuming an Avios value of 1p, we calculate a return of 0.25% on your balance transfer, effectively dropping your fee from 3% to 2.75%.

Lloyds offers another 24-month balance transfer and purchases card that charges a lower fee of 2.5% for transfers made in the first 90 days; or a 24-month balance transfer card that charges no fee for transfers made in the first 90 days. However, if you need one card that does both earn Avios and offers 24 months of no interest on both balance transfers and purchases, you may find this card worth the slightly higher fee. It all depends on your individual situation.