Fancy a free flight for your everyday spending? A reward credit card offering air miles may be right up your street...
Would you like to be rewarded for your everyday shopping?
Even better, imagine flying to New York, glass of bubbly in tow - all courtesy of your credit card.
Well, with a reward credit card offering air miles, a free flight could be just round the corner.
Credit cards which offer you reward air miles are very similar to cashback credit cards, only instead of points or cash, you collect miles for every pound you spend. These can be redeemed for rewards, including leisure activities, days out - and, of course, flights.
You don't need to be a frequent flier to benefit from these reward schemes, although it often does help. The key word here is loyalty. And if you are loyal, and savvy enough, it can pay.
Here's a selection of cards on the market at the moment:
Provider | APR | Reward | Notes |
|---|---|---|---|
17.9% | One BA mile for every £1 spent. 1,000 bonus miles on first spend. | ||
British Airways American Express Premium Plus Card | 37.8% (inc. fee) | 1.5 BA miles for every £1 spent. Three miles for every £1 spent on a BA holiday. 6000 bonus miles on first spend. | Annual fee of £120 applies. |
17.9% | One Flying Club mile for every £1 spent. 3,000 bonus miles on first spend. | Spend £10,000 and qualify for an upgrade to premium economy. Earn double miles when booking Virgin holidays. | |
Virgin Atlantic Black Card | 37.1% (inc. fee) | Two Flying Club miles for every £1 spent. 6,000 bonus miles on first spend. | Annual fee of £115 applies. Spend £5,000 and qualify for an upgrade to premium economy. Earn double miles when booking Virgin holidays. |
BMI American Express Credit Card | 15.9% | 1.5 destinations miles for every £1 spent. 20,000 bonus miles when you spend £250. | Earn double miles for purchasing BMI flights at flybmi.com |
Lloyds TSB Airmiles Duo Credit Card | 15.9% | One Airmile for every £10 spent on the Lloyds TSB American Express Card. One mile for every £50 spent on the Lloyds TSB Mastercard. | Free 1,500 Airmile voucher when you first spend £10 or more. |
Airmiles is probably the best known reward scheme offering flights as a reward, and is also the best way to collect miles on your everyday shopping.
Many retailers have signed up to the scheme, including Tesco, Shell and even eBay, allowing you to double the miles you collect by shopping at these stores and paying for these purchases with your credit card.
The Lloyds TSB Airmiles Duo card offers one mile for every £10 you spend using the American Express card, and one mile for every £50 you spend using the MasterCard. The cards are linked to one account, with the MasterCard essentially designed as a backup card where American Express is not accepted. You also earn double miles when using the card abroad.
In addition, if you sign up before the end of April, Airmiles will give you a free 1,500 Airmile voucher. This is enough for two return flights to any destination in Zone 1, meaning you could get two return flights to Paris or Amsterdam just by spending £10 on the card.
It is also worth highlighting that unlike some reward schemes, with Airmiles, there are no taxes, fees and charges to pay on top of your points. If you don't rack up the miles that quickly, there is also the option of paying a cash subsidy together with fewer Airmiles.
An idea of how quickly your Airmiles can build up can be found here.
Major Players
Two major airline players also have their fingers in the reward card pie.
Virgin Atlantic and British Airways both have similar credit card reward schemes, allowing you to collect miles towards a range of leisure activities or flights.
Loyalty really does pay with these cards, as frequently flying with these airlines or booking holidays through their holiday service will earn you extra miles. However, miles earned can only be redeemed against flights operated by them or their partner airlines, so may restrict your choices.
Come Fly With Me
If you are a very big spender, and want to accelerate the miles you collect, the BA American Express Premium Plus card offers 1.5 BA miles for every £1 you spend, compared to one BA mile for its standard reward card. You also get 6000 bonus miles on your first spend.
In addition, if you spend £10,000 in one year, you can get a free companion ticket when you redeem your miles for a BA flight (taxes and fees apply).
Virgin offers a similar scheme on its Black credit card. An annual spend of £7,500 will earn you a companion ticket, with two Flying Club miles earned for every £1 spent.
However, if you want the luxury of being able to collect miles more quickly, then be prepared to fork out a £120 fee for the BA card and £115 for the Virgin credit card.
This is quite a hefty charge considering that most credit cards have no standard charge, but may, and I stress the word, may be beneficial if you are a big spender looking to maximise the rewards on your card.
Companion tickets are also offered with the free cards, but you have to spend £20,000 and £15,000 respectively on the BA and Virgin standard reward cards to qualify.
Do The Maths
It's also worth weighing up how much you'll have to spend to qualify for a free flight, as different reward schemes require a different number of qualifying 'miles'.
For example, 750 miles will get you a free return flight to Paris including tax with Airmiles, whereas you would need a whopping 9,000 BA miles to qualify for a similar flight (excluding tax) with British Airways.
In fairness, the BA card does clock up miles more quickly. So for £10,000 of shopping you would get 15,000 BA miles with the BA Premium Plus card compared to 1,000 Airmiles with the Lloyds TSB Airmiles Duo.
A Word Of Caution...
As with all cashback or reward credit cards, you shouldn't apply for one unless you pay off your balance in full every month, as all the cards mentioned have a negative payment hierarchy. If you do let your balance roll over each month, then it's probably better to look at other 0% deals on the market.
Still, if you fancy jetting off into the sun courtesy of the airline, are a big spender, and would like to maximise the benefits of your credit card - then a reward credit card may just be right for you.
More: The Best 0% Balance Transfer Credit Card In Town | Be Careful With Your Credit Card Overseas