Credit cards are a tricky subject when it comes to determining which one is the right fit for each consumer. Card companies always offer flashy rewards programs or cash back offers for new applicants that generally take place within the first few months of card use. However, sometimes these rewards are not everything they are cracked up to be. This is why it is important to analyze each rewards program before signing up for a new credit card. Lloyds TSB is offering a new credit card rewards program that actually appears to fulfill a reasonable reward within the first three months of card use. UK residents should look out for this program as a viable option to earn reward miles.
Lloyds TSB’s new card is named Duo Avios. They are enticing consumers to their card by offering 15,000 Avios miles if the consumer spends £500 each month for the first three months. The monthly timeline begins on the date the account was opened and not on the day the card was received. It is important for consumers to note that the first spending period month may not be a full month. In order to receive the miles, card users would have to spend the £500 within a smaller time window. Potential applicants only have until the beginning of August to apply for the new Duo Avios credit card and receive the opportunity for the 15,000 additional Avios miles.
Lloyds TSB further markets their new reward offer of 15,000 Avios miles, which used to be called AirMiles, as enough mileage to purchase a regional European return flight to the UK. For example, flights back from Rome, Berlin, or Budapest are claimed to be free if the cardholder completes the £500 spending quota for the first three months. Consumers should just be aware that there might be underlying restrictions to what particular flights the free miles can be used on. Often certain dates are blocked off as unavailable to utilize reward miles or there could be an additional fee for booking flights using these miles.
It is important to note that users who possessed an Avios card before the reward date started are not eligible for the offer. The 15,000 bonus Avios miles will only be available to new consumers of Lloyds TSB.
The new credit card program, Duo Avios, will also mail new customers two credit cards for use. One will be an American Express card and the other will be a MasterCard. In a slightly more detailed fashion, the £500 spending quota must be completed on the American Express card and not the MasterCard. However, both cards will be registered to only one account. Thus, the additive totals of the purchases for both the American Express card and MasterCard will be payable on the same bill.
Furthermore, each of the two cards will offer different continuous rewards from the 15,000 Avios miles offer in the first three months. For each £1 spent on the American Express card, the cardholder will amass 1 Avios mile. This is significantly better than the MasterCard side of the program where consumers will receive 1 Avios mile for every £5 spent using the card. If the cardholder wishes to transfer existing credit card debt to the Duo Avios credit cards, for every £1,000 transferred the consumer will receive 1,5000 Avios miles. In addition to the reward miles, Lloyd TSB is offering a six-month interest-free period on those balances.
As with all credit cards, it is important to note the annual percentage rate. The APR of the Duo Avios cards will be 17.9 percent for all immediate new purchases and balance transfers after the six-month interest-free period.
The one thing consumers in the UK will want to watch for with this new card is the balance at the end of the month. Certainly for cardholders that can afford to pay off their balance of over £500 for the first three months this is a great opportunity to get thousands of Avios miles. A return flight will most likely be useful, whether for holiday travel or business. However, if a consumer cannot pay off the balance at the end of the month, the interest for that first £1,500 will more than outweigh the cost of a regional return plane flight.
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