Airline Credit Cards Discussion Area

Hi All,

I have been looking at getting an Airline credit card, but I am questioning whether they are worth it vs a cashback card. It looks like a lot of T&Cs and restrictions on how you can use your points?

I do a few trips a year currently in Europe and am planning a few further afield in the next year or so, so am looking at ways to reduce the cost of travel.

Pmaddocks86 wrote: »

Hi All,

I have been looking at getting an Airline credit card, but I am questioning whether they are worth it vs a cashback card. It looks like a lot of T&Cs and restrictions on how you can use your points?

I do a few trips a year currently in Europe and am planning a few further afield in the next year or so, so am looking at ways to reduce the cost of travel.

BA promise a minimum of 2 business class and 4 economy seats available for redemption on every flight - including Xmas and New Year. Other seats are released according to demand. If there is low demand from fare paying customers, they will release redemption seats. You will find PE and 1st seats available on some flights.

Many people will book a year in advance, as soon as flights go on sale, to get the redemption seats they are after. But seats are often available nearer the time.

In terms of "is it worth it", it depends how you will use the miles.

If you collect Avios using the free BA/Amex card, you get 1 Avios per £1 spent. You are forfeiting 0.5p per pound spent that you could earn on a cashback card. So is one Avios worth 0.5p?

For me, yes. My aim is to redeem for long haul business class. To fly to NYC and back in business class, you need 100,000 Avios. If you have paid 0.5p per Avios, then that's £500. On top of that, you pay fees and charges, which are about £530.

£1030 for a business class flight to NYC is very good value, but it can be even better. If you want to take someone with you, then upgrade your Amex to BAPP for £195. Spend £10K in your account year and you get a two for one voucher. Two people return to NYC in business class for £1755. That's a real bargain. And that's assuming your Avios have cost you as much as 0.5p

My Avios cost me, on average, 0.3p.

Last year, I collected 134,685 Avios from the following sources:-

Tesco - 39,600
On line surveys - 24,995
Credit Card Spending - 22,091
Car Hire - 18,700
Flights - 14,634
Shopping - 6,705
Miscellaneous - 7,960

And I'm still fairly new to this game. The one thing I've not even looked at yet is "churning". Cancelling your credit card and reapplying after 6 months for a new sign up bonus.

My OH and I are flying business class to LA this summer. It is costing us less than £720 each. At the time I booked the tickets (last June), it would have cost more than £2000 each if I had paid cash. And redemption tickets are flexible. I could cancel now, and get my money and Avios back, except for a £30 admin fee.

And we already have enough miles saved up for another long haul flight next year.

Many people use Avios for short haul economy flights. With a reward flight saver, the fees and taxes are capped at £35 return, meaning you can get a return ticket to most places in Europe for £100. This can be good value in school holidays.

The one place where they are not good value is for long haul economy, where the Avios plus the very high fees and taxes can be more expensive than a cash ticket.

If you want to learn more, head over to https://www.headforpoints.com

And if your going to apply for an Airline Credit Card, ask someone to refer you so you get a referral bonus on top of the sign up bonus.

With the BAPP, I would look at the £195 as being the cost of the 241 voucher.

Use it for two Business Class Tickets to NY and you are saving at least 100,000 avios for £195, so less than 0.2p per avios.

You can upgrade and downgrade between the two BA cards. For example, spend £9000 on the free BA card, then upgrade and only spend a further £1000 to get the voucher.

Or earn the voucher on the paid card, then downgrade and get a pro rata refund on the fee.

https://www.headforpoints.com is the best place to compare airline credit cards, and find out about easy ways to earn avios

Nick_C wrote: »

With the BAPP, I would look at the £195 as being the cost of the 241 voucher.

Use it for two Business Class Tickets to NY and you are saving at least 100,000 avios for £195, so less than 0.2p per avios.

You can upgrade and downgrade between the two BA cards. For example, spend £9000 on the free BA card, then upgrade and only spend a further £1000 to get the voucher.

Or earn the voucher on the paid card, then downgrade and get a pro rata refund on the fee.

headforpoints is the best place to compare airline credit cards, and find out about easy ways to earn avios

That was largely my point. MSE ranks the free card higher than the paid one, yet there's really no reason to get the free one. If you want the voucher then pay the fee and get spend £10k. If you don't want the voucher then get a different card entirely (either the preferred rewards gold card or Platinum Cashback) because 1 Avios per £1 spent is a terrible return compared to other options.