Barclaycard has launched two new credit cards that give customers the opportunity to collect Avios points for every £1 spent.
Barclaycard Avios and Avios Plus cards are available to new and existing customers and come with additional travel benefits.
The free version offers new customers 5,000 Avios when they spend £1,000 in the first three months. Existing customers who convert collect 1,000 points if they spend £1,000 in the first three months.
Customers collect 1 point for every £1 spent. One industry expert described the new cards as “the most generous Visa or Mastercard credit card available in the UK.”
New and existing Barclaycard customers can top up their Avios balances
New members who sign up for the Avios Plus card will be rewarded with 25,000 points when they spend £3,000 or more within the first three months, the equivalent of a flight back to a European city.
Existing customers will collect 5,000 points if they spend £3,000 over the same period.
Customers who use the card face a monthly fee of £20, but collect 1.5 points for every £1 spent. Avios can be converted into flights, flight upgrades, and hotel stays.
Plus, the prepaid card is charged monthly—rather than annually like the equivalent American Express cards—which means that once you’ve secured the reward, the card can be returned.
Nothing stops you from getting an Avios Plus card for a few months while you earn a 25,000 Avios sign-up bonus and then redeem it for the free card.
You can even downgrade via the Barclaycard app without having to connect.
He also recommends that those who have a free British Airways American Express credit card consider canceling it and switching to the new free Barclaycard Avios.
Nothing prevents you from getting your Avios Plus card for a few months while you earn 25,000 Avios sign-up bonus and then exchange it for the free card. You can even downgrade via the Barclaycard app without the need to connect.
Rob Burgess – Header for points
All Amex cardholders need to carry a Visa or Mastercard where Amex is not accepted.
“Exchanging your Amex card for a free Barclaycard allows you to reduce the size of your wallet or purse and reduce the number of monthly card bills you receive.”
As always with rewards credit cards like these, you need to stick to the rules or face very high interest penalties — that is, you have to pay off the balance as you go.
Rob warns that interest rates on these cards, if you don’t pay off your entire balance each month, are “exceptionally high” at more than 20 percent annually.
The benefits of any rewards you will earn will quickly be swamped with interest charges.
If you can’t clear your credit card balance every month, you should use a credit card with a low APR, preferably less than 10 percent. You won’t earn any rewards but you will be better off.
A new Barclays Premier Current Account holder who joins Barclays Avios Rewards (£12 per month), plus receives the new Barclaycard Avios Plus (£20 per month) as a new customer, can earn over 80,000 points and two cabin upgrade vouchers at First year – enough for a return trip to New York, Tokyo or Dubai.
They would also get £5 back in their checking account, every month, for keeping both products.
Oddly enough, the cards are also an amazing value for people who never get close to an airplane, says Rob.
The ability to convert Avios points into Nectar points at a rate of 1 to 1.6 means that the free Barclaycard Avios card earns 0.8 percent on shopping vouchers.
“That’s 300 per cent to 400 per cent more than a typical UK Visa or MasterCard – Amazon, John Lewis and Marks & Spencer credit cards only pay 0.2 to 0.25 per cent on public spending.”
Other benefits include an annual cabin upgrade voucher if customers spend a minimum of £20,000 on the free pass and a minimum of £10,000 for Avios Plus customers, as well as leisure privileges from Barclaycard, which offers up to 10% off tickets. Pre-sale, food and beverages at selected events and venues.
New Barclaycard offer could give you up to 25,000 Avios which can be used on flights and hotels
Cardholders will also be granted access to Priceless which is available exclusively to Mastercard cardholders and offers further discounts in the areas of entertainment, culture, travel and shopping.
“With Brits wanting to go on holiday after nearly two years of restrictions, we are excited to launch two new cards that will help customers get away more often, to see the people and places that matter most,” said Jose Carvalho, president of the company. Consumer Products at Barclays.
With value for money still top of mind in 2022, our partnership with IAG Loyalty will help customers increase the value they get from their everyday spend, enhance their overall travel experience and make that much-craved trip a reality.”
Both cards are available to new and existing Barclaycard customers upon application – find out more here.
Some of the links in this article may be affiliate links. If you click on it, we may earn a small commission. This helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to influence our editorial independence.