Airline Credit Cards Earn miles for free flights worldwide

Earn flights worldwide for you and your partner, just for spending on a different piece of plastic. Frequent flyer credit cards are an easy way to travel the world in luxury at a reduced cost.

This is full guide to the top paying airline credit cards, how to use them, boost your miles and do it all safely.

Who should get one?

Airline credit cards are an extension of frequent flyer programmes. Here you earn miles as you spend, not as you fly, plus you can get bonus miles for signing up.

Miles earned spending can be combined with those earned flying – or from things such as converting Tesco Clubcard points. Added together, you can accrue much more quickly. See the Boost Avios Points guide for full info.

When you've collected enough miles they can be converted into flights (taxes and charges must still be paid). Availability is much more limited than when paying for flights, so ensure you're flexible when booking.

The more you spend, the more often you fly, and the further you go, the better these cards are for you.

For that reason we've focused this article on higher spending levels. If that's not you, read the Top Cashback Credit Card and Cheap Flights guides. If you think frequent flyer miles cards are for you...

And always remember....

Always set up a direct debit to repay the card in full each month, so you'll never pay interest

Card companies offer reward schemes because they want to encourage you to spend on the card so they can earn interest from it. If you don't repay IN FULL by direct debit, the interest cost on all reward cards dwarves any gain you get.

The top frequent flyer credit cards

We've crunched the numbers on the big frequent flyer credit cards to narrow down the best way to earn miles while you spend.

All the top cards are American Express - which isn't quite as widely accepted as Visa or Mastercard in smaller stores (see the Retailers who accept Amex table and the Who takes Amex? forum discussion). We can't find any decent non Amex options but some cards offer a Mastercard on the same account, although the miles here aren't as good.

Don't compare miles per pound spent across different schemes as miles vary. It's all about how far you can fly on different spending.

Top Avios cards

There are a few cards offering Avios when you spend, full details of which are below. It is also possible to earn Avios with the Tesco credit card, but this never comes top - the main advantage here is spreading the cost of a big purchase (see 0% Spending Cards).

Avios vs BA Executive Club Avios

Confusingly, both the BA Executive Club and Iberia Plus points are called Avios too. Avios points are worth the same, regardless of scheme.

Avios says the main Avios scheme's better for irregular travellers and the BA Executive Club's best for frequent flyers, offering benefits such as free airport lounge access. However, you can move or pool Avios and BA Executive Club points at any time, so if you change your mind later, it doesn't matter.

Fee-free cards:

BMI credit card - Good intro freebie 20,000 miles, can be converted to Avios. Taxes not included.

• Intro bonus? 20,000 miles
• Standard miles: 1.5 for every £1
• Rep variable APR: 16.9% Official APR example
• Annual fee: N/A
• Min income: N/A
• Miles expire after? No expiry date Can I buy extra miles?

Update 24 April 2012: BMI has been taken over by British Airways owner, International Airlines Group. From 3 July, you can transfer miles between the BMI Diamond Club and BA Executive Club, so you can change destination miles into Avios at a rate of one to one. See below for further details.

The BMI is the quickest way to accrue long distance miles, however as with the other cards you have to pay the taxes. Also there's no free companion flight.

Good if... you're after an intro bonus that'll get you a decent long distance flight

The BMI* credit card comes with both an Amex and Visa but only spend on the Amex as it gives you more miles; 1.5 for every £1 you spend. You'll have to pay taxes when you redeem miles.

MBNA, which provides the card, says there are no plans to change the features on it, though with the BA takeover, there's a chance the terms could change in the future.

The rate on purchases for this card is 16.9% representative APR. Until 31 May miles can be redeemed on BMI and Star Alliance airlines (excluding Lufthansa). After this they can be used on Oneworld airlines, which include BA, American Airlines and Qantas.

Destination	Paris	New York	Cape Town
Class	Eco	Eco	Biz
Passengers	1	2	2
Spend needed	£6,000	£60,000	£100,000
Approx Taxes	£90	£610	£1,400

Introductory offer: 20,000 miles

Spend £250 within 90 days and you get 20,000 miles, enough for a business class return to Turkey or two economy returns to closer destinations such as Germany. Alternatively from 3 July you can convert the miles to Avios.

BMI or Avios - what's the difference?

• From 3 July you can transfer miles between destination miles & BA Avios If you hold miles with either the BMI destination miles or BA Avios schemes you'll be able to transfer them from one to the other. You can no longer earn miles on Star Alliance airlines, but you can earn them on BMI as well as BA flights.
• Is there a difference? With Avios the taxes are lower for certain destinations. There's also a wider choice of destinations (see the Avios site for where you can go). BMI miles still have their perks - you can sometimes go further for less miles.
• What happens to the bonus miles with the BMI cards? After 3 July you'll be able to convert them into BA Avios, if you want to. Your membership will become transferable to the BA Executive Club. All destination miles you currently have can be changed over, mile for mile so 1,000 destination miles will become 1,000 Avios.

For more details on the changes, there's a list of FAQs on the BA site.

Close

No minimum income: Lloyds Duo Taxes not included.

• Intro bonus? N/A
• Standard miles: 1 for every £1
• Rep variable APR: 15.9% Official APR example
• Annual fee: N/A
• Min income: N/A
• Miles expire after? 3 years from when you collect your last one Can I buy extra miles?

This card also gives Avios, however with slightly different terms. You don't need to have a set minimum income to apply and it doesn't offer a companion flight.

Good if... you're a lower earner and not interested in the companion flight

The Lloyds Duo Avios* gives one Avios for every £1 spent. It comes with both an Amex & Mastercard, though only spend on the Amex as it gives the most miles.

For additional ways to earn Avios including converting Tesco Clubcard Points, see Boost Your Avios. Ensure you repay in full to avoid the 15.9% representative APR. If you want to boost miles further, also see the Lloyds Premier Duo card below.

Destination	Paris	New York	Cape Town
Class	Eco	Eco	Biz
Passengers	1	2	2
Spend needed	£9,000	£80,000	£200,000
Approx Taxes	£95	£660	£1,120

Introductory offer: 18,000 miles

Apply before 18 July 2012 and you'll get an 18,000 Avios voucher if you spend £500/mth in the first three months. Which can get 2 Eurostar tickets to Paris. However you must book one night in a hotel via Avios. See below for examples and more details.

See what you can get with the bonus, plus more info

• What can the voucher be used for? For 18,000 Avios you can get two 9,000 Avios return tickets on Eurostar and pay no taxes. Alternatively you can get a return flight to Barcelona or Rome with 15,000 Avios, although you'll be charged £27 for taxes. With both you need to book a night in a hotel which can cost around £70.
  
  Existing Avios can also be combined with the voucher, allowing you to go even further (see the Avios site for where you can go). Read more info on how to spend miles in the Avios Boosting guide.
• Are there any restrictions? You can only use the voucher for one booking, so any remaining miles will be lost. It can be used for more than one passenger and is valid for 12 months. Plus you must book one night in a hotel through Avios.
• What airlines can miles be redeemed against? Avios can be redeemed on BA and other 'oneworld' airlines, including BA and American Airlines.
• Additional cardholder: Those in trusting relationships can boost their Avios further by adding a partner to your account. The points accumulated when they spend will also be added to your account, making your points grow quicker.

Close

Discuss the Lloyds Duo credit cards in the Forum Discussion

Companion ticket on £20k spend: BA AmexTaxes not included.

• Intro bonus? 1,000 miles
• Standard miles: 1 for every £1
• Rep variable APR: 19.9% Official APR example
• Annual fee: N/A
• Min income: £30,000 household
• Miles expire after? 3 years from when you collect your last one Can I buy extra miles?

The BA Amex card is the only one here that gives a free companion ticket without any annual fee, but you need to spend over £20,000 in a year to get it.

So it's good for bigger spending couples, wanting long haul flights - though you must pay taxes and charges.

Good if... you're a higher earner but want a fee-free card, with the opportunity to get a companion ticket

On the BA Amex* you accrue one Avios for every £1 spent. In addition, spend £20,000 on your card in a year and you'll get a free companion ticket to use when you redeem your miles.

For additional ways to earn Avios, including converting Tesco Clubcard Points, see Boost Your Avios Points. Be sure you repay in full, otherwise the gain will be eroded by the 19.9% representative APR.

If you want to boost Avios quicker, and will make paying an annual fee worthwhile, see the BA Premier Plus card below.

Destination	Paris	New York	Cape Town
Class	Eco	Eco	Biz
Passengers	1	2	2
Spend needed	£9,000	£40,000	£100,000
Approx taxes	£95	£660	£1,120

Introductory offer: 1,000 miles

Apply now and you'll get an extra 1,000 Avios if you spend £500 within the first three months.

Considering this card? See our extra info

• What airlines can miles be redeemed against? Avios can be redeemed on BA and other Oneworld airlines, including BA, American Airlines, Cathay Pacific and Qantas. See the Avios site for where you can go.
• Companion ticket: The companion flight can be used to get the same ticket type as the cardholder (if you go first class, so do they), though only on BA and is valid for 12 months. You'll also need to pay taxes and charges. You can continue to collect points after it has been issued, but ensure you leave enough time as seat numbers can be limited when redeeming miles.
• Additional cardholder: Those in trusting relationships can boost their Avios further by adding a partner to your account. The points accumulated when they spend will also be added to your account, making your points grow quicker.

Close

Discuss the British Airways credit cards in the forum discussion

Best for serious Avios collectors:

BA Premium Plus Amex £150 annual fee. Companion ticket with £10k+ spend.

• Intro bonus? 18,000 miles
• Standard miles: 1.5 for every £1
• Rep variable APR: 50.1% Official APR example
• Annual fee: £150
• Min income: £30,000 household
• Miles expire after? 3 years from when you collect your last one Can I buy extra miles?

This card's annual fee is a whopping £150, however it has a bigger intro bonus and 50% more miles per £1 than the fee-free version above. It becomes better at about £10,000 spend, as the points value doubles at the companion flight threshold. Though think very carefully; if you don't use the flights or they aren't available, £150 is a lot to waste.

Good if... you'll spend enough to make the fee worthwhile, and will use the companion ticket

The BA Premium Plus Amex* gives 1.5 Avios for every £1 spent. With this card, the threshold to get the companion flight is £10,000. See Boost Your Avios for additional ways to earn Avios.

The annual fee on this card is a huge £150 and will show on your first statement. Be sure you'll use the miles, otherwise you're just wasting cash. The APR on purchases is 19.9% (or 50.1% representative including the annual fee).

Destination	Paris	New York	Cape Town
Class	Eco	Eco	Biz
Passengers	1	2	2
Spend needed	£6,000	£26,666	£66,666
Approx taxes	£95	£660	£1,120

Introductory offer: 6,000 miles

You'll get an extra 6,000 Avios after making your first purchase.

Considering this card? See our extra info

• What airlines can miles be redeemed against? Avios can be redeemed on BA and other Oneworld airlines, including BA, American Airlines, Cathay Pacific and Qantas. See the Avios site for where you can go.
• Companion ticket: The companion flight can be used to get the same ticket type as the card holder, though only on BA and is valid for 24 months. You'll also need to pay taxes and charges. You can continue to collect points after it has been issued, but ensure you leave enough time as seat numbers can be limited when redeeming points.
• Additional cardholder: Those in trusting relationships can boost their Avios further by adding a partner to your account. The points accumulated when they spend will also be added to your account, making your points grow quicker.

Close

Discuss the British Airways credit cards in the forum discussion

Lloyds Premier Duo Avios Amex £50 annual fee. Companion ticket with £15k+ spend.

• Intro bonus? N/A
• Standard miles: 1.25 for every £1
• Rep variable APR: 21.9% Official APR example
• Annual fee: £50
• Min income: N/A
• Miles expire after? 3 years from when you collect your last one Can I buy extra miles?

This card charges a £50 annual fee, a good enough reason for most to avoid it. However, it does gives 25% more miles per £1 than the fee-free version, and a companion ticket if you spend over £15,000 a year. It's not as good as the BA Premium Plus, but the fee is a lot lower.

If you don't think you'll spend that much or don't need the extra flight, it's not worth paying the fee - you might want to consider the fee-free version above.

Good if... you're a bigger spender but want a lower fee

On the Lloyds Premier Duo Avios Amex* you earn 1.25 Avios per £1 spent.

If you reach £15,000 spend in a year you'll get a companion flight (you'll still need to pay taxes), which can be used when redeeming your Avios. However, unlike other companion tickets this can only be used on BA economy.

The APR on purchases is 13.1% (or 21.9% representative APR including the annual fee). For additional ways to earn Avios including converting Tesco Clubcard oints, see Boost Your Avios.

Destination	Paris	New York	Cape Town
Class	Eco	Eco	Biz
Passengers	1	2	2
Spend needed	£7,200	£32,000	£160,000
Approx Taxes	£95	£660	£1,120

Introductory offer: 30,000 miles

Apply before 18 July 2012 and you'll get a 30,000 Avios voucher if you spend £500/mth in the first three months. You must use all 30,000 avios in one booking and you must book at least two nights in a hotel via the Avios site. It can be used for more than one passenger and is valid for 12 months.

Considering this card? See our extra info

• What can the voucher be used for? For 30,000 Avios you can get one 20,000 Avios return flight to Marrakech or Istanbul plus £27 in taxes. With both you'll also need to book two nights in a hotel which'll cost around £55-£100. Alternatively you can get a return flight to Cairo with 25,000 Avios, although you'll be charged full taxes. Two nights in a hotel will cost around £50.
  
  Existing Avios can also be combined with the voucher, allowing you to go even further (see the Avios site for where you can go). Read more info on how to spend miles in the Avios Boosting guide.
• What airlines can miles be redeemed against? Avios can be redeemed on BA and other Oneworld airlines, including BA, American Airlines, Cathay Pacific and Qantas. See the Avios site for where you can go.
• Companion ticket: The companion ticket here (valid for 12 months from issue) is more restrictive than on the BA cards; you can only get it for British Airways economy flights. You'll still have to pay taxes and charges on top.
• Additional cardholder: Those in trusting relationships can boost their Avios further by adding a partner to your account. The points accumulated when they spend will also be added to your account, making your points grow quicker.

Close

Discuss the Lloyds Duo credit cards in the forum discussion

Can I buy extra miles?

All the above schemes allow you to buy extra miles, so if you're just short of enough miles you can top them up. Better still, if you're collecting miles and also redeeming a companion flight you effectively get double the value.

Once you have joined the scheme extra miles can be bought online at Avios, British Airways and BMI. Keep an eye out for promotions when buying miles as sometimes it's possible to get up to 25% extra for free.

Think before adding the 'insurance'

Payment protection insurance is commonly sold with credit cards - the idea is it'll make some payments for you, usually for a year, if you are unable to (eg, if you lose your job).

There have been hundreds of thousands of cases where it has been mis-sold where borrowers didn't realise they were signing up for it, or it was totally unsuitable for them, and some big lenders have been fined.

The protection isn't always bad, though policies sold with cards are often overpriced (you pay a monthly amount depending on the size of your balance). If you want it, compare the lender's cover with standalone providers such as Paymentcare or Best Insurance.

Always be vigilant to check you aren't getting more than you bargained for when you fill in the application, then check your statement each month to check you aren't inadvertently paying for extras if you didn't ask for them.

How to get the best out of these cards

For some, it's possible to use nifty tricks to really rack up the miles....

• Long haul and business class provide best value
  
  Using your miles for long haul business class flights gives you a substantially better cash equivalent return - on some cards with companion tickets, up to 5% back on your spending on the card. All the schemes require you to pay taxes, which defeats much of the gain on short haul.
  
  This is, of course, at business class flights' list value, and you pay a huge amount more for that extra comfort - many days worth of 5 star hotels worth. So it depends on how much you value flying business as you get more flights using your miles for economy trips and don't have to wait as long to earn enough.
• Use it for all spending
  
  

  These cards are designed to encourage you to spend. Obviously we'd never want you to spend more than you need. Instead, use the card for all normal day-to-day purchases, instead of debit cards, or cash, cheques or other credit cards. Then set up a direct debit to repay in full each month and you'll soon see the miles adding up.

  Beware of setting up regular payments from it, or any other credit card, though. These are technically called recurring payments and unfortunately, unlike standing orders or direct debits, once set up you can't cancel them, only the company you're paying can. If you're in dispute, this can be a nightmare (see the Recurring Payments guide for more).

  Plus you get extra protection too, click here to find out more

  
  
  There's another big bonus to using any credit card. You actually have far more consumer protection. This all comes about due to what's called Section 75 of the Consumer Credit Act 1974, which says...
  
  75. — (1) If the debtor under a debtor-creditor-supplier agreement falling within section 12(b) or (c) has, in relation to a transaction financed by the agreement, any claim against the supplier in respect of a misrepresentation or breach of contract, he shall have a like claim against the creditor, who, with the supplier, shall accordingly be jointly and severally liable to the debtor.
  
  

  Which of course, reads like gobbleydegook... yet in a nutshell means:

  Buy something costing over £100, here or abroad, and pay on a credit card, and the card issuer's equally liable if something goes wrong.

  Now this protection only applies to credit cards, not debit cards or any other plastic and it's hugely important, especially in the current credit crunch climate. If you order something and the retailer went kaput, you'd still be able to claim your money back from the card company. Read a full guide to Section 75 refunds.

• Make your partner a cardholder too
  
  Assuming you are in a trusting relationship, arrange for a second card on the same account for your partner, so both your spending collects the miles. This technique is particularly useful for cards that need you to hit a certain target to get a free companion flight.
  
  Remember, with credit cards there's no such thing as a joint card - it's your card and you're giving them permission to spend on it. Any spending is yours to pay off, not theirs.
  
• Use companion tickets wisely
  
  Some frequent flyer programmes give you a companion ticket over a certain amount of spending. This means you get to take someone else with you under exactly the same conditions for no extra miles.
  
  In other words if you're going business to Miami, they come for free (though most cards require you to pay taxes for both as well).
  
  If your card does that, it's worth waiting until you've got the companion voucher before spending your miles as you get much better value from them. Remember, they usually only last a year.
• If you can use it for expenses
  
  For those who have work expenses they need to reclaim, this can be a powerful way to earn more miles at no cost to you, provided you can cope with paying the bill in full each month. Check it's fine with your employer though, and there's a chance it could be seen as a taxable benefit (you'll still be up even if it is though).
• Keep your eye open for miles' sales
  
  Over the last couple of years a number of the frequent flyer schemes such as BA and Virgin have done miles sales - which temporarily reduce the number of miles needed to fly somewhere. Be ready to pounce if they happen.
• Ensure you claim miles when you fly too
  
  These cards are just one part of frequent flyer schemes. You also earn miles when you fly, so ensure that whenever you go on a qualifying airline you claim the miles to maximise the gain. With Avios, you can also earn miles for spending in various places - see the Boost Your Avios guide.
  

Beware of transfers or cash withdrawals

It's important to understand you normally only earn the miles when you spend on it. Other transactions don't apply. Worse still there can actually be nasty consquences for doing anything other than spending on a frequent flyer card.

• Never use frequent flyer cards for withdrawing cash
  
  Withdraw cash and you'll often be charged a fee. Even if you pay the card off in full, you'll usually be charged some interest. The rule's simple: never, ever, ever use these cards for cash withdrawals.
  
• Avoid balance transfers on a frequent flyer card
  
  It's no coincidence that some frequent flyer cards offer miles when you transfer a balance – they want to tempt you to both spend on the card and shift debts to them. As you'll be unlikely to repay the balance in full every month, you'll end up paying the interest which will eat away any gain.
  
  However, if the card is offering 0% on balance transfers, you can use it to your advantage. Card providers must allocate repayments to the most expensive debt first, so as long as you fully repay the spending amount each month, you won't be charged interest. You must ensure you repay in full before the 0% ends.
  
  This can get complicated, so usually the best option is to use separate cards for earning miles and balance transfers (see the Balance Transfers article).