When it comes to rewards cards, simple is often welcome. And this offering from American Express allows you to collect one Avios for around every £1 you spend, in addition to ongoing member perks.
Representative example:
At an assumed credit limit of £1,200, at a purchase rate of 31.0% p.a. (variable), the representative APR is 31.0% (variable). Credit available subject to status.
Pros
- Simple reward structure
- No annual fee
- Welcome bonus
Cons
- Relatively high representative APR
- Charges apply for use overseas
- Restrictions apply to some benefits
Table of Contents
Key features
- Earn Avios points on your everyday spending
- Annual fee-free
- No 0% promotional periods
Charges
While there is no annual fee to pay for the American Express British Airways card, there is no promotional period on purchases – and balance transfers are not permitted.
New purchases made on this card will attract a representative annual interest rate (APR) of 31% (variable).
That said, you get up to 56 days’ interest-free on purchases. So, if you clear your balance in full – and on time – every month, you won’t be charged a penny in interest.
If you are late with your monthly repayment, you will face a £12 charge. There is also a returned payment fee of £12.
Rewards
With this card, working out rewards is simple, as you collect one Avios point for just about every £1 you spend. This is in addition to a welcome bonus of 5,000 Avios points if you spend £1,000 in the first three months.
If you redeem your Avios on an economy flight to Europe, one point is worth around 0.5p. Avios can be redeemed against part of the flight, or to upgrade to business or first class.
According to American Express, collecting 18,500 Avios could be enough to secure a flight within Europe for £1.
You’ll also get a Companion Voucher when you spend £12,000 each membership year on the Card, which you can use to either take a companion with you on the same flight and cabin or, if travelling solo, a 50% discount on the Avios price you pay for your flight. Vouchers are redeemable when you book a British Airways Reward flight in Euro Traveller and World Traveller cabins (economy class) only. Reward flights and Companion Voucher bookings are subject to availability and taxes, fees and carrier charges apply per person.
If you refer a friend who successfully gets approved for an American Express card, you can earn at least 4,000 bonus points. In a calendar year, you can earn up to 90,000 bonus Avios points. You can put these towards flights, upgrades or treats on board.
Protection
With the American Express British Airways Credit Card, you get ‘Purchase Protection.’ If an eligible item is stolen or accidentally damaged, you will be reimbursed £2,500. This applies for up to 90 days after the item was purchased. Bear in mind you will have to pay a £50 excess.
The card also offers ‘Refund Protection,’ so if you have trouble with a UK shop refunding your payment, you’ll get the price of eligible items refunded, up to £200, if you submit a claim within 90 days.
In addition, cardholders also have chargeback rights, as detailed in their Ts and Cs – but you should contact American Express directly to discuss.
Will I be eligible?
To be accepted for the American Express British Airways card, you’ll need a pretty good credit rating – and no history of bad debt. You will need to be aged at least 18.
Before formally applying, it can be helpful to use an eligibility checker tool. This will show the likelihood of you getting accepted, without leaving a mark on your credit file.
What are the pros?
- Generous introductory bonus
- Ongoing ability to earn Avios on everyday spend
- Opportunity to get a free companion ticket
- No annual fee
- Generous referral programme
- Additional cardholders can be added
- Access to 24/7 Global Assist emergency assistance service. Access to Travel Accident Insurance up to £75,000. Both are subject to enrolment
- Access to American Express Experiences such as tickets to film, theatre and music
What are the cons?
- No balance transfers
- No interest-free period on purchases
- Relatively high APR
- Rates you get offered may depend on your circumstances
- Charges will apply for use abroad
- Companion flights can now only be redeemed on economy flights
What more should I know?
You will not be eligible for a welcome bonus if you have held any American Express card in the past 24 months.
Exercise caution before making ATM withdrawals with this card as interest is charged with immediate effect.
With this card, as with any rewards card, be sure to clear your balance in full each month. If not, any rewards you earn could be outweighed by interest charges.
Is the card right for me?
If you’re looking for a generous airline credit card and plan on using this plastic for your everyday spending – especially in the early days to take advantage of the welcome bonus – this card could be ideal.
What you get is a decent Avios offering, a welcome bonus, a friend referral scheme – and the added extras that come with being an American Express cardholder – all with no upfront fee.
What are my alternatives?
As with any great deal, this card comes at a cost. In this case, the APR on purchases kicks in right away.
You may be able to find a card offering a lengthy 0% period on new purchases – and potentially also on balance transfers – athough the rewards on offer could be less generous.
Be sure to check out the other cards in the American Express stable, as you could, for example, find a card with a bigger welcome bonus and slightly higher rate of earnings point – but with an annual fee. Compare all options and weigh up the fee against the benefits and how you will use them before deciding.
