How much are air miles really worth?

Note! AirMiles has recently changed to Avios. We're currently updating this article, but in the meantime please be aware it contains information that is now out of date.

THE actual value of air miles is a murky business.

Points are accumulated in different ways and there are different rules on redeeming. They're hard to quantify and that makes them near-impossible to compare.

But comparing is our raison d'etre so we've been giving it a go for years. And here's the fruit of our accumulated wisdom: five ways to tell how much your air miles are worth.

1. Pound for pound

Our air mile credit card comparison tool translates your monthly spending into airmiles and works out how much those miles are worth in pounds and pence.

It's a simple way to see how the different schemes break down (we're pretty proud) but it's not the end of the story when it comes to worth.

2. What's worthwhile?

To get a return flight to Paris you'll need 9,000 BA miles but just 750 AirMiles.

But BA credit cards earn 1 or 1.5 points to the pound while the AirMiles collecting Lloyds TSB AirMiles Duo credit card earns a mile for every £10 (American Express card) and just a mile for £50 with its (Mastercard) [click through for cost of credit].

And, of course, you'll fly with BA in one case and any old airline in the latter.

3. Earning it right

Here are some of the currently available cards. Notice any similarities?

	0% Purchases	Rewards
Virgin Atlantic Black	Not offered	travel: flights, hotels, holidays and more	Apply » More »
Representative Example: 18.9% p.a. variable on purchases. This is equivalent to 47.2% APR representative variable based on a credit limit of £1,200 and including a £140 annual fee. Virgin Money, Discovery House, Whiting Road, Norwich, NR4 6EJ .
British Airways Premium Plus	Not offered	Avios miles	Apply » More »
Representative Example: 19.9% p.a. variable on purchases. This is equivalent to 50.1% APR representative variable based on a credit limit of £1,200 and including a £150 annual fee. American Express Services Europe Limited, Belgrave House, 76 Buckingham Palace Road, London, SW1W 9AX.
Lloyds TSB Premier Duo Avios	Not offered	Avios miles	Apply » More »
Representative Example: 13.95% p.a. variable on purchases. This is equivalent to 21.9% APR representative variable based on a credit limit of £1,200 and including a £50 annual fee. Lloyds TSB Bank plc, Registered Office: 25 Gresham Street, London, EC2V 7HN.

They're all tied in with one particular business. In effect, they're all about loyalty.

With British Airways credit cards [click through for cost of credit], for example, BA spending earns double points.

It's perfectly possible to earn with a branded card without being loyal though. The Lloyds TSB Airmiles Duo card below earns everywhere and has flights up for grabs from a range of airlines:

Lloyds TSB Duo Avios credit card
	Avios miles 1 Avios for each £1 / £5 spent	Apply here »
Representative Example: 15.94% p.a. variable on purchases. This is equivalent to 15.9% APR representative variable based on a credit limit of £1,200. Lloyds TSB Bank plc, Registered Office: 25 Gresham Street, London, EC2V 7HN.

4. Annual fee fear

Big spenders can earn the most with cards that offer more points to the pound. Many of these have annual fees but, for high earners, the rewards will outweigh the annual price. Check our reviews for spending thresholds.

5. More ways to earn

Everyone knows switching spending to the air miles credit card is the best way to make your air miles worth more.

But make sure you note the little tricks that make a big difference to earnings.

• Big bonuses: Big introductory points bonuses are up for grabs with many cards. In some cases this can mean a free flight within months.
• Balance transfers: Many cards now offer points in return for using their 0% balance transfer offers during the card's introductory period. It's a good option for those who are looking to pay back high-interest credit card debt elsewhere but it's no loophole to quick air miles - you'll have to pay a transfer fee.
• Supermarket spending: see our Tesco airmiles guide for more on how Tesco customers who hold a Lloyds TSB card could get flying further
• ALWAYS pay off in full: The golden rule of any reward credit card is to repay your spending in full and on time each month and to only use it the card for purchases. Cash advances (ATM withdrawals, buying foreign currency etc) are a definite no-no. There's no interest-free period so they'll just eat into your earnings.

Comments