Cheap flights to Europe are being offered to tempt American Express customers to spend thousands of pounds on their British Airways card. The Premium Plus card, however has an annual fee of £150, so you should only consider it if you are able to pay the money back when your statement comes in.
New clients signing up for the card before midnight on 1st August will get enough bonus points for two people to have return standard class flights to several European cities for £27 per person. The offer however is subject to clients spending £3,000 within the first three months of having the card.
The cost of borrowing on the card is high if the customer does not pay the money off, with the average yearly rate for purchases 19.9%. The APR climbs to 50.1% when the fee is taken into account. This seems incredulous when you think that some credit cards waive interest owed for up to 18 months.
Head of banking at MoneySupermarket, Kevin Mountford, is reported to have said that the benefits earned could be offset by the interest charged, and that customers should weigh the bonus miles up before committing.
Because of the high interest rate the full balance should be paid each month – there are no promotional rates on either balance transfers or purchases. Experts warn that the credit card companies make very high profits when clients do not claim points that they have earned through using the card.