Rabu, 13 Juni 2012

Is American Express Premium Plus credit card worth taking for cheap flights to Europe?

Is American Express Premium Plus credit card worth taking for cheap flights to Europe?

By Daily Mail Reporter

PUBLISHED: 16:57 EST, 12 June 2012 | UPDATED: 05:43 EST, 13 June 2012

American Express is tempting credit card spenders to splash out thousands of pounds with its British Airways card in return for cheap flights to Europe.

However, the Premium Plus card comes with a bumper £150 annual fee and should only be considered by credit-worthy applicants able to pay back the high sums borrowed.

Those eligible will receive enough bonus points for two return flights to Rome

Those eligible will receive enough bonus points for two return flights to Rome

New customers who take out the card before midnight on August 1 will receive enough bonus points for two return flights to destinations including Rome, Berlin or Copenhagen, for £27 per person standard class.

However, the offer is subject to a £3,000 spend on the card within just three months.

And if a customer fails to pay this off, the cost for borrowing could be high.

The average annual rate for purchases is 19.9 per cent. With the fee included, the typical APR soars to an eye-watering 50.1 per cent.

This is despite the fact that a number of credit cards waive any interest owed on purchases for up to 18 months.

Kevin Mountford, head of banking at MoneySupermarket, says: ‘The interest charged could offset the benefits earned. ‘Customers need to weigh up the bonus miles against the high annual fee and make sure they can afford to repay the balance in full each month, as the card doesn’t offer any promotional rates on purchases or balance transfers.’

Experts also warn that credit card firms can ratchet up profits through ‘breakage’, which is when customers tot up points but never claim them.

- Do your own research with our credit card finder.


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