Two of the largest credit card providers in the UK, high street bank Lloyds TSB and global credit card giant American Express, have joined forces to offer customers a new premium plastic product.

The card carries a monthly fee for use, but offers several benefits including reward points that are awarded for spending on luxury items.

A basic fee of £4.95 is payable, although many customers may be tempted to opt for the higher £8.95 Prioirty Pass fee, which secures holders access to airport lounges across the world.

Although the savings on offer could be substantial (the airport lounge access alone could save frequent fliers around £150), the head of credit cards at Moneysupermarket.com, Robert Kenley, has warned that customers need to utilise all the benefits available to make the monthly fee worthwhile.

“The card does not make the grade as a fully-fledged prestige card and therefore the fees are set towards the cheaper end of the market,” Mr Kenley noted.

“Instead, it is a hybrid card, giving customers access to a concierge service as well as reward points to be redeemed on ‘luxury’ spending.

“Combined, these benefits are worth the fee, but only if customers use their card wisely, gaining loyalty points wherever possible and making full use of all the extras.”

Mr Kenley also urged customers taking up the card not to use the account for borrowing due to the relatively high rates of interest on purchases.

To read more about credit cards, click here.

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