Bank card factors appear more and more, nicely, pointless

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Are you a factors nerd? For those who’ve been ready eagerly since April for British Airways and American Specific to announce how frequent flyers can earn “tier factors” on bank card spending, then we are able to safely assume the reply is sure.

Even those that don’t compete within the peculiar sport of gaming airline loyalty schemes could recall the furore when BA introduced sweeping adjustments to its frequent flyer membership.

Because the guidelines modified in April, it has develop into more durable to attain gold, silver or bronze standing and entry perks like lounge entry, seat choice and precedence check-in. However this week, travellers holding the BA American Specific premium-plus card lastly came upon earn as much as 2,500 further “tier factors” to assist qualify — and turbulence has hit.

To get the total whack, £25,000 price of spending have to be pumped by bank cards within the subsequent seven months. At over £3,500 a month, that’s larger than the common UK gross wage.

Adjustments to this and different airline loyalty schemes mirror a wider erosion of advantages for UK shoppers — inflicting some to query whether or not there’s a lot level left to the nerdy obsession with accumulating factors.

Bank card rewards have been getting steadily worse because the UK capped costs for processing funds in 2015, proscribing a key income stream for card issuers. Because the unwritten rule of factors geekery is clearing your steadiness in full each month to keep away from curiosity costs, margins are tight so advantages are narrowing. John Lewis has simply introduced it would slash the worth of factors that holders of its widespread Partnership Card can earn on spending in different shops, prompting middle-class umbrage.

However that hasn’t deterred the UK’s most dedicated level collectors who’re doubling down of their quest to get one thing for nothing. “If you wish to get the advantages, it’s important to do the work,” says Tom, one in every of 400 frequent flyers attending the journey web site Head for Factors summer season celebration in London this week. Dubbed “Glastonbury for factors nerds”, the gang of Metropolis staff and retired {couples} feverishly swapped ideas and hacks, moaned about airways and card suppliers altering the foundations and boasted concerning the lengths they go to within the hunt for further factors.

One man satisfied his boyfriend that they need to do 5 layover flights on Christmas Day between London, Dublin, Brussels and (finally) the US with the intention to get sufficient tier factors to qualify for BA silver standing. “A enjoyable Christmas,” his associate grinned.

Many partygoers repeatedly fly lengthy haul for work, and use the rewards for pleasure. Lots had introduced their different halves (“he’s the factors man, I’m simply the beneficiary,” says one). As I learnt, referring your associate for a bank card can internet you each a bonus, and every get their spending factors. “I’ve skilled my spouse to all the time pay by card,” one boasted. One other made his spouse return £200 of John Lewis buying and re-buy the identical gadgets by way of the portal of a bank card buying web site to earn airline factors.

There have been simply as many conversations concerning the difficulties of spending the factors; those that unlock coveted 2-4-1 companion flight vouchers complain they’re having to ebook a lot earlier with the intention to truly use them.

Those that booked a BA vacation or spent massive sums on their BA Amex playing cards after April’s rule change are livid that time assortment won’t be backdated till then (BA has awarded everybody 500 further bonus factors as a substitute). This implies those that spend £25,000 simply to get bronze standing will in all probability nonetheless be one flight away from being entitled to free seat choice and precedence boarding, that means their cabin bag won’t ever be put within the maintain on a full flight. Is that actually definitely worth the effort?

The class of factors nerd often called “standing chasers” positively assume so. One man who has solely ever flown enterprise class applauded the BA rule change, believing it would make the first-class lounge much less crowded. Lengthy queues for airport lounges are a typical gripe, however there’s a hack for that — a “digital wait-list” for different lounges for chosen Amex cardholders.

“The underside line is, anybody who pays their bank card payments in full each month and will get nothing again ought to do one thing to get some form of reward,” says Rob Burgess, the ex-investment banker who based Head for Factors.

On the very least, he advises that cashback playing cards provide higher worth than most retailer schemes (round £70 again a yr on £1,000 of month-to-month bank card spending). Even with excessive annual charges, the advantages are price extra, reminiscent of journey insurance coverage and restaurant offers.

Fixed rule adjustments and tweaks to Ts & Cs will definitely give the nerds a lot to speak about, however sadly I worry the purpose of all of it is misplaced on me.

Claer Barrett is the FT’s shopper editor and writer of the FT’s Type Your Monetary Life Out publication sequence; claer.barrett@ft.com; Instagram and TikTok @ClaerB