Loyalty Points Boosting Boost Tesco, Airmiles etc up to 8x

It's possible to boost the value of your loyalty points by up to eight times without spending a penny.

This guide's jammed with detailed tips and tricks for Tesco Clubcard, Nectar, Airmiles, Boots Advantage and more, including the unique Loyalty Checker tool to assess the value of your points stash.

When loyalty pays

Loyalty is a consumer disease. Retailers utilise every tactic possible to keep us shopping in their stores without checking out the competition and reward new customers over existing ones.

Their prime weapon is loyalty cards, allowing you to collect points in specific shops when you spend - usually requiring you to return there to redeem them. While credit or store card reward schemes work in a similar way, the distinction is loyalty cards don't allow you to pay with them (except when redeeming points).

When to use loyalty schemes

Never feel the shop's giving you something for nothing, as schemes are incorporated into pricing policies. To evaluate the overall cost, consider loyalty points gained like a discount. The difficulty is their value is often deliberately misted, so use the Loyalty Checker to reveal the real value of each point.

This story should help...

Yet of course it's not practical to weigh up every single product's overall price, therefore the golden rule is ...

Never choose where you shop due to loyalty schemes, yet always use it if you shop somewhere with one.

Though don't think 'points are better than cash'; after all, you can't spend them in nearly as many places.

Watch for the vicious circle of loyalty

Many in-store promotions now deliberately give discounts as extra points rather than money off. This is very clever, because while �1 of points feels like a one pound discount, of course it only costs the store what it paid its suppliers, not the full retail price.

Add to that the fact it ensures you must return to that store to spend the points. When you do, it's likely you spend again, earning more points, requiring you to return yet again to redeem them; earning more points, requiring you to return again...

Loyalty Credit Cards... beware the spin

Most of the big loyalty points have a credit card too. Here you don't just accumulate points on spending in a specific chain, but on all spending.

This can be a boon, provided you repay in full each month, so there's no interest. Yet always check the actual gain from using the credit card rather than just a loyalty card, then compare this to what you could earn on the Top Cashback Credit Card or other Credit Card Reward Schemes.

Watch the multi-earn argument

You need to be careful here, as promotional leaflets for many credit card schemes use a neat double-counting trick. Take this example from the Tesco Clubcard* credit card website:

While the marketing intimates using this card in Tesco is a hefty boost, it's not. Its normal loyalty card pays eight points per �4 anyway, so the credit card only adds one extra point. Put another way, you gain a quarter of a point per pound spent. It's this amount you should compare to Top Cashback Cards.

Boost your loyalty points

Every loyalty scheme has its quirks and can be manipulated. There are two obvious routes: first, try to earn more points for the same spending; next, try to beat the average point's value on whatever you redeem. To help here are scheme-by-scheme point-maximising tips.

Tesco Clubcard Point Boosting

You accumulate Tesco points at a rate of one per pound spent. You earn them in-store at Tesco, or via its partners such as Eon.

Each point is worth a penny if used for in-store shopping, and they're sent out in vouchers (minimum �1) every three months.

• Clubcard Rewards. Triple or quadruple points value when redeemed elsewhere

  This is the powerhouse of the Tesco points boosting method. Trade in normal vouchers for Tesco's special Clubcard Rewards vouchers, and each �5 voucher becomes worth �15 or �20 to use on a non-Tesco item or service.

  Clubcard Rewards include train tickets, days out, magazine subscriptions such as Cosmo, travel including Virgin hols, gifts, hotel rooms and more. Among the options are an �18 RAC membership (see Breakdown Rewards), a Cineworld ticket for �4 in points, or a year's Merlin theme parks pass for �42.50.

  The list price of goods in the brochure is sometimes higher than the market price, so you may not always get 3x or 4x value. Yet if you're exchanging to buy something you would've bought anyway, it is a great deal.
  

• Tesco Credit Card. An additional 1 point per �4 spend

  The Tesco Credit Card* pays you 1 point per �4 you spend, which if redeemed in store at Tesco is a rather paltry 0.25% return on spending. Trade them in for Clubcard Rewards and it becomes a more respectable 0.75% or 1%.

Ordinarily, you should repay IN FULL every month to avoid interest. However, Tesco offers 15 months' 0% on new spending - the longest available. This means you could do ALL normal spending on it to rack up the points, stashing away the cash you'd normally spend, then pay it off in full after 15 months. More info in the 0% Cards and Stoozing guides.

Compared with the top cashback card, which pays up to 5% cashback initially (see Top Cashback Cards), this is weak. Following the 0% period, if you don't pay the Tesco card off in full, you'll pay 16.9% representative APR.

• Join Tesco's Clubs Mailing list. It sends special extra points vouchers

  If you join one of Tesco's clubs, such as wine, food, baby or healthy living (see full list) you'll get vouchers in its emails to earn extra points when buying relevant products.

• Extra clubcard points. Can lead to Tesco paying you to shop

  Look out for any Tesco promotions offering extra clubcard points, as these can open up loopholes where it's worth buying the goods even if you don't want them.

  The best examples are the famous Beef In Gravy & Johnsons baby powder loopholes which originated on this site and ended up in all the papers. They worked like this:

  When you bought any two Johnsons products, you got 100 extra points. The cheapest item was baby powder, at 76p; this meant you could therefore spent �1.52 to get 101 points, worth �4.04 of Clubcard deals vouchers, making more than �2.50 PROFIT

  With the similar beef in gravy episode, one MoneySaver bought a few hundred pounds' worth, donated it to a homeless shelter and used the points for a return trip for two to New Zealand. Though do be slightly careful, as Tesco reserves the right to block people for fair usage breaches. All major loopholes will go in the free weekly email.

  Even if you can't make a profit, the bonuses can lead to serious discounts. For instance, Tesco once sold iPod Shuffles for �49 - a good price, and it gave 999 bonus points on top of the usual points. These were worth �42 of Clubcard Deals, meaning the iPod effectively cost �7.

  Though do bear in mind that Tesco has since cut the amount of Rewards you can grab in exchange for your vouchers from 4x to 3x.

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Tesco Clubcard Boosting Discussion

Nectar Points Boosting

Use a Nectar card in Sainsbury, BP, Debenhams, Amazon, Expedia and others (see full list) and every �1 spent usually gains 2 points.

Points are worth an average 0.5p and can be redeemed online or by phone for a range of days out, gifts or shopping discounts off member stores.

• Pick the right redemptions.
  Boost what points are worth

  The start point for Nectar is to remember a point when spent in store at Sainsbury is worth 0.5p, yet many of its redemptions work out at better value than this. Therefore when picking you can calculate to see if you're getting a good deal.

• Thomson Local. Earn 50 points each time you use it, up to a maximum of 20 times/year

  A Thomson Local promotion means if you ring a business via the Thomson local directory or website and it has a Nectar symbol by it, you can get 50 points (worth c. 25p).

  You can do it up to a maximum 250 points per week, 1,000 points a year. Register your card, dial the business via Thomsons 0845 number (part of BT's free calls allowance at weekends) and you get the points.
  
  If you call the same business within 7 days you'll only get the points once.

• Surveys. Answer a few questions for points

  Nectar periodically runs surveys or questionnaires which let you gain 50 points or more from spending a couple of minutes filling them in (also see the Survey Sites guide showing you how to make cash doing this).

• The Nectar Credit Card. Earn more wherever you spend

  If you're an avid Nectar collector, then you can earn more points by using the Nectar American Express* credit card, but always pay it off in full each month or you'll be charged 19.9% representative APR interest which dwarfs any points gain.

  In non-Nectar stores it gives 1 point (worth c. 0.5p) per pound spent, in some Nectar stores (e.g. Sainsbury) you get 2 points, on top of the 2 points you get for using your loyalty card (so 4 points in all). Plus spend �500+ in the first three months and you get an additional 5000 points (worth c. �25).

  It also gives 5,000 bonus points (worth c.�25) when you spend �500 in the first three months of account opening.

  Overall this puts it up as a decent alternative to the top paying Cashback Card, provided there's something you want from the Nectar catalogue.

• Beware Nectar Awards. Often you can get more in cash

  Nectar is a very wide ranging scheme and tends to offer a variety of different deals paid in points. For example, you can gain points for selling/recycling your old mobile phone with it, yet always evaluate the points' cash value (see the LoyaltyChecker) and compare that with available cash equivalents (use the MobileValuer tool to see if it's worth it).

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Nectar Points Boosting Discussion

Boots Advantage Card Points Boosting

Use the Boots Advantage card in-store/online, except for infant's milk, prescriptions, stamps and gift vouchers and you earn 4 points per pound.

Each point is worth 1p and can be redeemed on most things instore.

• Use the Boots ATM.
  Hidden extra discounts and coupons

  Many, mainly larger, branches have what looks like a cash machine called an 'Extra offers kiosk'. Stick your card in it before shopping and it lists immediately printable discount vouchers, for specific products or general discounts.

  This is especially important if you're spending big, as sometimes there's a voucher giving lots of extra points on spending of �30+ or �50+. At one point it randomly allocated a bonus 1,000 points, worth �10 in-store, to 200,000 Advantage card holders.

  Find your nearest Boots Extra offers kiosk.

• Mega Points Weekends. Hold off on big purchases if you can

  Boots sometimes has 'mega weekends', either online or in-store where if you spend �50, you get 1,000 extra points (worth �10). When one hits it's worth collecting together everything you were planning to buy in Boots to grab the excess.

  Or if you're doing a really big shop, split what you're buying into �50 units, as there's usually no limit on how many extra points bonuses you can get. Where possible, Megapoints weekends or similar promotions are included in the free weekly MoneySaving email.

• Check the Advantage card magazine. It often contains free points incentives

  Always look in the in-store Advantage magazine for points coupons. For example it sometimes gives 500 points (�5 worth) for people who join the prescription collection service.

• Join Boots Clubs. Extra or double points on specific items

  Both the Boots Parenting Club and Healthclub For Over 60s send mailouts or give special offers for relevant goods, allowing you to get discounts and earn more points. The parenting club also gives 10 points for every �1 spent on baby products.

• Don't lose online points. Fail to register in store and you lose them

  Spend at Boots.com, and you must 'collect' your Advantage Card points from one of the Boots ATMs (Extra offers kiosks) within six months or you'll lose them. Points are ready for collection five days after you spend.

• Beware Boots Awards. Often you can get more in cash

  Boots is a very wide ranging scheme and tends to offer a variety of different deals paid in points. For example you can gain points for selling/recycling your old mobile phone with it, yet always evaluate the cash value of the points (see the LoyaltyChecker) to compare that with the cash equivalents that are available (See MobileValuer.com) to see if it's worth it.

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Boots Advantage Card Boosting Discussion

Airmiles Boosting

Airmiles can be earned on spending in a variety of places inc. Shell, Tesco, Ebay.co.uk and by using a special Lloyds TSB credit card.

Don't confuse it with frequent flyer schemes, as you don't actually earn points for travelling, though many of its rewards are travel-based.

• Airmiles are worth 8.5p. They're more valuable than other schemes

  We've calculated an Airmile to be worth around 8.5p on average, much more than any of the other major schemes' points. But as that's an average, they will be worth a lot more to some than others, depending on what reward (such as a flight) you choose.

• Get a free BA European return. Airmiles credit card freebie

  With Lloyds Airmiles Duo you get both an Amex & Mastercard. Until 31 August 2011 apply via Airmiles* website and when you spend �10 within the first 30 days on the Amex you'll get 500 Airmiles. Pay the card off in full to avoid 15.9% representative APR. See the Credit Card Freebies guide for more info.

  You can also continue earning Airmiles on spending afterwards, but always pay off in full so there's no interest. You're actually given two cards; a Mastercard and an Amex, both earn points when you spend, though not the same amount. The Amex gives 1 Airmile per �10 spent, but the Mastercard, which is really just a backup should Amex not be accepted, only gives 1 Airmile per �50 spent.

• Don't lose your Airmiles. They expire after 2 years.

  If you don't earn an Airmile within two years, you lose all your miles.

  And if you don't earn an Airmile in any 12-month period, you may need to pay �30 before spending them.

  To combat either rule, the easiest way is buy a little petrol at Shell, or convert a Tesco voucher to earn something. If you're worried about your miles expiring, call Airmiles customer services on 0844 49 333 32.

• Tesco Credit Card v Airmiles Card. Which is best?

  There are three credit cards which pay out in Airmiles; the two Lloyds TSB Airmiles card and the Tesco credit card where points earned can be converted.

  Only use a credit card this way if you repay in full each month, so there's no interest, otherwise its cost dwarfs any reward.

Think before adding credit card 'insurance'

Payment protection insurance is commonly sold with credit cards - the idea is it'll make some payments for you, usually for a year, if you're unable to (eg, if you lose your job).

There have been a myriad of cases where it has been missold eg, borrowers didn't realise they were signing up for it, or it was totally unsuitable for them, and some big lenders have been fined.

The protection isn't always bad, though policies sold with cards are often overpriced (you pay a monthly amount depending on the size of your balance). If you want it, compare the lender's cover with standalone providers such as Paymentcare or Best Insurance.

Always carefully check you aren't getting more than you bargained for when you fill in the application, then check your statement each month to ensure you're not inadvertently paying for extras if you didn't ask for them.

Airmiles earned on �1,000 spending

	Representative APR	Tesco Points Earned	Airmiles Earned	Airmiles Value
Lloyds TSB Airmiles Amex*	15.9%	n/a	100	�8.65
Tesco Credit Card*	16.9%	250	50 (i)	�4.30
Lloyds TSB Airmiles Mastercard*	15.9%	n/a	20	�1.70
Always pay off in full each month so no interest is charged. (i) Assumes 250 Clubcard points are converted to Airmiles. Correct: October 2010

Lloyds Airmiles Amex is therefore the best payer, yet as Amex isn't always accepted, the Tesco card is the best backup (though do watch your Credit Score if you're applying for lots of cards).

• Flights aren't the best return. Days out prove better

  On a pure mathematical calculation, after valuing the point's worth, using AirMiles for 'experiences' such as a Merlin annual pass (valid at Chessington, Legoland and Alton Towers), proves better value than flights and car hire.

  However 2for1 vouchers are often available to these places (see the Days Out Vouchers daily list) and if there are you can't use AirMiles so you're better off avoiding it.

• Buy paper based voucher on eBay? It's not lawful

  Old paper-based AirMiles are commonly flogged on eBay* and, while it's cost effective, AirMiles says this breaches its terms and is unlawful.

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Airmiles Boosting Discussion

Points boosting for other schemes

For all schemes, the key to maximising value is to choose the best value redemptions. The LoyaltyChecker tool can help you do this for over 40 different schemes.

• Pick the redemptions you're interested in.

  E.g. at the time of writing from the Sony Pulse Scheme a Blu-Ray of Casino Royale is 2,000 points and a 2GB Walkman MP3 player is 6,200.

• Value the points.

  Now use the Loyalty checker to see what the value of those points is. Here 2,000 points is worth �9.20 and 6,600 is worth �29.
  

• Check the cost to buy.

  See how much you'd pay for the goods if bought, a quick way is to use the MegaShopBot. In this case, while Casino Royale has a recommended retail price of �24, it's available for �8.93. The Sony Walkman is available for �16.99

• Choose the best value redemption.

  Pick the one that's the best use of points. Here while the Blu-Ray costs �9.20 in points and about the same in the shops, the Walkman costs �29 in points but can be bought for half that in cash. Therefore the Blu-ray is a much better use of points.

Value your loyalty points

Which is better: 5,000 Nectar points or 1,000 AirMiles? Loyalty points or miles are awarded for flight booking, credit card spending, shopping and much more, but it's deliberately made difficult to evaluate most schemes to promote a feel good factor not reflected by their true worth.

The LoyaltyChecker tool gives you a quick assessment of your current stash of over 40 schemes, based on points' average not boosted value.

Loyalty Points Compared

Scheme	Points Value	Scheme	Points Value
Airmiles	8.65p	Nectar Points	0.5p
BA Miles	0.68p	Tesco Clubcard Points	In store 1p
Boots Advantage Points	1p	WH Smith	1p
For info on the valuation scheme used see the Loyalty Checker