If you’re like me, you have a credit card for each facet of your annual budget because the value is just too good to pass up. That said, for many of my accounts, the physical cards themselves have been locked in the safe for years since they are simply on record with my merchant of choice. That’s because when it comes to what cards you carry with you in your wallet each day, it is important to keep it simple. So today, I’m here to tell you why two, yes two, premium credit cards may be the perfect arsenal for your daily spending: The AMEX Power Couple – Gold and Platinum cards.
Costs Incurred
Let’s get this out of the way because it is the hardest to stomach. The annual fee on the Gold card is $250; the Platinum is $550. Yes, that’s $800 in annual fees. But keep reading: There are three reasons this annual cost is well compensated:
- Statement Credits
- Earnings on Spend
- Benefits
Let’s get to it.
Statement Credits
The Platinum Card grants you Uber VIP status and $200 annually in Uber credits that can be used in the United States. The credits are issued $15 per month with an additional $20 credited each December for a total of $35. Whether you utilize rideshare apps to get to the airport, or home after a night with friends, the credit can supplement your budget and become cash back in your savings. If you don’t use rideshare, you can alternatively use the credits to order from the Uber Eats food delivery service.
A newer benefit offered by the Platinum Card is the $100 in statement credits annually for purchases at Saks Fifth Avenue (including the online store). Issued semiannually in $50 increments, these statement credits are applied to any purchase you make with Saks. Though their prices are generally higher, there are deals to be found both in clearance as well as within the fragrance department that allow you to purchase something without exceeding the $50 statement credit.
The Gold Card offers $120 in annual dining credits ($10/month) when you use your Gold card to pay for meals with Grubhub, Seamless, The Cheesecake Factory, Ruth’s Chris Steak House and participating Shake Shack locations. Personally, I find that Grubhub is the easiest way to redeem this benefit since one meal delivery a month is a nice benefit to commit to; they are also one of the only delivery services that do not charge delivery fees!
Both cards offer an annual Airline Fee Credit as well. After selecting one qualifying airline, you receive up to $100 per calendar year in statement credits when incidental fees, such as baggage fees and more, are charged by the airline to your Gold Card; you receive $200 per year on incidental fees charged to your Platinum Card. That’s a total of $300 per year that can be used on seat upgrades, baggage fees, lounge memberships and change fees!
Earnings on Spend
The average value of an American Express Point is two cents ($0.02) per point. So for the purposes of the assessment below, 1X points = 2% back; 4X points = 8% back; etc.
The Gold Card offers an astounding 8% back at restaurants worldwide and US supermarkets (up to $25,000).
The Platinum Card is worth its weight in airline purchases: 10% back. In the form of 5X points, this is my favorite earning reward because it can be used on ANY airline rather than the branded credit cards that require loyalty. So not only can you shop around for the best fare, you can take 10% off of that once you find it. Brilliant!
Both cards earn 2% back on all other purchases in the form of 1X points.
Benefits
The Platinum Card offers:
- A Fee Credit for Global Entry or TSA Precheck. So whether you have been holding out until now, or your renewal is coming up soon, the fee credit will take care of that $85-100 expense.
- A Priority Pass Lounge Membership which gives you access to 1,000+ lounges across 500+ airports in 120 countries.
- Gold Status with Hilton Honors
- Gold Status with Marriott Bonvoy
- Secondary Car Rental Loss & Damage Insurance
Both cards offer:
- No Foreign Transaction Fees: Travel abroad without incurring the 3% fee other card issuers charge when the card is used internationally.
- Purchase Protection: Your eligible purchases can be covered when they’re accidentally damaged, stolen, or lost for up to 120 days from the date of purchase with your Card.
- Extended Warranty: Can extend the original manufacturer’s warranty for up to two extra years for eligible purchases made on your Card.
- Free ShopRunner Account: This membership allows you to receive free 2-day shipping and returns at 140+ stores online.
- Premium Roadside Assistance: Not only will they cover eligible breakdowns and mishaps, American Express will coordinate response in your time of need!
- Baggage Insurance: Provides coverage for lost, stolen or damaged baggage when traveling on a Common Carrier when the entire fare has been charged to your Card.
Bottom Line
When looking at what a card actually costs you, we will take the annual statement credits from the annual fees and associate the remaining cost with the earnings on spend for their respective categories:
- The Gold Card has a $250 annual fee offset by a $120 annual dining credit and a $100 annual airline fee credit leaving $30 remaining. You will earn $30 in rewards after $375 in annual spend ($31.25/month) on dining and groceries with the 8% back in those categories.
- The Platinum Card has a $550 annual fee offset by a $200 Uber credit, a $200 annual airline fee credit and $100 in annual credits when you shop at Saks, leaving $50 remaining. You will earn $50 in rewards after $500 in annual spend on airfare with the 10% back in that category.
For arguments’ sake, even if you never spend enough to reclaim the $30 (Gold) and $50 (Platinum) remainders, holding the two cards only costs you a total of $80 annually and in return, you receive all of the benefits listed above.
Sign-Up Bonuses
Though the sign-up offers vary based on timing and your specific account, the acquisition of both of these cards would net you a minimum of 100,000 points worth $2,000 in travel rewards. For this reason, I always tell folks who are on the fence about whether or not they would get enough from the cards to justify the annual fees, that the first year is a no-risk trial with the sign-up bonus considered!
Referrals
My blog content is provided free of charge. If you decide to apply for one or both of these cards, please consider using my referral links below and we will both receive a reward from American Express! Thanks for reading!
