When it comes to premium cards, users nowadays have a plethora of options. Although many of these premium cards have hefty annual costs, some cardholders may find that the features, rewards, and earning potential outweigh the annual price. So, before you sign up for a new card we are here to answer the question of if Amex cards are still worth it in 2022.
What Is Amex Credit Card?
Amex is an electronic payment card issued by American Express. It was founded by American Express, a publicly traded financial services firm (AXP). American Express is the company that issues the cards. They are also processed through the American Express network. Only a few organizations in the industry can both issue and process electronic payment cards, therefore this is quite rare.
American Express has its own network of processing centers. MasterCard (MA) and Visa (V) are now competitors. Discover Financial Services, on the other hand, is its main competitor (DFS). This is because Discover also provides credit card loans as well as a processing service network. American Express generates revenue from both providing credit cards and processing transaction services thanks to its multi-product capabilities.
Accepted in more than 130 countries, with more than 100 million vehicles.The American Express payment method is a secure and fast credit card payment mechanism that is accepted in over 130 countries and has over 100 million cards in circulation. Amex cardholders spend up to four times as much as Visa and Mastercard cards, according to the data. That is why American Express is one of the most popular payment options available.
Transaction processing accounts for the majority of American Express’s revenue. American Express cards are accepted by a large number of merchants all around the world. They must pay the transactional fee in order to do so. American Express charges merchants a per transaction fee for its processing network services, which is included in the total fees associated with a single transaction.
What Are The Benefits of Having An Amex Card?
With many credit cards, you may earn rewards for every purchase you make. With an American Express® Rewards Card, these benefits could include cashback, air miles, or reward points, which can be used for shopping, travel, and other unique experiences.
Cashback is a credit card feature that allows you to receive money back on purchases made with the card. It’s similar to receiving a modest refund on eligible purchases – a simple way to earn cash rewards for your everyday purchases, big and small.
When you use an American Express® Cashback Credit Card, you’ll get a percentage of your purchase back as a reward every time you use it. You can earn more cash back the more purchases you make. This builds up in your account and is paid to you as a statement credit once a year, around the anniversary of your account’s opening.
Also you’re in good hands with American Express, from account monitoring to online safety protection and fraud alerts, so you can buy with confidence. Purchase Protection is also available with American Express Cards for a period of 90 days. That means they will reimburse you up to £2,500 if your qualified item is stolen or accidently damaged within 90 days of purchase.
What Is The Cost Of An Amex Card?
Amex Cards vary in cost depending on the type of card and the perks that come with each. But typically, Amex cards range from $0 – $695 annual payments. For better context and understanding, we will be exploring different types of Amex cards, the benefits that come with them and their cost, then we will answer the question if Amex cards are still worth it in 2022.
Types of Amex Cards
#1. American Express Blue Cash Everyday Card:
If you want a card that gives you cash back on a variety of everyday purchases but don’t want to pay an annual fee, the American Express Blue Cash Everyday Card is a smart choice.
Rewards include 3% cash back at US supermarkets (on purchases up to $6,000 per year, then 1%), 2% cash back at US gas stations and select US department stores, and 1% cash back on all other purchases. Reward Dollars are a form of cash back that may be redeemed for statement credits in a matter of minutes. Its yearly fee is $0.
#2. The Blue Cash Everyday Card:
The Blue Cash Everyday Card from American Express is a good option if you want a card that offers cash back in a variety of everyday categories but don’t want to pay an annual fee.
Rewards include 3% cash back at U.S. supermarkets (on purchases up to $6,000 a year, then 1%), 2% cash back at U.S. gas stations and select U.S. department shops, and 1% cash back on all other purchases. Reward Dollars are a type of cash back that can be quickly redeemed for statement credits. Its fee is $0 per year.
#3. The American Express Blue Cash Preferred Card:
The American Express Blue Cash Preferred Card allows cardholders to earn up to 6% cash back at U.S. supermarkets and select U.S. streaming services. In these areas, this is one of the finest rates available.
Rewards include 6% cash back on up to $6,000 in purchases per year at U.S. supermarkets (then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back at U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses, and more), and 1% cash back on other eligible purchases.
Reward Dollars are a type of cash back that may be redeemed for a statement credit. Its annual fee is $0 for the first year, then $95 every year after that.
#4. The Delta SkyMiles Gold American Express Card:
The Delta SkyMiles Gold American Express Card outperforms the competition in terms of value. It provides in-flight perks like a free checked bag and priority boarding while maintaining a cheap annual charge. You can earn SkyMiles on almost everything you eat and drink, which might help you quickly build up your balance.
The generous welcome bonus just adds to the allure of the deal. 2 miles per dollar spent on Delta purchases, restaurants worldwide (including takeout and delivery), and supermarkets in the United States.
On all other qualified purchases, you’ll earn one mile for every dollar spent. For the first year, there is no fee; after that, the annual fee is $99.
#5. Marriott Bonvoy BusinessTM American Express Card:
The Marriott Bonvoy BusinessTM American Express Card provides generous rewards on Marriott purchases as well as excellent earnings in areas where small businesses are likely to spend. That could be well worth the card’s yearly charge of $125.
Benefits include 6 points per dollar spent at Marriott BonvoyTM hotels, 4 points per dollar spent at U.S. restaurants, 4 points per dollar spent at U.S. gas stations, 4 points per dollar spent on wireless telephone services purchased directly from U.S. service providers, and 2 points per dollar spent on all other eligible purchases.
#6. American Express Gold Card:
For most travelers, the American Express Gold Card is a good choice. Restaurants and supermarkets in the United States have some of the highest compensation rates in the business.
The card earns Membership Rewards points, which can be redeemed in a variety of ways. Rewards include earn 4 Membership Rewards points per dollar spent at restaurants, including takeout and delivery, and 4 Membership Rewards points per dollar spent at U.S. supermarkets (on purchases of up to $25,000 per calendar year, then 1 point per dollar), and 3 Membership Rewards points per dollar spent on flights booked directly with airlines or through American Express travel.
Every dollar spent on other eligible items earns you one point. Its fee is $250 per year.
#7. American Express Business Gold Card:
The American Express Business Gold Card helps you get the most out of your regular spending by giving you bonus points in the two categories where you spend the most each month.
This can be a godsend for individuals who don’t want to fiddle with various cards in order to get the best deal. Rewards include the business earns 4 Membership Rewards® points for every dollar spent in the two categories where it spends the most each month.
Other purchases earn 1 point per dollar spent. Every calendar year, the 4 point per dollar earning rate applies to the first $150,000 in combined purchases from the two eligible categories. Its fee is$295 for the year.
#8. American Express’s Platinum Card:
No other credit card offers as many benefits as American Express’s Platinum Card. This card merits a spot in your wallet if you travel frequently and want to do so in elegance.
It may be difficult to justify the $695 annual cost for someone who does not fit a specific profile—for example, an urban fitness buff who wants high rewards on flights and prepaid accommodations.
5 Membership Rewards points per dollar on flights booked directly with airlines or through American Express Travel on purchases up to $500,000 per calendar year, 5 Membership Rewards points per dollar on prepaid hotels booked through American Express Travel on purchases up to $500,000 per calendar year, and 1 point per dollar on all other eligible purchases. It costs $695 per year.
Conclusion
Owing to the high number of competitions American Express now has, she is constantly on her feet to increase benefits for cardholders so she can stay in the market.
For this reason she keeps on increasing the perks that come with her cards. Amex cards are still worth it in 2022 and except one is not interested in the exclusive experience, the annual fees are still commensurate.
Frequently Asked Questions
Depending on the card you choose, annual fees range from $0 to $695. In general, the higher the annual cost, the more perks supplied.
On their website, you can apply for an American Express card. You might also ask a friend or family member for a recommendation.
If you receive a referral, you may be eligible for a bonus from the person who referred you. Finally, you may receive targeted marketing for an American Express card by email or snail mail, which may come with more favorable terms.
Although American Express has not explicitly stated a limit on the number of credit cards a person can have, some sources indicate that an individual is normally limited to four or five American Express credit cards. This limit is not thought to apply to charge cards.
FICO credit scores of fair to outstanding are normally recommended by American Express. A score in the “good” range of 670 to 739 may be sufficient for a basic American Express card, but for the strongest rewards cards you can expect to need a score of 740 or higher to qualify
There is no American Express card designed exclusively for persons with bad or limited credit. If you have a low credit score, your best bet is to apply for one of the no annual charge cards with limited advantages, such as the Amex EveryDay Credit Card or the American Express Cash Magnet Card.
References
- americanexpress.com/us/credit-cards/
- ikajo.com/payment-methods/what-is-american-express
- forbes.com/advisor/credit-cards/best/american-express/
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