Today we have a Reader Question asking for advice on which American Express card he should get in order to be well equipped for regular travel, both domestically in the U.S. as well as overseas.
Readers are encouraged to send us questions, comments, or opinions by email, Facebook, Twitter, or Instagram. We’ll try to cover them here several times a week.
Choosing the right credit card for the frequent (and even more so infrequent) traveler is an important choice, as not every card benefit portfolio rewards you equally depending on your spending and travel profile.
When it comes to American Express (or any credit card really) one has to outweigh the annual fee plus the benefits a card confers overall and what you’re actually spending per year with said credit card.
Our reader Alex had exactly that concern:
I’m looking for a new credit card to add to my wallet, and after getting both the IHG Mastercard and Chase Sapphire Reserve, plus the Hyatt Visa, I set my eyes on American Express.
I used Amex many years ago with their Platinum Card, but cancelled it when Covid hit and haven’t had any Amex since.
Basically I just want one as a backup and to get additional benefits. Would you recommend any particular card?
I spend about 30-40k per year across all cards. I can’t pay my living expenses like rent and utilities on a card so that’s something I have to settle in cash (transfer/check).
His first “problem” is that apparently, he had the Platinum Card before, so that would render him ineligible for a new signup bonus, at least as per the language in the new marketing materials. I have heard from people who received one anyway,y but that’s something to consider right off the bat.
Secondly, the reader already has the Chase Sapphire Reserve plus the Hyatt Visa and IHG Mastercard. That’s already a decent setup aside the “issue” that it’s all issued from one single bank. I don’t like to have all my cards from one bank in case there is a problem such as a risk assessment during a financial crisis and the bank decides to lower your overall credit.
He wants an Amex, fine, so let’s have a look at what he could get. I wouldn’t recommend getting the Platinum right now due to the signup bonus limitations and the cost associated with the card. He also has many overlapping benefits with the Sapphire Reserve.
I would look into either:
- Green Card
- Gold Card
- Marriott Bonvoy Brilliant
- One of the Hilton Cards
His overall spend spread over the entire year is 40k max and honestly that is not a lot of money for four credit cards, let alone expensive ones. At least not without additional business expenses he can reimburse.
Even cards with a relatively high earning multiplier, like the CSR, would amount to much.
So the only real angle here is benefits or a possibly decent signup bonus. A hotel card would at least get him a good status, such as Marriott Platinum or Hilton Diamond, if he’s willing to spend money on another expensive card. And don’t forget the annual free night.
The one good thing about hotel cards at the ~ $100/year fee is that you always get that money back via the annual free night benefit. Even as a drawer card that you never actually swipe on the regular.
Conclusion
It’s hard to say what signup offers he currently qualifies for, as he didn’t include that information in the email, but I’d check for that first.
Additionally, I’d also consider the real benefit I get from the card and whether it “pays off” compared to the money invested in the annual fee.
My main concern: How much money (percentage wise) of his annual income is he investing into credit card fees? Even though there is some value flowing back, I always recommend looking at this with a more critical eye, as we often tend to kid ourselves when going down that rabbit hole. Assuming he doesn’t keep any balances on these cards, which would create further issues and throw the cost/benefit totally into limbo.
His Hyatt and IHG cards are both cheap “drawer cards,” so that’s not a main concern, and the Chase Sapphire Reserve has a very moderate fee, considering $300 out of the $550 is as good as cash. In my opinion, he has one slot open for a more premium card, such as Bonvoy Brilliant or the Hilton Aspire from Amex, if these hotel chains are attractive to him and the status can be utilized well.
