There has been a lot of hoopla about the the new American Express Gold Card. Here are my thoughts on the new card.
First, let’s review the benefits. On the spending side, you’ll see a nice return on purchases at restaurants and supermarkets:
- 4x Membership Rewards points at U.S. restaurants
- 4x Membership Rewards points at U.S. supermarkets, on up to $25,000 in purchases annually (1x after)
- 3x Membership Rewards points on flights booked directly with airlines or through amextravel.com
- 1x Membership Rewards points on all other purchases
The 3x travel was already offered and matches the Chase Sapphire Reserve.
The annual fee jumps from $195 to $250, but includes a new $120 dining credit.
- $100 annual airline fee credit
- $10/month dining credit
- Valid at Grubhub, Seamless, The Cheesecake Factory, Ruth’s Chris Steak House, and Shake Shack (non sports stadium locations)
Amex is also offering limited-time rebate on “tipping” for the first three months you hold the card:
- Receive 20% back as a statement credit at U.S. Restaurants with the Gold Card within the first 3 months of your Card Membership, up to $100 back
Note that many have received a targeted 50,000 mile sign-up bonus (the public offer is 25,000). There are no foreign transaction fees on this card.
My Thoughts On the Card
I like the supermarket bonus quite a bit. While I go out to lunch most days, I eat at home every night and on weekends. I’ve taken up cooking…it has been a fun new challenge. My wife, son, and I consume a lot of groceries. My wife also likes organic meat, milk, and produce. Thus, the grocery bill adds up each month. Currently we use the AMEX Blue Business Plus card for groceries, which earns 2x Membership Rewards points per dollar. It would be nice to earn quadruple the points.
I have no problem using the $100 airline credit on United each year for wi-fi purchases…that’s like a $100 discount off the annual fee. But the dining credit…I’m not about to start visiting Ruth’s Chris or the Cheesecake Factory once a month just to save $10. I actually love Shake Shack, but do I really want to be incentivized to eat that once per month? I suppose I could use the Grubhub credit, but I would have to adjust my current eating patterns.
I’ll still use either the Chase Sapphire Reserve (3 points per dollar) or AMEX Platinum (5 points per dollar) for airfare purchases, so the 3x benefit does not entice me.
My Strategy: First Chase INK, Then AMEX Business Platinum
As my business spending continues to rise, I see greater value in obtaining business cards before this card. I’m one under 5/24 and want to get a Chase INK card first. Next, I’d like to get and AMEX Business Platinum card, that earns 1.5X points on purchases over $5,000. I currently have the AMEX Gold Business Card which I rarely use because foreign transaction fees are not waived. I’ve never applied for the AMEX Gold (personal) Card before, so I should be eligible for the bonus when the time comes.
I’m taking a different strategy for my wife Heidi. As you may know, we moved to the USA together about four years ago. I have not taken as much time as I should to carefully build her credit, but am doing so now. She does not qualify for the Chase Sapphire Preferred yet, but I am going to try apply for the American Express Gold Card on her behalf. Since she does most of the grocery shopping anyway, it would be helpful to have that card in her wallet.
She had been using a Starwood Preferred Guest card for these purchases, but we’ve stopped using that since that Marriott merger and she’s now an authorized user of my Chase Sapphire Preferred card.
CONCLUSION
Ultimately, my calculation is this: let’s say the effective annual fee is $150, since I will easily use the $100 in airline credit. I spend $1,000/month on groceries and will go from earning 24,000 points per year to 48,000 points per year on groceries. That is well worth the $150, wouldn’t you say?
Good luck getting the bonus, the RAT gem is out in force. I was denied the bonus even after getting the Biz Gold recently and had only applied for one othe AMEX in two years. And I had chat evidence showing I confirmed I never had the card before. Unsympathetic RAT bastards.
Interesting. We’ll see.
Why do you have CSR and CSP?
I generally don’t cancel credit cards and the CSR has free authorized users.
Seems silly, but whatever
But the CSR does charge for authorized users.
Why not transfer the credit limit from your CSP to CSR so there won’t be a dip in your available credit.
The CSR charges $75 for a second user.
It made more sense for my wife and I to each get own CSR during the introductory 100,000 bonus offer.
My cost $400 less $300 travel credit. Net $150.
Wife same. Net $150
Total. Net $300
As an authorized user. 450 + $75. Less $300 credit. Net $225.
For an extra $75 you each get the intro bonus and each get the free 5 year TSE security bypass, worth $150.
But my German wife had not built sufficient credit history to qualify for this card.
I went ahead and got the card for pretty much the same reasons. I spend more than enough on groceries in a year, and as an airline free agent, I can get full value from the airline fee credit.
The dining credit is pretty much useless, though. I really hate that Amex makes these benefits so gimmicky to actually use.
How is the dining credit useless? I already got it after ordering Chinese food on grubhub which I do twice a week. Are you really telling me you don’t order pizza, Chinese or from a diner at least once a month?
Ok, so maybe “useless” is hyperbole. It’s still unnecessarily complicated, as it’s something I’m going to have to actively remember to use every month. And maybe your area is different, but Grubhub availability is pretty limited where we live. Several of the restaurants my wife and I frequent don’t even participate.
It just really irks me that unlike its competitors, Amex seems to design its benefits to maximize breakage.
Plus, as a new user both Grubhub and Seamless are offering $10-12 coupon off delivery orders.
Used the pickup option for my $10 option while travelling last week. Found a funky little place with some good food that I wouldn’t have found had it not been for Grubhub and the AMEX credit.
At least with the dining credit you have some options versus being forced to use Uber with the Platinum card.
I can’t even spend close to $2000 a month just for grocery. $25000 is just too much. Sigh I’m sad that I can’t 4x $25000 gricery a year so I can get one million points. 1000000 is ten thousand dollars.
How many miles do you get per year with csr?
However, It seems something wrong because that PRG is for the entry level credit and now people are comparing with CSR. I think Amex is a pro gamer and winner.
sounds like the amex everyday preferred is really what you need
Tough lower cost competition. My free Amex Blue Cash, gives me 3% on groceries.
My free Costco Citi, gives me 3% on dining, and 4% on gas.
I am looking at a 1% increment with the new Amex card.
That would mean 25,000 in eligible groceries and dining to net back the $250 fee.
Since 25% of my grocery purchases are split between Costco and Target, using my Target 5% Red Card, it doesn’t look good enough to steal my business.
Don’t forget. Frequent travellers usually carry an airline credit card, to get free baggage on their many trips. Perk not as good as it sounds
As far as I know the airline credit does not apply to ubited wifi purchases as it’s actually not charged by United but a third party. That would leave you to buy either food or luggage. Unlikely that you do either when you have status with them.