Amex Platinum vs. Amex Gold: Which One Is Right for You?

Amex Platinum vs. Amex Gold: Which One Is Right for You?

Until recently, the line between premium and entry-level credit cards was very clearly demarcated. The old saying held true that “you get what you pay for,” giving consumers the chance to pick between more expensive cards that returned outsized welcome offers, bonus categories and luxury perks, and cheaper cards that offered a foray into the world of travel rewards without too much of a financial commitment.

In the best way possible, the recently refreshed American Express® Gold Card has obliterated that divide and inserted itself right in the middle, offering strong rewards and valuable perks with a medium-sized $250 annual fee. So instead of sticking to the binary decision of premium vs. entry-level credit card, today we’ll compare the Amex Gold to the Platinum Card® from American Express and see which one is right for you.

Welcome Bonus

One area where premium credit cards reign supreme is the welcome bonuses they offer to entice customers to pay an annual fee of $450 or more ($550 in the case of the Amex Platinum). The Amex Platinum is no exception, offering a publicly available bonus of 60,000 Membership Rewards points after spending $5,000 in the first 3 months. TPG values Membership Rewards points at 1.9 cents each, making the bonus worth $1,140.

Many people have been targeted for a higher bonus of 100,000 points (worth $1,900) after the same $5,000 in spending by checking for offers through the CardMatch tool. (Offer subject to change at anytime).

While there are plenty of things to love about the refreshed Amex Gold, unfortunately the welcome bonus ranks near the bottom of the list. New applicants will receive 25,000 Membership Rewards points (worth $475 per TPG valuation) after spending $2,000 in the first 3 months, plus 20% back (up to $100) on purchases at US restaurants during the first 3 months as part of Amex’s “We’ll Pick Up the Tip” promotion for those who apply by Jan, 9, 2019. Some readers have also reported being targeted for a 50,000-point offer through the Amex website or via referral links, and given Amex’s “once-in-a-lifetime” policy for welcome bonuses, it’s worth checking before you pull the trigger.

Verdict: The Amex Platinum is the clear winner here, especially if you’re lucky enough to get targeted for the monstrous 100,000-point bonus.

Earning The Amex Gold is a no-brainer for spending at US restaurants. Photo by rawpixel on Unsplash.

Describing the bonus categories on the Amex Platinum is a short and simple task, and not necessarily in a good way. For all the bells and whistles that accompany this heavy metal card and its premium price tag, there’s only one bonus category to speak of: 5x Membership Rewards points on airfare booked directly with the airline, and airfare and prepaid hotels booked through amextravel.com.

While the 5x return (9.5%) is a powerful benefit to have in your wallet, the lack of other bonus categories and heavy restrictions on what earns 5x means that the Amex Platinum doesn’t stack up well, especially against other premium credit cards.

Meanwhile, the new bonus categories are the most exciting part of the Amex Gold‘s refresh. Card holders will earn at the following rates:

4x at US restaurants 4x at US supermarkets (up to $25,000 per calendar year; then 1x) 3x on airfare purchased directly from the airline 1x everywhere else Terms apply

The Gold Card lost its 2x on gas station purchases, but the new 4x bonus categories more than make up for it. 4x on restaurants, which amounts to a 7.6% return, is better than what you’ll find even on premium credit cards like the Chase Sapphire Reserve (which offers 3x, or 6% back on dining). The $25,000 cap on supermarket bonus spending isn’t ideal, and neither is the restriction of these bonus categories to purchases made in the US, but strong earnings on airfare, dining and groceries is worth getting excited about.

Verdict: While the Amex Platinum’s one bonus category earns more points than any of the Amex Gold’s bonus categories, I’ll take three strong bonus options over one valuable but highly restrictive one any day. The Amex Gold wins here.

Redeeming

I’ll keep this section short and sweet as there aren’t any noteworthy redemption differences at all between the two cards. Both earn the same transferable Membership Rewards points, and absent a pay with points rebate (which only exists on the The Business Platinum® Card from American Express OPEN), neither card has any sort of edge here.

However, if you do have either of these cards or any other Membership Rewards point-earning card, make sure to familiarize yourself with the best ways to use them. Highlights include transferring to Etihad Guest to book partner awards like American Airlines to Europe for 50,000 miles in business class, and transferring to British Airways to book award flights to Hawaii from the West Coast.

Verdict: It’s a tie!

Perks & Credits Amex Platinum card holders get access to Centurion Lounges like this one at Hong Kong International Airport. (Image by Billy H.C. Kwok/Getty Images For American Express)

To justify its $550 annual fee, the Amex Platinum really comes with a ton of perks — too many to list them all here, but we’ll go through some of the highlights. To start with, the card offers up to $500 in annual statement credits, including:

$200 airline incidental credit — Not valid for the purchase of airfare, but it can be used for incidental charges like seat selection, bag fees, lounge access, etc. It’s also possible to use the credit for certain airline gift cards. $200 in annual Uber credits — It breaks down to $15 a month with a $20 bonus in December. $100 annual Saks Fifth Avenue credit — $50 valid for purchases made between January and June, and another $50 for purchases made between July and December.

I don’t put as much weight into the last credit since I would never otherwise shop at Saks, but I take the first two credits at face value, effectively lowering the out of pocket cost for the Amex Platinum from $550 to $150.

To make up that remaining cost, the Amex Platinum offers the single most comprehensive lounge access of any credit card. Not only will you get the (now laughably ubiquitous) Priority Pass select membership, but you’ll also get access to Amex’s exceptional global collection of Centurion Lounges, and access to Delta Sky Clubs when flying Delta.

Platinum cardholders will also enjoy gold elite status with Marriott and Hilton, have access to premium concierge services, and a whole host of other lesser-known benefits such as travel insurance and purchase protection. And keep an eye on your mailbox as well, as American Express has been known to unexpectedly mail out luxury gifts to Platinum cardholders. While you will have to pay the $550 annual fee upfront at the beginning of your account year, all these perks make it easy to see how the Platinum card can pay for itself over time.

The Amex Gold has a much shorter list of benefits, but they still add a ton of value to the card. To offset the $250 annual fee, card holders will enjoy up to $220 in annual statement credits, including:

$100 airline incidental credit — Like with the credit on the Platinum card, this cannot be used directly for airfare. $120 in annual dining credits — Up to $10 a month at the following merchants: Grubhub, Seamless, The Cheesecake Factory, Ruth’s Chris Steak House and participating Shake Shack locations.

If you’re capable of maxing these both out, this will leave you with an out-of-pocket cost of $30 a year. Amex Gold card holders will also enjoy double points and a $75 property credit when booking hotel stays of two nights or longer through the Amex Hotel Collection, as well as insurance for lost, stolen or damaged bags.

Verdict: The Amex Platinum card undeniably has more bells and whistles and offers a stronger value proposition over time, but you have to pay up to get those benefits. While I do give it the edge in this category, it’s very much a personal decision, and the Amex Gold might offer the better and more relevant benefits for your specific situation.

Bottom Line

There’s absolutely room for both of these cards in your wallet if you decide you want them, and in fact these cards complement each other very well. If you only want to pay up for one annual fee, you can frame the question like this: Do you want higher bonus earning rates on a wider variety of categories or do you want valuable perks that will add a splash of luxury to your upcoming travels? If the first option sounds more like you, then the Amex Gold is the card to get you there. If you resonated with the second scenario, there aren’t many cards better than the Amex Platinum to achieve that goal.