Is AMEX Gold worth it?

Answered by Willian Lymon

As an AI language model, I don’t have personal experiences or situations, but I can provide you with a detailed answer to the question of whether the American Express Gold Card is worth the annual fee.

The American Express Gold Card is a popular choice among credit card enthusiasts, particularly those who spend a significant amount on dining and groceries. However, whether or not the card is worth the $250 annual fee depends on your spending habits and utilization of the card’s benefits.

Let’s start by looking at the benefits of the American Express Gold Card. One of the most attractive features is the annual credits it offers. Cardholders receive up to $120 in dining credits each year, divided into $10 monthly credits when you use the card at select restaurants and food delivery services like Grubhub and Seamless. Additionally, you can receive up to $120 in Uber Cash each year, divided into $10 monthly credits, which can be used for Uber rides or Uber Eats orders in the U.S. These credits can help offset the annual fee significantly if you regularly use these services.

Furthermore, the American Express Gold Card offers generous rewards in popular spending categories. Cardholders earn 4 Membership Rewards points per dollar spent at restaurants worldwide and on up to $25,000 in U.S. supermarket purchases per calendar year. This can be a substantial earning rate for those who frequently dine out or have significant grocery expenses. Additionally, you earn 3 Membership Rewards points per dollar spent on flights booked directly with airlines or through amextravel.com. The points can be redeemed for various travel and shopping options, providing potential value if you use them wisely.

In addition to the credits and rewards, the American Express Gold Card offers a range of other benefits, including access to exclusive events, purchase and return protection, extended warranty coverage, and various travel perks. These additional benefits can add value to the card, depending on your needs and preferences.

However, it’s important to consider your spending habits and compare them to other available credit card options. If you don’t dine out frequently or spend much on groceries, the American Express Gold Card may not be the best fit for you. There are other cards available that offer more flexibility in earning and redeeming rewards, or that have lower or even no annual fees.

For example, if you want a card with broader bonus categories, the Chase Sapphire Preferred might be a better choice. It offers 2x points on dining and travel, and you can redeem the points at a higher value when booking travel through Chase’s portal. The card also has a lower annual fee of $95.

Alternatively, if you’re primarily interested in cash back, there are other options worth considering. The Blue Cash Preferred Card from American Express, for instance, offers 6% cash back at U.S. supermarkets (up to $6,000 per year), 6% cash back on select U.S. streaming services, 3% cash back at U.S. gas stations and on transit, and 1% cash back on other purchases. Although it has a $95 annual fee, the higher cash back rates in specific categories may make it a more suitable choice for some individuals.

Whether or not the American Express Gold Card is worth the annual fee depends on your spending habits and utilization of the card’s benefits. If you frequently dine out, spend a lot on groceries, and make use of the annual credits, the card can be well worth the $250 fee. However, if you’re not maximizing the credits and bonus categories, or if you have different spending priorities, another card with lower or more flexible options may be a better choice for you.