Is American Express a Good Credit Card? Pros, Cons, and Best Options
Is American Express a reliable credit card for users? The question is a significant concern for many individuals who are considering using credit cards to their advantage. The American Express selection includes items that are tailored to different lifestyles, spending habits and preferences. By examining the advantages and disadvantages of 5 American Express credit cards, we will also examine the top-rated ones on the market.
Which American express card is right for you?
A major financial services corporation, American Express, is situated in New York, USA. With a founding date of 1850, it has established itself as a specialized credit and charge card provider for those seeking exceptional rewards (such as travel allowances), excellent customer service, and premium amenities.
Now, picking the right American Express cards can probably feel overwhelming because there are so many options to choose from, right? Therefore, your spending habits, lifestyle choices, and desired rewards should all be taken into account when making this decision. There are various Amex cards available which cater to different needs such as cash back, travel benefits, and luxurious services. We shall delve into some of the finest options.
Now, depending on what you’re looking for, Amex has a card that fits various needs. Let’s follow us below:
For cash back
The Blue Cash Preferred® Card from American Express
When it comes to maximizing cash back, the American Express Blue Cash Preferred® Card remains one of the best options out there. This card is specifically catered towards users who do a lot of shopping at U.S. supermarkets and wish to earn rewards on their regular spending.
One of the main draws of this card are its earning potential and cashback rates, which are extremely high. AP News reported that, thanks to inflation in food prices, gasoline, and rent, the Consumer Price Index (CPI) for the United States surged to 3% from 2.9% in December 2024. These rampant increases in CPI can be depressing for families, but these changes also make cash back credit cards such as Blue Cash Preferred American Express cards more beneficial for consumers.
With 6% cash back on all supermarket purchases at American Express, cardholders can earn a lot for their grocery shopping, limited to a set amount each year. Additionally, the card provides 6% cashback on streaming services, thus making it a valuable asset for those who enjoy recreation without breaking the bank. Besides that, you can also earn 3% cash back at gas stations and transit providers.
Key features
Now, let’s take a closer look at its core features:
- Annual fee
- $0 for the first year
- $95 for the rest years
- Intro offer: $300
- APR (Annual Percentage Rate)
- 0% Introductory APR for the first 12 months
- 18.74% – 29.74% variable
- Foreign transaction fee: 2.7%
- Required credit score: You should have a credit score from ‘good to excellent,’ which means at least 670 points. However, to increase the likelihood of approval, a credit score of 700 or higher is advisable
Explore deeper in its cash back benefits below with us:
| Categories | Cash back | Conditions/ Details |
| Groceries | 6% (Up to $6,000 per year in purchases at U.S. supermarkets, then drops to 1%) | Applies to major supermarkets like Kroger, Safeway, Whole Foods, Walmart Grocery |
| Streaming subscriptions | 6% | Applies to Netflix, Disney+, Spotify, Apple Music and more |
| Transit | 3% | Transit includes taxis, rideshare, parking |
| Gas | 3% | At U.S. gas stations |
| Other purchases | 1% | Cash back is turned back in a form of Reward Dollar |
Pros and Cons
- Pros
- Strong intro offer and welcome bonus
- Best-in-class cash back for everyday Spending
- Flexible redemption options
- Cons
- $95 annual fee can be a drawback for budget-conscious users
- Cashback cap with 6% cash back at U.S. supermarkets only applies to the first $6,000 spent per year
- Foreign transaction fee (typically 2.7%), then making it a poor choice for international travelers
For simplicity
The American Express Cash Magnet® Card
This credit card is a special spend for people saying no with complicated cash back experience. Basically, it keeps things simple by offering unlimited 1.5% cash back on every purchase, with no tiered categories or caps to worry about.
Although it does not offer the high rewards potential compared to other Amex cards, it is still favorable because its straightforward design makes it easy to use. Without annual fee, it’s actually a solid option for cash back newcomers or anyone who prefers a hassle-free rewards experience.
Key features
Explore its basic features now:
- Annual fee: $0
- Intro offer: $200
- APR (Annual Percentage Rate)
- 0% intro APR on Purchases for 15 months
- 18.99% – 29.99% variable
- Rewards: 1.5% cash back
- Required credit score: This card require good to very good credit (typically ranging from 670 to 739 score)
Now, unlock a treasure trove of benefits with your card:
- Car rental loss and damage insurance: Enjoy peace of mind with secondary coverage for rental cars when you wave goodbye to collision damage waiver while using this card.
- Purchase protection: Revel in the security of reimbursement up to $1,000 for each incident and a dazzling $50,000 per year against theft, loss, or damage, all within 90 days of your purchase.
- Amex offers: Dive into a world of additional rewards with tailored Amex offers that enhance your spending experience.
Pros and Cons
- Pros
- No annual fee: This card comes without annual cost, so it is a great option for those who want credit card benefits without the extra cost
- Simple cash back structure: There are no complex categories or tiers to track, making it easy to understand and use
- Various insurance and protection: including purchase protection, extended warranty coverage, and car rental insurance, helping protect you in case of unexpected events, adding extra peace of mind when making purchases or traveling
- Cons
- Lower cashback rate, 1.5%, compared to its competitors that offer higher cash back rates for specific categories such as dining, travel, or groceries
- No bonus categories, limiting its earning potential for those who spend heavily in certain areas
For foodies
The American Express® Gold Card
Foodies and dining lovers will surely enjoy the American Express® Gold Card due to its amazing rewards. Being centered around restaurants and grocery stores, this card helps cardholders earn points during their daily dining activities.
Key features
Now let’s look at the offers to understand why it’s best for foodies:
- Annual fee: $250 annually
- APR (Annual Percentage Rate): 20.24% – 28.24% variable
- Welcome offer: Earn 60,000 Membership Rewards Points after you spend $6,000 on purchases on your new card in the first 6 months
- Required credit score: Good to Excellent (670 – 850 score)
- Rewards system:
- 4x points on dining at restaurants worldwide, takeout and delivery in the U.S
- 4x points on groceries in supermarkets in the US (up to $25,000 each year)
- 3x points when you book flight ticket directly via amextravel.com
- 2x points on prepaid hotels and other eligible travel spending
- 1x points on other purchases
Pros and Cons
- Pros
- High rewards rate: Earning a generous rewards structure on dining or travel, which is perfectly fit for those who frequently dine out or travel
- Saving up to $120 annually for dining from the comfort of your home
- Uber Cash credit – get $10 in Uber Cash each month when you add your Gold credit card to your Uber account
- Cons
- High annual fee: This card comes with a $250 annual fee, so it may not be justified for everyone, especially those who don’t spend enough in the eligible categories to make up for the fee
- Complicated reward system: Although the card offers high rewards rates in specific categories, the reward system can be a bit complex, then might be confusing for some users compared to simpler flat-rate rewards cards
- Balance transfers are not available: If you’re looking for a card to help pay down existing credit card debt with lower interest, this card won’t provide that feature, which may be a downside for those needing to consolidate debt
For travel
The Platinum Card® from American Express
Regarding travel credit cards, The Platinum Card® from American Express is believed as one of the most high-flying travel rewards cards on the market. Additionally, its extensive array of travel benefits attracts wanderlust-driven consumers who seek premium experiences and reward opportunities.
The Platinum Card offers generous rewards on flights booked directly with airlines or through American Express Travel, allowing cardholders to earn 5x points on such purchases. This impressive earning potential is only complemented by the remarkable welcome offer available to new cardholders.
Key features
What does it actually offer? Follow us:
- Annual fee: $695 annually
- APR (Annual Percentage Rate): 20.24% – 29.24% variable
- Welcome offer: Get 800,000 points when you spend $6,000 on purchases in the first 6 months
- Required credit score: Good to Excellent (670 – 850 score)
- Rewards system
- 5x points (up to $500,000) when you spend on directly-booked airfare and flights (per calendar year)
- 5x points on prepaid hotels booked with American Express Travel
- 1x points on other purchases
Pros and Cons
- Pros
- Exceptional travel benefits: including $200 hotel credit, $200 Airline free credit, $15 in Uber Cash each month and more
- Generous welcome offer: New cardholders often get a high points welcome bonus within the first few months, the points can be redeemed for flights, hotels, gift cards, or statement credits
- No spending limits: Ideal for big spenders who prefer no rigid credit caps, because this charge card allow for greater spending flexibility
- No foreign transaction fees: truly perfect for international travelers, as you won’t pay additional fees for purchases made abroad
- Cons
- Be one of the highest annual fees among premium travel cards
- The Platinum Card® does not support balance transfers, making it a bad option for consolidating debt
For luxury perks
The Centurion® Card from American Express
This card commonly known as the Amex Black Card, is one of the most exclusive cards in the world, especially designed for high-net-worth individuals and epitomizing exclusivity and high-end benefits.
Particularly, the Centurion Card offers extensive travel benefits, including access to exclusive lounges, upgrades, and personalized service while traveling. For those who frequently travel and crave luxury, the Centurion Card is an unmatched option.
Keep in mind that the Centurion Card is available by invitation only, meaning you cannot apply directly. You must be invited by American Express based on your financial profile and spending habits.
Key features
Below are key features of this card:
- Annual fee: $5,000
- Initiation fee: $10,000
- APR (Annual Percentage Rate)
- APR for Pay over time: Prime rate + 12.74%
- APR for cash advances: Prime rate + 21.99%
- Current offer: Elite status for invite-only cardholders
- Required credit score: Excellent (850+)
- Membership rewards points:
- Earn 1x points on all eligible purchases
- Earn 1.5x points on all eligible purchases over $5,000
Pros and Cons
- Pros
- Travel exclusive offers: Members would receive free access to Centurion Lounges at airports worldwide, priority services at luxury hotels, premium car service to pick up and also travel insurance.
- Enjoy premium shopping perks: $1,000 annual credit for shopping at Saks Fifth Avenue and invitations to exclusive shopping events and exhibitions
- Get CLEAR® Plus membership
- Exclusive access with entertainment and dining: Invitations to high-end concerts, sports events, and art exhibitions; Priority booking at luxurious restaurants and bars
- No spending limits with the Amex Black Card, making your spending more flexible
- Cons
- Extremely high fees: The initiation fee and annual membership fee are substantial, totaling $15,000 in the first year
- Not available to everyone: The card is not available to the general public and requires an invitation from American Express
- The card focuses on premium perks rather than cash back rewards
Do you have good credit?
This question is quite simple but so crucial for you to apply for any American Express credit card. Because most American Express credit cards are designed for people with good to excellent credit scores, which typically range from 670 to 850. That means the more solid your credit score is, the more it improves your chances of approval by American Express credit cards
Undoubtedly, excellent credit scores increase credit card approval rates and also influence the rates and terms. Credit score holders receive better reward offers, higher credit limits, and lower APRs, thus allowing them to maximize the one’s their cards benefits.
Below are some potential factors that might positively affect your credit score:
- The history of payment: This factor can most clearly reflect your ability to repay your debt in full when borrowing
- Your credit age: A long credit history with well-managed credit accounts can be seen as a positive sign for lenders as it demonstrates financial stability and good debt management ability
- Total amounts owned: This one includes the total amounts of debt that is unpaid and your credit utilization ratio
If your credit score isn’t where you want it to be, there’s no reason to worry. Before you can apply for an American Express card, make sure to upgrade your settings.’ Paying debts, making payments on time, maintaining low credit card balances and avoiding excessive application for credit are all crucial starting points. Your chances of getting approved can be improved by gradually increasing your score through minor adjustments.
Further reading:
Where do you spend the most money?
Do you know how your spending habits can influence the best American Express card choice? In essence, your spending habits directly influence which rewards programs and benefits will provide the most value to you. As a result, it is actually crucial to analyze your spending patterns, with a purpose of optimizing your credit card rewards. Indeed, understanding where you allocate your finances will guide you toward selecting the right American Express card tailored to your lifestyle.
We’ll give some key considerations when evaluating your spending habits:
- Spending categories: You need to figure out which categories that you spend the most, such as groceries, gas, dining or travel. This is because different American Express cards cater to specific categories. For example, if you frequently shop at supermarkets, the Blue Cash Preferred® Card is perfect for you. In contrast, those who love travel and dedicate time for it the most could benefit more from the Platinum Card®.
- Lifestyle matching: Analyze the descriptions of the features of each credit card, as many of them are tailored to a specific lifestyle. If you frequently dine at restaurants, using the American Express® Gold Card will get you the most value out of your dining. On the contrary, if you tend to go on business or leisure trips quite often, having a card that is focused more on travel will only make your experience more enjoyable.
- Long-term spending goals: Think about it now if you’re aiming to accumulate points for a significant travel reward or just simply wanting to maximize cash back. This literally plays a critical role in determining which American Express card aligns with your financial objectives.
FAQ
If you’re looking into American Express credit cards, you probably have some questions. Here are some common ones to help you out:
Is American Express a good credit card for beginners?
Absolutely yes, American Express offers plenty of options that are designed especially for newcomers. For example, some credit cards such as the Blue Cash Everyday® Card and the American Express Cash Magnet® Card provide services without annual fees, straightforward cash-back structures and good welcome bonuses
Also, an important note is that cardholders should also consider their spending habits and lifestyle before choosing a card, then this can help establish good credit practices without overwhelming complexities.
Are American Express cards widely accepted?
American Express credit cards are actually not generally accepted like Visa or Mastercard, while American Express is one of the leading credit card issuers.
In fact, many businesses, especially larger retailers and hotels, accept American Express, however, some smaller establishments may prefer Visa or Mastercard due to lower transaction fees associated with those networks.
Do American Express cards have annual fees?
Yes, they do. Actually, there are several American Express cards that charge annual fees, even with high fees, such as the Centurion® Card and the Platinum Card®. That said, they also provide exclusive perks and travel advantages that you might find valuable.
On the contrary, there are also other options of payments without an annual fee like the cash Magnet® Card, ideal for the very budget-conscious.
What credit score is needed for an American Express card?
In fact, American Express typically values individuals with good to excellent credit scores, usually 700 or higher. That said, don’t lose hope if your score isn’t quite there. Because The exact requirement can vary depending on the card and your unique credit story. So, There’s still a chance for you to qualify, especially for starter cards designed to help you build your way up.
One of the most widely used credit scoring systems to assess consumers’ creditworthiness is FICO model, typically ranging from 300 to 850 score, with the following levels:
| Credit score band | Range | Amex cards |
| Excellent | 800 + |
|
| Very good | 740 – 799 | Amex Gold |
| Good | 670 – 739 |
|
| Fair | 580 – 669 | Amex Blue Cash Everyday |
| Poor | 300 – 579 | Difficult to get approved for a standard American Express card |
Can rewards points be transferred between Amex cards?
That’s certainly yes, as long as your American Express are both enrolled in the same Membership Rewards® program. By doing so, you can easily transfer points between them. To illustrate, if you have the Platinum Card® and the Gold Card, you can combine or move points between the two, as long as they’re tied to the same account. It’s a simple way to make the most of your rewards.
How can I avoid paying interest on my American Express card?
It’s really vital to pay your balance in full by the due date every month. If you pay the entire balance, you won’t be hit with interest on your purchases-it’s like giving yourself a little financial win, isn’t it? However, if you only make the minimum payment or carry a balance, interest will be applied to the remaining balance, often at a high rate. So, paying off your balance each month is the best way to keep your costs down.
What is the difference between American Express and other credit card issuers like Visa or Mastercard?
While Mastercard and Visa are all payment networks, American Express card serves as both the card issuer and payment network. American Express manages its own cards and services, unlike Visa or Mastercard which rely on partnerships with banks to distribute card offerings. In addition, many top-notch benefits are also available with Amex cards (travel rewards and other similar privileges). While there is a trade-off, their cards are not as widely accepted as Visa or Mastercard cards, which have fewer retailers.
Here is the table comparison between these kind of card:
| Features | American Express | Visa/Mastercard |
| Issuer | Issuer and payment network | Partnership with banks |
| Payment network | Own network | Partner network |
| Acceptance | Less widely | Widely accepted |
| Rewards and benefits | Premium rewards and perks | Varied benefits but less premium |
