AMEX Gold Renewal - Annual Fee Question

[AirlinerDudeB6]

So, my AMEX Gold Card renewal is next month.  

In my statement that just closed on 10/27, it showed in my "renewal notice" that my fee is $125 and will post next statement.  

I know they raised the fee to $160 this year...so is this a mistake?

Anyone else with the standard gold card experience this?

[Anonymous]

Hi, I have nowhere near good enough credit to app for an AMEX, but I do have a question: what is the benefit for having an Amex that outweighs that $125 fee? I went to their website to look at their products and was astounded that many of them have fees that high or higher and really no other benefits about abs beyond others cards. I immediately dismissed them as a card I don't "need" to have - perhaps ever. I know the ED and BCE have much lower or zero fees. But the rewards are comparable to other cards. Is it just the desire to have a prime card that's viewed as the "best"? Or what am I missing?

[Anonymous]

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@Anonymous wrote:
Hi, I have nowhere near good enough credit to app for an AMEX, but I do have a question: what is the benefit for having an Amex that outweighs that $125 fee? I went to their website to look at their products and was astounded that many of them have fees that high or higher and really no other benefits about abs beyond others cards. I immediately dismissed them as a card I don't "need" to have - perhaps ever. I know the ED and BCE have much lower or zero fees. But the rewards are comparable to other cards. Is it just the desire to have a prime card that's viewed as the "best"? Or what am I missing?

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for me it's exactly that. i like having the best and AFs dont deter me one bit. i think all told i pay over $1,000 in annual fees every year but I love all my cards

[takeshi74]

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@AirlinerDudeB6 wrote:

So, my AMEX Gold Card renewal is next month.  

In my statement that just closed on 10/27, it showed in my "renewal notice" that my fee is $125 and will post next statement.  

I know they raised the fee to $160 this year...so is this a mistake?

Anyone else with the standard gold card experience this?

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One doesn't have to have the Gold.  The change is for new accounts.  This is typical for most cards out there.  If the AF you're subject to is going to change you will receive a notice.

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@Anonymous wrote:
Hi, I have nowhere near good enough credit to app for an AMEX, but I do have a question: what is the benefit for having an Amex that outweighs that $125 fee?

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Subjective.  We can't tell you that.  You need to look at each product out there and assess how well it suits you.  If you're looking for rewards then you need to run the numbers for your spend.  If a rewards card you're looking at is a point/miles card then you probably need to look beyond the earn rate and consider redemptions.  You need to determine how the methods that you can redeem would impact point/mile value.  You also need to look at other features and benefits of a give product and assess how those suit your needs/wants.  Always consider total cost/benefit and not just the AF.

You need to look at indivudal products.  Don't just pick a creditor like AmEx and then try to justify a card.  Use your needs/wants as requirements for determining which products suit you.

No card is one-size-fits-all.  The AmEx Gold, like any other card, suits some and not others.  It's never just about the card itself but how well the card suits the individual situation and needs/wants.

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@Anonymous wrote:
Is it just the desire to have a prime card that's viewed as the "best"? Or what am I missing?

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Different people have different reasons.  There are certainly those that select cards that they think are "best" (which is a highly subjective word that doesn't mean much without qualification) based om image, prestige, etc.  While it's up to each to determine their criteria I'd still stick to what I recommend above.

For the Gold in particular, many find that the PRG is a better option because of its higher earn rates and it also now has an airline fee credit.  You really have to carefully look over all the benefits.  There are some that use charge cards because they do not impact revolving utilization for current FICO models.  Typically these people have frequent reimbursable expenses that are reimbursed in a timely fashion so they can pay off the charge cards each cycle.

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@Anonymous wrote:
I know the ED and BCE have much lower or zero fees. But the rewards are comparable to other cards.

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Don't put so much weight on AF's and, again, consider total cost/benefit and run the numbers.  People tend to flock to the ED and BCE because they have no AF but their rewards are not comparable to the EDP and BCP.  The BCP generates significantly more rewards for my spend.  YMMV but you have to do the math to determine that.

[Berk]

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@Anonymous wrote:

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@Anonymous wrote:
Hi, I have nowhere near good enough credit to app for an AMEX, but I do have a question: what is the benefit for having an Amex that outweighs that $125 fee? I went to their website to look at their products and was astounded that many of them have fees that high or higher and really no other benefits about abs beyond others cards. I immediately dismissed them as a card I don't "need" to have - perhaps ever. I know the ED and BCE have much lower or zero fees. But the rewards are comparable to other cards. Is it just the desire to have a prime card that's viewed as the "best"? Or what am I missing?

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for me it's exactly that. i like having the best and AFs dont deter me one bit. i think all told i pay over $1,000 in annual fees every year but I love all my cards

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What does that even mean in reference to credit cards? If I am understanding you correctly you are saysing that you love spedinding over $1,000.00 a year for the priviledge of carrying around credit cards from banks that, in your opinion, "are classy" and give your wallet that flair when you whip your Amex Gold out to pay for your cheeseburger at McDonalds (because you now get two points for using it at restaurants).

[jsucool76]

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@Berk wrote:

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@Anonymous wrote:

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@Anonymous wrote:
Hi, I have nowhere near good enough credit to app for an AMEX, but I do have a question: what is the benefit for having an Amex that outweighs that $125 fee? I went to their website to look at their products and was astounded that many of them have fees that high or higher and really no other benefits about abs beyond others cards. I immediately dismissed them as a card I don't "need" to have - perhaps ever. I know the ED and BCE have much lower or zero fees. But the rewards are comparable to other cards. Is it just the desire to have a prime card that's viewed as the "best"? Or what am I missing?

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for me it's exactly that. i like having the best and AFs dont deter me one bit. i think all told i pay over $1,000 in annual fees every year but I love all my cards

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What does that even mean in reference to credit cards? If I am understanding you correctly you are saysing that you love spedinding over $1,000.00 a year for the priviledge of carrying around credit cards from banks that, in your opinion, "are classy" and give your wallet that flair when you whip your Amex Gold out to pay for your cheeseburger at McDonalds (because you now get two points for using it at restaurants).

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I'm going to have to agree with Berk here. Saying "I like to have the best" isn't a real answer to the brnhill's question, nor do I think it's a fitting reason for justifying $1,000 in annual fees. (Really the whole discussion should be in a different thread altogether, but that is beside the point ) 

The justification for cards with annual fees is usually one of three things. 

1) Strong Signup Bonus - For instance, I recently applied for the amex plat, and paid the $450 annual fee because of the 100,000 point bonus

2) Strong rewards program/earning potential - Many people pay for the Chase Sapphire Preferred, or amex premier rewards gold because they offer decent earning potential in a strong program (Ultimate Rewards and Membership Rewards respectively). They feel like (and often do) get more value out of the cards than the annual fee. 

3) Great Perks - Many people pay annual fees for hotel cards (Chase, Hyatt, IHG, Wyndham etc. ) because they offer an annual free night at a hotel. With annual fees ranging from $49-$85, to many it is a "steal" to get a free night for that cost. Other perks like airline credits can help to lessen the impact of the annual fee as you can often get money back in the form of (essentially) a cash equivalent for travel. Perks like airport lounge access, or hotel elite status are another big one. Then There are cards that can give you free checked bags on airlines which can be $25 each way. Two roundtrip flights and your $89 credit card now saved you $11. 

As far as the reason to have the amex gold card for $125...I personally think that card is a waste, and would encourage many to opt for the premier rewards gold card instead. It earns 2x on restaurants now, but the PRG does also, as well as 3x on flights, and the $100 airline fee credit, which essentially lessens the fee to $95...cheaper than the standard gold card. But everyone has their own opinions. 

As far as saying "I have them cause I like the best," It just sounds like you're saying "I'm better than you because I pay $1000 in annual fees" 

Also...I pay almost $1600 in annual fees.  

[Anonymous]

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@Berk wrote:

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@Anonymous wrote:

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@Anonymous wrote:
Hi, I have nowhere near good enough credit to app for an AMEX, but I do have a question: what is the benefit for having an Amex that outweighs that $125 fee? I went to their website to look at their products and was astounded that many of them have fees that high or higher and really no other benefits about abs beyond others cards. I immediately dismissed them as a card I don't "need" to have - perhaps ever. I know the ED and BCE have much lower or zero fees. But the rewards are comparable to other cards. Is it just the desire to have a prime card that's viewed as the "best"? Or what am I missing?

---

for me it's exactly that. i like having the best and AFs dont deter me one bit. i think all told i pay over $1,000 in annual fees every year but I love all my cards

---

What does that even mean in reference to credit cards? If I am understanding you correctly you are saysing that you love spedinding over $1,000.00 a year for the priviledge of carrying around credit cards from banks that, in your opinion, "are classy" and give your wallet that flair when you whip your Amex Gold out to pay for your cheeseburger at McDonalds (because you now get two points for using it at restaurants).

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i think you hit the nail on the head. why do we have anything nice? why dont we all drive a 1991 toyota corrolla because it costs less? why don't we all have 500 square foot houses and wear burlap sacks for clothes? its basic psychology. i like knowing (especially for NPSL cards) that i can spend whatever i need and just pay it off at the end of the month. i like the rewards structure and when you put 5-10k spend through it every month, the points greatly outweigh the fee. i pay $400 a year for my Ritz carlton card because i love the look on peoples faces when i hand them that frying pan of a card for my purchase. its all about personal preference. you like to save money which is totally okay, but i dont mind spending money on things that I like.

[Anonymous]

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@Anonymous wrote:

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@Berk wrote:

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@Anonymous wrote:

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@Anonymous wrote:
Hi, I have nowhere near good enough credit to app for an AMEX, but I do have a question: what is the benefit for having an Amex that outweighs that $125 fee? I went to their website to look at their products and was astounded that many of them have fees that high or higher and really no other benefits about abs beyond others cards. I immediately dismissed them as a card I don't "need" to have - perhaps ever. I know the ED and BCE have much lower or zero fees. But the rewards are comparable to other cards. Is it just the desire to have a prime card that's viewed as the "best"? Or what am I missing?

---

for me it's exactly that. i like having the best and AFs dont deter me one bit. i think all told i pay over $1,000 in annual fees every year but I love all my cards

---

What does that even mean in reference to credit cards? If I am understanding you correctly you are saysing that you love spedinding over $1,000.00 a year for the priviledge of carrying around credit cards from banks that, in your opinion, "are classy" and give your wallet that flair when you whip your Amex Gold out to pay for your cheeseburger at McDonalds (because you now get two points for using it at restaurants).

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i think you hit the nail on the head. why do we have anything nice? why dont we all drive a 1991 toyota corrolla because it costs less? why don't we all have 500 square foot houses and wear burlap sacks for clothes? its basic psychology. i like knowing (especially for NPSL cards) that i can spend whatever i need and just pay it off at the end of the month. i like the rewards structure and when you put 5-10k spend through it every month, the points greatly outweigh the fee. i pay $400 a year for my Ritz carlton card because i love the look on peoples faces when i hand them that frying pan of a card for my purchase. its all about personal preference. you like to save money which is totally okay, but i dont mind spending money on things that I like.

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Your expanded explanaiton is more useful that "the best", as there is certainly no consensus that Amex IS the best!   For the Amex, the explanation puts you more in line with other people's thinking (the points outweigh the fee).   Paying for the Ritz merely for the look on people's faces (rather than say nights and upgrades), mmm, maybe a less common reason.    (Although come to think of it, enough people want the CSP because it is metal, so maybe not)

[Anonymous]

Considering I just booked 5 free nights at the Central Park ritz Carlton in NYC at Christmas for free, I'd say that was worth the $400 every day of the week.

[Anonymous]

Unless the amount that what you get back in points and USE along with the perks outweighs the annual fee that you pay....I would say get rid of the card. It all boils down to dollars and cents. For example, I have a Delta Amex card and use it for the boarding perk and free checked bags - but other than using it for the points from the sign up bonus...I would never use the card simply because it only gives 1 point for everything but travel. After I take my trip in February and use the 50k in bonus points - I will pay the annual fee once on this card and PC it to a different card with no annual fee or cancel it. I actually use my Venture card consistently because I get 2 points on all purchases towards travel and only contend with a $59 annual fee. The .75% difference in the points between a Venture card and VentureOne - or .5% difference between a Quicksilver card more than makes up for the $59 annual fee - therefore in my book its a keep. It has never crossed my mind that I should want a card for "status".