@Anonymous wrote:
@Anonymous wrote:
You're not the only one that doesn't get the AMEX thing. Their BCE/BCP cards are the best out there for cashback on everyday spending if you ask me, but their charge cards have always been their bread and butter.
A Membership reward point used to be quite valuable, but now unless you are lucky a MR point is worth less than 1 cent. I think you can get 1 cent per point on gift cards but the major part of MR points have been the ability to transfer to airline and hotel partners and AMEX has lost some major partners recently like southwest and continental. Delta is the biggest domestic airline left, and their miles are quite hard to redeem at the lowest levels. Most of their foreign airline partners have fuel surcharges on award tickets which in some cases are so expensive it is almost as much as buying a ticket outright. Makes the points/miles completely worthless.
So you are paying 95, 175, or 450 per year AF for in most cases less than 1 cent per point. Not too appealing. Looking at it that way for the average Joe a Zync is the best charge card, but you get better rewards elsewhere.
The only things I see that still make AMEX great is if you are a frequent traveler and big spender the perks on the Platinum or 15k MR point bonus on the Gold make it worthwhile, but other than that you can get better rewards and card perks elsewhere. As a travel geek Chase UR kick the pants off of MR, not only because United and Southwest are the two biggest airlines at my home airport, but there are no online booking fees through UR, and no point transfer fees either.
I agree. I love Amex and will consider them to be top notch. They were the first prime lender to let me back in the door with a 630 FICO. This says a lot. They took a shot with me.
Some of the reasons I love Amex:
1) The charge cards don't factor into utilization. So, I basically use my cards as a debit replacement. I only purchase what I can pay off in full during the month. This is critical to establishing financial stability. Many people get in trouble by simply living a lifestyle that is based on credit (which they cannot afford)
2) Purchasing power on charge cards grows very quickly. I started out being able to purchase $1200 (soft limit) on my PRG card. After about 4 months of running between $8,000 - $10,000/month, my limit is now $50,000 on both my PRG and Green cards. Try to find a credit card that will grow that quickly!
3) Peace of mind. As others have said, their Customer Service and extended benefits are top notch.
4) Social media discounts. This is a new benefit that I don't hear mentioned too often. I've saved money at McDonald's, Best Buy, Panera Bread and Cheesecake Factory simply by "adding offers to the card" via Facebook, Twitter and 4Square. How many other cards offer that? (These are immediate coupons that post to your billing activity before the statements even cut. Awesome.)
5) Amex will grow with you. After improving credit (now in mid to high 700's) and proving strong payment record with Amex, I was just approved for two of their best cards. Hilton Surpass and BCP, 20K limits on each. I am very impressed.
Why I needed to diversify my portfolio by signing up with Chase:
1) While I love Amex, it is very true that the MR program is very devalued. Now that they have lost Continental/United, the value on the points just is not there. Hence, I now have two Chase cards: United MileagePlus Explorer and the CSP. The Chase Sapphire Preferred is actually the best card out there for those looking for travel rewards. Period.
2) By booking travel through the Ultimate Rewards website, I am able to earn 3 points per dollar on hotel and airfare. Incredible. This is far better than even the United MileagePlus Explorer or Club Card (which carries a hefty annual fee of $395)! CSP also earn 2 points per dollar on all other travel and dining purchases.
3) No foreign transaction fees on CSP (This benefit is only available to platinum Amex holders)
4) 7% yearly point dividend on CSP
5) 20% fewer points required if "paying with points" (Amex is a 1:1 ratio, CSP is 0.8:1 ratio)
6) No point transfer fees. I just paid about $40 to transfer 37,000 points to Jetblue. That really sucked!
7) Primary car rental insurance included with United MileageExplorer - which means that your personal car insurance does not need to cover an accident first (Amex provides secondary insurance with its products, except for platinum or the paid Premium version for $24.95 per rental)
8) Visa signature cards offer price protection - "You made an eligible purchase last week, and now it's on sale at your local retailer. With price protection, you can be reimbursed for the difference when you use your Card (up to $500 per item)." Awesome benefit
9) Again, while I absolutely love Amex, it's not accepted everywhere. I'd say it's accepted at about 90% of the places I've wanted to use it.
So, generally speaking, Amex has great products with great benefits. But, given the changes in the MR program and some of the other benefits offered by Chase, I did find the need to diversify. But, Amex still has a lifelong customer in me. I would never diminish their willingness to take a chance with me. I truly believe I will be splitting my purchases 50-50. That way I can maximize my airline points (via UR/United) and hotel stay points (via Hilton).
Hope this helps.
