American Express Cards
In the points and travel hobby, American Express cards have been my longest-enduring companion. I’ve done more with them than any other card type. Perhaps you can relate. Alas, things can get stale. And that’s most certainly happened with Amex lately – at least for my wife and me. Things aren’t what they once were, and I doubt it’ll return back to that level. So why’s our relationship with Amex changing? And what’s worth our involvement these days, if anything?
Changing for the Worse
Taking It Hard
We got our first warning that things were changing at a more significant level when Amex devalued The Schwab Platinum’s Invest with Rewards benefit. Last year, Amex announced they would be phasing out uncapped Membership Rewards redemptions via Invest with Rewards at 1.1 cents per point (previously down from 1.25 cpp). This time, the change was more significant. After annually cashing out 1 million points at 1.1 cpp, cardholders only obtain 0.8 cpp. That’s an approximately-27% drop in value for those who prefer cashing out, which is who my wife and I historically are. Just transfer to travel partners or book flights with Amex Travel, you say. We have zero need for any of that, I say.
We’re taking this devaluation harder than we expected. Of course, this is related to multiple factors, some which I’ll describe later in this article. My wife cashed out most of her allotment, her annual fee came due, we didn’t receive a retention offer (nor did we expect to), and paying the annual fee didn’t make sense this year. She closed her Schwab Platinum card. I’m confident I’ll be in the similar situation later this year.
Things Change
A cashout devaluation is easier to absorb when we can continue generating high amounts of a given rewards currency. But options come and go. Others take more time and effort. With every passing day, I’ve known that time is my most cherished asset – it’s why I made one of the biggest decisions of my life. I’m simply not into using my time doing certain things – related to and beyond points. I become even less interested when that time is rewarded less (see above).
Tumbling Benefits
Many Amex cards come with benefits which continue to devalue. Some of these can be overcome when the rewards outpace them. But, again, that’s not the slam dunk it once was. Consequently, benefit values are playing a more significant role in what we decide to pursue.
Here are just a few benefits we have less use for now (whether due to Amex or our own situation):
- Centurion Lounge Access
- Dell Credits
- Digital Entertainment Credits
- Saks Fifth Avenue Credits
So What’s Left?
Cobranded Cards
Not everything has gone bad for us with Amex. We still place considerable value in the bank’s portfolio of cobranded cards, including Hilton, Marriott, and even Delta cards. We like being able to buy into elite levels with those hotel chains. While not always easy, we’ve been able to come out ahead with Hilton statement credits from the Surpass and Aspire (plus the Business Platinum). The Bonvoy Brilliant’s monthly dining credit simply triggers, even at establishments not necessarily considered restaurants. Despite our previous plans to avoid them, we recently returned to Delta cards. During this latest iteration, we’ve already saved a sizeable amount of SkyMiles with the TakeOff 15 benefit.
Amex Gold
Out of the recent Amex refreshes, I feel the Surpass and Amex Gold ended up with the highest net improvements over their predecessors. In our situation, we’ve been able to maximize the Amex Gold’s newer Dunkin’ and Resy benefits. Most importantly, the Resy benefit has been a cinch to use. Uber and Dining credits remain useful. Since I’m in two-player mode with my wife, the right referral bonus can subsidize the Gold’s annual fee. We plan to double down on the Gold when the right no lifetime language offer appears.
The Promise of New Card Refreshes
We’ve heard noise about future Amex card refreshes. Perhaps we’ll have something to cheer about when they arrive. I’ll conservatively say I’ll be happy if one product comes back better – my hope is on the Amex Everyday Preferred. Of all things to spin positive about, I’m squinting most for this one. But hey, I remain open to surprises in the form of card improvements.
American Express Cards – Conclusion
It’s safe to say my wife and I have fallen out of love with Amex’s ultra-premium cards for the foreseeable future. I can’t justify picking up a new Amex Platinum – consumer or business version – the way things are going right now. We’ll keep playing a high-turnover game with our credit cards – all cobranded ones – and selectively pursue Gold cards. And, of course, we’ll keep maximizing all rewards and benefits on the cards we currently hold – Amex and otherwise.
How are you feeling about Amex these days?
I still have the Surpass and the free Blue Business Card. I used to have 6 cards with Amex but got rid of 4 because of diminishing useful (for me) benefits and higher annual fees. I always fear the words “enhanced card benefits” when terms and benefits are explained because I know it means a lowering or elimination of the offerings. AMEX isn’t the same company they used to be.
How many Amex points were you and your wife cashing out per year with the Schwab Plat card?
Shaun,
Historically, enough that the devaluation mattered. My first link in the “Taking It Hard” section paints the picture.
Amex cards have been a huge rip-off preying on suckers for years, eliminating the rewards – often deceptively – or simply making them harder to take advantage of, while jacking up the prices of their cards massively. One day Wall Street will find out that the credit profiles of Amex cardholders aren’t really the cream of the economy and movers and shakers that Amex pretends they still are, but people who make bad financial choices who aren’t as likely to pay their bills.
If the Amex Everyday Preferred mimicked the flat 2x and no foreign transaction fee proposition of the Capital One Venture, they’d have my business in spades.
Jack,
That would be a significant departure from the Preferred’s prior iteration, but I’m not necessarily against it. Perhaps the consumer version of the Blue Business Plus?!
Yes. Upcapped 2x is where the bar sits. There’s no incentive to use the card as it currently is.
The current iteration is inferior to the Citi Double Cash, the Cap One Venture, and the Wells Fargo Active Cash. And, there’s a $95 annual fee.