Best Charge Card: Premier Rewards Gold Card from American Express
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The American Express Gold Card maintains an air of status to this day. Its premium cost, premium benefits, and backing from one of the most respected credit card companies on the planet has made attaining the Gold card an aspiration for many. But, is it worth it for you? Here's our review of their newer version, the Premier Rewards Gold Card from American Express.
But First, A Little History
American Express didn't invent the charge card, but they sure were one of the first to think about one (1946, by some accounts). No, Diners Club was the first company to issue a consumer charge card, in 1950, with an annual fee of $5. American Express finally released their first in 1958, with an annual fee of $6 to seem like a premium product. The American Express Gold Card didn't launch until 1966. In response to the ever increasing demand for rewards, American Express launched the Premier Rewards Gold Card in 2009.
Why We Like This Card
- 25,000 sign-up bonus points
- No foreign transaction fee
- $100 annual airline fee credit
How This Card Works
The Premier Rewards Gold Card is a charge card, not a credit card, which means you are required to pay your balance in full each month. Thus, there is no interest rate.
This card offers 3x points for flights booked directly with airlines, 2x points for purchases at U.S. supermarkets, at U.S. gas stations, and at U.S. restaurants, and 1x points on other purchases.
Sign up offer: Receive 25,000 Membership Rewards® Points after you spend $2,000 on purchases on your new card in your first 3 months of card membership.
You can transfer these points to their selection of frequent traveler programs or use them for rewards from leading brands in travel, gift cards, merchandise, or entertainment.
Annual airline fee credit. Cardholders will receive up to $100 per calendar year in statement credit that will go towards paying incidental airline fees that are charged to the card, such as checked bags, in-flight refreshments, flight-change fees, and airport lounge day-passes.
No preset spending limit. There are plenty of other benefits associated with these Gold charge cards. For one, there's no preset spending limit, since these are charge cards. But, as I warned before, be sure to pay off your bill each month in its entirety!
Extended warranty and purchase protection. I love the extended warranty that these cards offer. Every time that you buy an item that has a warranty of five years or less, you'll receive an extra year of warranty, just by buying it with the Premier Rewards Gold card. You'll also receive purchase and return protection. This means refunds, theft, and damage are covered for 90 days.
Travel benefits and services. When you travel, you'll be covered by car rental insurance, baggage insurance, and their Global Assist Hotline. They also provide up to a $75 hotel credit on qualifying charges and room upgrade at check-in any time you use your card to book a stay of at least two consecutive nights through The Hotel Collection. There are no foreign transaction fees when you use the Premier Rewards Gold card.
- $195 Annual Fee (waived for the first year)
- No APR (balance is paid in full each month)
- No Foreign Transaction Fee
- Up to $38 Late Payment Fee
Generous points for airfare purchases. I find that the major pro for this card is the triple points on airfare purchases. If you are someone who flies a lot, this card will reward you more than the typical airline co-branded credit card. This means you'll be flying for free on vacation that much faster!
Membership Rewards program. Another big pro for me is the power of the Membership Rewards program. Its network of dozens of airlines and hotels makes travel planning that much more fun and rewarding. And, with many promotions during the year granting bonus points for transferring to specific programs, sometimes 50% or 100% bonuses, what's not to love?
High annual fee. I find that the $195 fee is steep after the first year. Unless you can take advantage of the bonus categories often, then this card is not for you.
Charge card compatibility. Furthermore, the charge card situation is not for everyone. I could see many people not realizing that this card operates differently than other cards, and overspend in their first months. Be sure to read everything about your card before you apply!
Who This Card Is Best For
This card is best for the frequent air traveler. At three points per dollar spent on airline fares, there's really no better card out there for that purchase.
Terms and limitations apply.
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any bank, card issuer, airline or hotel chain.