American Express Gold Card: Worth Your Time?

American Express Gold Card
According to American Express, they offer 21 different cards. There is the platinum card, the gold card, and the traditional green card, just to name a few. So what makes the gold card different from the other cards American Express offers as well as from all the other cards on the market? The following discusses the benefits and drawbacks of the American Express gold card.

Benefits
There are several benefits of having an American Express gold card. A few of these benefits include complimentary roadside assistance anywhere in the United States and Canada as well as a purchase protection program in which stolen, lost, or accidentally damaged items purchased with the card can sometimes be repaired or replaced. There is also a baggage insurance plan, and a variety of online services are provided when you use this card.

The point system is often considered one of the biggest advantages of having an American Express gold card. Card members can earn points in several categories such as with the airlines, various supermarkets, and gas stations. If you spend $2,000 during your first three months of having the card, you’ll receive a sign up bonus of 25,000 points. This point system is considered one of the best point systems offered by any credit card. With a few exceptions, customers can earn 1 point for every dollar that is charged.

Besides these many benefits, users can also use the card for dining credits when staying at any eligible hotels. Travel protection services are also considered a good benefit of the gold card. While every American Express card includes insurance for rental cars, this particular card adds even more travel perks.

Drawbacks
One of the first and most obvious disadvantages is the annual fee. For the first year the introductory fee is $0. After that, however, the fee is $160 annually. This fee may change from year to year, but is still one of the highest card fees on the market. Most of the other cards American Express offers either have no annual fees or the fees are much lower. There are also high foreign transaction fees when using the card.

It’s important to remember that the American Express Gold Card is a charge card, and not technically a credit card. This basic difference means that the balance must be paid in full each month. Failure to pay each month means the account will be considered delinquent and penalty rates will be applied. If a card user thinks he or she may even occasionally need to carry a balance it’s better to use a regular credit card.

Finally, any American Express card is not as widely accepted as most of the other well-known cards. If you carry this card you’ll almost certainly have to carry another in case you wouldn’t be able to use your gold card.

Is the Gold Card Right for You?
While having an American Express gold card is not as elite as it used to be, there are still several prominent benefits for users to enjoy. If you’re someone who needs or uses costumer assistance, this card may be for you. If you’re willing to put everything from gas and groceries to paying the cell phone bill on the card, and are able to easily pay off the balance at the end of each month, this card may be worth it because of all the points you’ll earn.

If you’re just going to carry it around for emergencies or only a limited amount of spending, paying the annual fee every year probably isn’t worth it. If you need a large line of credit each month, the gold card will work for this as well. This card would generally be worth it for those who would use it extensively and would have no problem paying the balance each month.

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