Why an American Express Gold Card is a Great Investment

The American Express Gold Card is becoming more popular as consumers realize the long-term benefits. Below explains why the Gold Card is such a great investment for cardholders.

Exclusive Rewards
According to the Ameriprise website, the American Express Gold Card offers excellent benefits. First, the membership rewards program provides one point per every dollar spent. However, card owners can select how to use their points based on their charges. That is, card owners can redeem their points for categories, such as dining or retail, based on their own preference. Every 10,000 dollars spent will result in an extra 2,500 reward points. However, this is capped at 20,000 dollars. Cardholders can directly use their points in a variety of ways. For example, they can apply it to their credit, shop online, purchase gift cards and use it for travel expenses.

Still, the best possible value is available when cardholders transfer their points to hotel and airline loyalty programs. To illustrate, the cardholder can possibly earn up a tenth of a penny per membership point. However, the conversion rate is different for each loyalty program. Card owners can easily transfer points to over 20 major hotel and airline frequent traveler programs. Finally, the card also comes with exclusive benefits, such as roadside assistance and car rental loss and damage insurance.

Charge Card vs. Credit Card
Most consumers aren’t aware that the American Express Gold Card is in fact a charge card and not a credit card. This is an important point because a failure to understand this may cause serious financial problems down the road. That is, a charge card does not allow the account owner to carry a balance at the end of the month. Therefore, the card owner is expected to pay off all charges at the end of every billing cycle. If the account owner fails to pay off their balance, there are stiff penalties. For example, the American Express Gold late fees are higher than popular credit cards when the person fails to pay off their balances two bill cycles in a row. The typical late fee is 36 percent, which is higher than the average 19 percent for regular credit cards.

A unique feature of the charge card is that there is no preset spending limit. Traditional credit cards have capped credit spending amounts. However, the American Express Gold card automatically sets a monthly credit limited based on their spending trends and payment history. This offers excellent purchasing flexibility over a traditional credit card. Cardholders who lack self-control and struggle to pay off their bills may not benefit from this feature.

Travel Rewards
The American Express Gold Card offers excellent travel rewards. For example, the so-called Hotel Collection reward will give cardholders a 75 dollar hotel credit when they stay for two consecutive nights in a row at a participating hotel. However, the hotel must be booked online through the American Express travel platform. Additionally, cardholders will receive additional money back when they meet other specific criteria. Keep in mind that this unique credit is not limited to a single hotel chain and it can be applied on multiple stays through the year. Therefore, it is one of the travel benefits available through a charge card.

On the other hand, the American Express Gold Card also offers additional bonus points for travel charges. First, whenever the cardholder book flights and hotels through the online Amextravel portal, they will receive two points per every dollar spent. Thus, they can apply these points towards their hotel credit. Finally, cardholders also receive two points per every dollar spent whenever they use the popular Uber service. This is especially beneficial for individuals and business people who often travel.

To wrap up, financially savvy individuals will enjoy the various benefits that come with the American Express Gold Card, which offers exclusive travel rewards and a custom membership point system.

No comments:

Post a Comment

Related Posts Plugin for WordPress, Blogger...