When it comes to credit cards, many people question the logic of holding two cards that earn the same type of points while paying hefty annual fees for both. It seems like a waste of money, right? However, for some individuals, including myself, it actually makes perfect sense to have both the Platinum Card® from American Express and the American Express® Gold Card in their wallets. In this article, I will explain why.
First and foremost, let’s talk about the welcome bonuses. The welcome bonus is one of the most valuable benefits of a credit card, especially during the first year of card membership. American Express offers welcome bonuses on most of their cards, but they have implemented restrictions for cards within the same family. For example, if you currently have or have had the Amex Platinum, you may not be eligible for the welcome bonus on the Amex Gold. However, the reverse is not true. As of now, you can still earn a Platinum welcome bonus as a current or past Gold card member. This means that you can start with the Amex Gold and then add the Amex Platinum at a later date, as long as you meet the issuer’s other application rules.
Currently, new applicants for the Amex Platinum can earn 80,000 bonus points after spending $8,000 on purchases in the first six months of card membership. On the other hand, applicants for the Amex Gold can earn 60,000 bonus points after spending $6,000 on purchases in the first six months. These points are valued at 2 cents apiece, making the total value of the bonuses $2,800 and $1,200 respectively. By obtaining both cards, you can earn a total of 140,000 bonus points, which is worth $2,800.
Now, let’s talk about the earning rates. The Platinum and Gold cards have different earning rates, which can help you maximize your points. The Platinum card earns 5 points per dollar on flights booked directly with airlines or with Amex Travel (up to $500,000 of these purchases annually, then 1 point per dollar). It also earns 5 points per dollar on hotels booked and prepaid with Amex Travel, and 1 point per dollar on other purchases. On the other hand, the Gold card earns 4 points per dollar at restaurants and U.S. supermarkets (on up to $25,000 of annual purchases, then 1 point per dollar), 3 points per dollar on flights booked directly with airlines or Amex Travel, and 1 point per dollar on other purchases.
By using the right card for each purchase, you can earn thousands of extra points each year. For example, you can use the Platinum card for flights booked directly with airlines or with Amex Travel, as well as for hotels booked and prepaid with Amex Travel. This will earn you 5 points per dollar spent. On the other hand, you can use the Gold card for dining at restaurants and shopping at U.S. supermarkets, earning you 4 points per dollar spent. By strategically using both cards, you can maximize your earnings and accumulate points faster.
In addition to the earning rates, both the Platinum and Gold cards offer annual credits that can put hundreds or even thousands of dollars back in your pocket. The Amex Gold card provides $120 in dining credits and $120 in Uber credits each year. By using these credits, you can almost cover the card’s $250 annual fee. On the other hand, the Amex Platinum card provides $200 in airline fee credits, $200 in Uber credits, and $100 in Saks Fifth Avenue credits each year. These perks alone provide more than $1,500 in annual value, well above the card’s $695 annual fee. Even if you can only use 50% of the credits, it’s still worth more than the annual fee.
Furthermore, both the Platinum and Gold cards offer shopping and purchase protections, although the coverage levels vary. For example, the Platinum card provides coverage for cellphone protection, return protection, trip cancellation and interruption insurance, trip delay insurance, travel emergency services, baggage insurance plan, and car rental loss and damage insurance. On the other hand, the Gold card offers coverage for extended warranty protection and purchase protection. By having both cards, you can gain additional protection and peace of mind when it comes to shopping and travel.
In conclusion, while it may not seem logical to hold two cards that earn the same type of points and come with hefty annual fees, it can actually be worthwhile for many individuals. By having both the Platinum Card® from American Express and the American Express® Gold Card, you can take advantage of two different welcome bonuses, maximize your earnings with different earning rates, benefit from annual credits, and gain additional shopping and purchase protections. Ultimately, it’s all about maximizing the benefits available and ensuring that you’re getting the most value out of your credit cards.