The American Express® Gold Card has long been a top choice for those who enjoy dining out and want to maximize rewards on grocery shopping. It offers substantial rewards on eligible supermarket and restaurant purchases, along with a suite of dining-related benefits designed to offset the cost of its annual fee. However, recent changes to the card, including an increase in the annual fee from $250 to $325, have prompted many to reassess whether it still offers good value. Whether you’re an existing cardholder or considering applying for the Amex Gold Card, it’s essential to evaluate the updated benefits to see if they justify the higher cost.
Rewards Structure and Earnings Potential
One of the most appealing aspects of the Amex Gold Card is its rewards structure, which is particularly attractive for those who spend heavily on dining and groceries. The card offers 4x Membership Rewards® points at restaurants worldwide, which includes everything from fine dining to fast food. Additionally, you can earn 4x points at U.S. supermarkets, up to $25,000 per calendar year, after which the rate drops to 1x. These rewards are particularly lucrative if you frequently dine out or have significant grocery expenses.
For travel enthusiasts, the card provides 3x Membership Rewards points on flights booked directly with airlines or through AmexTravel.com, making it a solid choice for booking airfare. Meanwhile, other eligible travel purchases booked through AmexTravel.com earn 2x points, and all other purchases earn 1x point.
The rewards you can earn are undeniably strong, especially if your spending habits align with these categories. But with the increased annual fee, you might wonder if the benefits outweigh the cost.
New Benefits and Credits
To help justify the $75 increase in the annual fee, Amex has introduced several new credits and benefits. Among the most notable additions is the $100 annual Resy credit. This credit is split into two $50 installments, available every six months, and can be used at U.S. restaurants on the Resy app or Resy.com. This is particularly useful if you frequently dine at restaurants that use Resy for reservations, as it essentially gives you a $100 rebate on your dining expenses each year.
Another new feature is the $84 annual Dunkin’ credit, which breaks down into $7 monthly credits. If you’re someone who regularly grabs a coffee or snack from Dunkin’, this credit could be a nice perk, helping you save on your daily caffeine fix.
Moreover, the card’s existing $120 annual dining credit has been expanded to include Five Guys, in addition to Grubhub, The Cheesecake Factory, Goldbelly, and Wine.com. This credit is distributed in $10 monthly increments, making it important to remember to use it each month.
Additionally, the card provides up to $120 in Uber Cash annually, also split into $10 monthly credits, which can be used for Uber rides or Uber Eats orders. This benefit is particularly advantageous if you regularly use Uber services.
Assessing the Value of the Amex Gold Card
When considering whether the Amex Gold Card is worth its $325 annual fee, it’s crucial to evaluate how effectively you can utilize its benefits. In theory, the combined value of the dining credits, Uber Cash, Resy credit, and Dunkin’ credit totals up to $424 per year. This is more than enough to cover the annual fee, but the key lies in whether you can consistently take advantage of these perks.
For instance, the $120 dining credit and $120 Uber Cash are easy to use if you already dine out or use Uber regularly. However, if you’re not a frequent Uber user or don’t often dine at the restaurants included in the dining credit list, you may find yourself spending more just to utilize these credits. Similarly, if Dunkin’ isn’t part of your daily routine, the $84 annual credit might go unused, diminishing the card’s overall value.
The Resy credit is another valuable addition, but it also requires you to be proactive in using it within the stipulated timeframe. If you’re someone who forgets to use credits or finds it cumbersome to track them, the Amex Gold Card’s benefits might be challenging to maximize.
Final Thoughts: Is the Amex Gold Card Right for You?
Ultimately, the decision to keep or apply for the Amex Gold Card hinges on your spending habits and how well they align with the card’s benefits. If you’re a foodie who frequently dines out, enjoys gourmet coffee, and uses Uber regularly, the card offers significant value that can easily outweigh the annual fee. Additionally, if you spend heavily on groceries, the 4x points on supermarket purchases can add up quickly, making it a strong contender for everyday spending.
However, if you find yourself stretching to utilize the card’s credits or if your spending patterns don’t match the categories that earn the most rewards, you might not get as much value from the card as you’d hope. In such cases, the annual fee could outweigh the benefits, making it worth considering other cards that better fit your lifestyle.
In summary, the Amex Gold Card remains a valuable option for those whose spending habits align with its rewards structure and benefits. If you can maximize the card’s offerings, the recent fee increase is more than offset by the potential rewards. But if you’re uncertain about consistently using the benefits, it might be wise to explore other options or reconsider how the Amex Gold Card fits into your overall financial strategy.
