American Express Gold Rewards Card review

How the Gold Rewards Card earns points

The American Express Gold Rewards Card spreads a 2x rate across four broad categories instead of concentrating it in one. Groceries, gas, travel and dining all earn 2 Membership Rewards points per dollar, and everything else earns 1 point. Because most household spending lands in one of those categories, it works well as a main card.

Here’s an example. A household spending $600 a month on groceries, $200 on gas, $400 on travel and dining, and $800 on everything else would earn 1,200, 400, 800 and 800 points respectively. That’s 3,200 points a month, or 38,400 points a year.

The welcome offer

New cardholders can earn up to 75,000 Membership Rewards points. The “up to” wording means the full amount depends on meeting the offer’s conditions, which aren’t detailed here, so check exactly what’s required, and by when, on the American Express website before you apply.

Whatever the conditions, those 75,000 points come on top of regular earning. For the example household above, that’s roughly two years’ worth of points from everyday spending.

Getting value from Membership Rewards

Membership Rewards points can be transferred to airline and hotel partners, which gives you more ways to use them than a program tied to a single airline. That flexibility is the main reason to choose the Gold Rewards Card over a cash back card with a similar fee.

The card also includes a $100 annual travel credit and access to Amex Offers. Used every year, the travel credit cuts the effective cost of the card from $250 to $150.

Fees, interest and the fine print

The annual fee is $250. If you use the full $100 travel credit, your net cost is $150 a year, or $12.50 a month. If you don’t travel enough to use the credit, you’re paying the full fee for a 2x earn rate.

Purchases in a foreign currency carry a 2.5% foreign transaction fee, so $1,000 of spending abroad adds about $25. That fee works against the 2x travel rate when you’re actually outside Canada. Purchases and cash advances are both charged 21.99% interest, and paying the full balance by the due date avoids purchase interest.

Insurance coverage

The Gold Rewards Card includes a travel-focused insurance package that covers the most common trip problems. Limits, eligibility rules and exclusions are in the insurance certificate, so read it before you rely on any coverage.

• Travel emergency medical
• Trip cancellation and interruption
• Car rental theft and damage
• Flight and baggage delay

Who it suits, and who should look elsewhere

The Gold Rewards Card suits people whose spending is spread across groceries, gas, travel and dining, who want transferable points, and who will use the $100 travel credit every year.

It’s a weaker choice if your spending is concentrated in one category, where a card with a higher rate in that category would earn more, or if you often pay in foreign currencies. You’ll also want a backup Visa or Mastercard for merchants that don’t take American Express.

How it compares

The American Express Cobalt Card also earns Membership Rewards points, with 5 points per dollar on eats and food delivery for a $191.88 annual fee. If restaurants and delivery make up most of your spending, the Cobalt earns more points there for a lower fee, while the Gold Rewards Card spreads its 2x rate across groceries, gas, travel and dining.

If you want to collect Membership Rewards without an annual fee, the American Express Green Card costs nothing to hold and earns 1 point per dollar on all purchases, with a welcome offer of up to 10,000 points. You give up the Gold’s 2x categories in exchange for paying no fee.

Before you apply

The recommended credit score is 720 or higher, and American Express decides using your full credit profile. Rates, fees and the welcome offer change from time to time, so confirm the current terms on the American Express website before you apply.