American Express credit cards are a great option if you’re looking to get something extra when spending money. But with some free options and others attached with a fee, we look at how to pick the best American Express card and if the cost is worth it.
Depending on your circumstances, you may be better off making use of 0% purchase or 0% balance transfer credit cards, if you want to clear debt. But, if you are looking to get something back on your spending, then American Express cards offer you the opportunity to earn rewards for each pound you spend.
These cards come in all sorts of different forms, from cashback credit cards to rewards credit cards. So which are the best American Express credit cards, what do you get, and how can you maximise your returns from them?
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The best American Express Cashback Credit Card
We will start by taking a look at the two cashback credit cards on offer from American Express.
As the name suggests, these cards offer you the chance to earn cashback on the money you spend. It’s a flexible option, since you can then use that cashback in whatever way you like, whether that’s covering household bills or cutting the cost of next year’s holiday.
There are two main options to consider:
The American Express Cashback Everyday Credit Card
The credit card offers the best cashback return. New customers can earn 5% cashback on up to £125 in the first five months of being a cardholder. This deal has improved from cashback being capped at £100, and the return only being available for three months.
There is a variable rate of cashback after that point. You will get 0.5% when spending less than £10,000 or 1% for spending levels above £10,000.
Crucially there is no annual fee, so you get to keep every penny of cashback that you accrue.
The American Express Platinum Cashback Credit Card
The Platinum Cashback credit card is the premium option when it comes to cashback credit cards from American Express.
Over the first three months with the card, you get 5% cashback on the money you spend, up to a maximum of £125 in cashback. Plus, the card has a £25 bonus cashback – neatly balancing out the £25 annual fee. The rate you get after that varies based on how much you spend over the year. If you spend less than £10,000 then you will get a rate of 0.75% cashback, while spending above that level will mean a rate of 1.25%.
However, the downside to consider is that it comes with an annual fee of £25 which will eat into any cashback that you earn.
WHICH IS THE BEST AMERICAN EXPRESS CASHBACK CREDIT CARD FOR ME?
Determining the best American Express cashback credit card for you all comes down to how much you are likely to spend on the card. There’s no point opting for the fee-charging card if you are unlikely to earn enough cashback to leave you with much cash after the annual fee is accounted for.
For example, let’s say you spend £2,000 a month on your card. With the American Express Platinum Cashback card you’ll earn £350 in cashback in the first year, though that will drop to £325 after the fee is accounted for. By contrast, you’d finish the year with £280 with the Platinum Everyday card after the first year.
Remember, credit cards are just one way to earn cashback on your spending. You can also boost your cashback through using cashback websites or opting for certain bank accounts.
The best American Express Avios Credit Card
A host of American Express credit cards enable you to earn Avios from your spending. Avios ‒ what used to be known as airmiles ‒ can be used to reduce the cost of your next flight or holiday with British Airways.
Two cards are directly linked with the scheme, while a third offers reward points which can be converted into Avios.
British Airways American Express Credit Card
The British Airways American Express credit card allows you to earn one point for every £1 you spend on the card.
There is also the ability to earn bonus points. There are 5,000 bonus points available if you spend £2,000 on the card in the first three months.
A further selling point is that the card does not have an annual fee so every pound you spend goes directly towards earning Avios.
British Airways American Express Premium Plus Credit Card
An alternative option is the British Airways American Express Premium Plus credit card, which offers an improved rate of 1.5 Avios for every £1 spent.The bonus points are much more significant too, with 30,000 Avios on offer if you spend £6,000 in the first three months with the card.
If you refer a friend, then there’s a beefier 9,000 bonus points available if they are accepted, too.
There is a significant downside to bear in mind, though, in the shape of a £300 annual fee.
American Express Preferred Rewards Credit Card
The Preferred Rewards credit card is a little different, in that when you spend on the card you earn ‘membership reward’ points. These can be directly converted into Avios on a 1-to-1 basis.
The Preferred Rewards card offers one point per £1 spent, rising to two points per £1 when spending with airlines and three points when spending on American Express travel. There are also 20,000 bonus points available, plus an extra 5,000 points when you spend £3,000 in the first three months.
According to the credit card provider, this card offers additional benefits worth up to £400 a year. This includes airport lounge passes worth up to £168 and access to exclusive experiences.
However, there is also a significant annual fee of £195, though this is waived in the first year.
Which is the best American Express Avios Credit Card for me?
Again, the right card will ultimately come down to your spending habits. The more you spend on the card, the better value the Premium Plus card becomes, since the greater gain of Avios points will counter the annual fee.
Again, let’s take the example of someone spending £2,000 a month. With the basic British Airways American Express card, they will earn 29,000 Avios, just shy of the 30,000 needed for an off-peak economy flight to the Caribbean.
With the Premium Plus card, that same spending would see you earn 61,000 Avios (thanks to the bonus offer), which could get you premium economy flights to New York, for example, though there is the annual fee to pay.
The Preferred Rewards card is a bit of a middle ground, offering a slightly improved rate of return than the basic American Express card, with the option of dodging the annual fee for the first year.
It’s also worth bearing in mind that other credit cards offer Avios rewards, such as those from Barclaycard, while you can also boost your Avios balance by opting for specific bank accounts.
Other American Express Credit Cards to consider
American Express offers a handful of other credit cards tied to specific reward schemes or brands. If you are consistent users of these firms then you may be best off opting for one of these cards.
For example, the American Express Nectar credit card allows you to earn two Nectar points on spending (rising to three points with Nectar partner firms). You can bag a bonus of 20,000 further points if you spend £2,000 in the first three months with the card, while the annual fee of £30 is waived in the first year.
There’s also the Marriott Bonvoy American Express credit card, which offers two points on each £1 you spend, moving to six points when you spend on eligible Marriott properties. There’s an annual fee of £95 to consider though. You can also earn an introductory bonus of 20,000 points when you spend £3,000 in the first three months.
Get the most from your American Express Card
Whichever American Express card you go for, if you want to make the most of the ability to earn rewards you’ll need to put as much of your usual spending each month as possible on the card. This can be a little trickier with American Express cards since they are not accepted by all retailers, but enough retailers do to allow you to put a significant portion of your spending on the card and maximise your returns.
However, it’s important that you do not view this as a reason to spend more than usual each month. Rewards credit cards only benefit shoppers who can clear their balance in full every month, otherwise the interest charged on any outstanding balance will quickly eat into the value of the rewards you’ve earned.
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