$900 FOR A CREDIT CARD?!? CAN THE NEW AMERICAN EXPRESS PLATINUM CARD BE WORTH IT?
Craig Turck
9/22/20255 min read
Introduction
The latest bank to alter their premium card offer is American Express with their Platinum Card. They are making a clear shift toward a more affluent cardholder base by increasing the annual fee and the benefits that come with it. Their focus seems to be more on value through credits than through points accumulation. American Express continues to offer the same benefits with the card it has over the past couple of years, and it has increased some credits and added new ones to make it more attractive. They boasted over $1,400 in value with the prior version of the card, and now they boast over $3,500 in value. Is it still the right card for you? Does this make it the right card for you now? Let’s have a look.
This article covers:
Increased Annual Fee
New Benefits
Hotel Credit
Resy Credit
Uber One Credit
Digital Entertainment Credit
lululemon, Equinox and Oura Ring Credits
Leading Hotels of the World Status
Points Multipliers
Analysis and Summary
Increased Annual Fee
Just when their annual fee began to look relatively reasonable, American Express increased it to a whopping $895, more than any other card on the open market. This is a $200 increase from their previous fee of $695. Their plan is to lure more cardholders in with the increased benefits of the card, irrespective of whether those benefits are used. In a separate article, I compared the premium card offers available in the market. This article, "Which Premium Credit Card is the Best?", has been updated with the new American Express Platinum Card offer.
New Benefits
The card comes with a host of additional and increased benefits which may or may not justify the increased annual fee, depending on individual circumstances. This article highlights each of these benefit changes.
Hotel Credit
The hotel credit has increased from $200 annually to $300 semiannually for hotels booked through American Express Travel. This represents an increased credit of $400 available for those traveling frequently enough to take advantage of it.
Resy Credit
American Express has added $400 in credits when using the Platinum Card to dine at restaurants in their Resy network. These are divided into four quarterly credits of $100 each. The credits are easy to use; simply enroll your card in the program, then use your Platinum Card to pay for a meal at one of the restaurants in the Resy network, whether dining in or carrying out.
Uber One Credit
Also new is a $120 Uber One credit. This credit is just enough to completely offset a monthly Uber One membership. Uber One members receive a $0 delivery fee plus up to 10% off eligible orders on restaurants and stores marked with the Uber One icon. In addition, Uber One members receive 6% back in Uber One credits for all Uber rides.
Digital Entertainment Credit
American Express has increased their monthly digital entertainment credit from $20/month to $25/month. They also increased the entertainment providers to now include The New York Times, Paramount+, The Wall Street Journal, YouTube Premium, and YouTube TV.
lululemon, Equinox and Oura Ring Credits
Several enhancements reflect a focus on health and fitness. Cardholders now receive a $75 quarterly credit with athletic apparel retailer lululemon, a $300 annual credit with luxury fitness chain Equinox, and a $200 annual credit with Oura Ring, a smart ring for fitness, stress, sleep and health.
Leading Hotels of the World Status
Perhaps the most interesting new benefit that comes with the Platinum Card is Leaders Club Sterling status from The Leading Hotels of the World. This organization represents over 400 independent luxury hotels, known for their unique character and exceptional service. This, more than anything else, reflects the shift Amex is making to attract more affluent cardholders.
Leaders Club Sterling status includes 5 pre-arrival upgrades annually, a 5% increased stay points bonus, daily breakfast for two, early check-in and late-check out among other benefits. Hotel stays are the only way to earn Leaders Club points which can be used toward future free stays. The points carry significant value, though, with some rooms starting at less than 4,000 points per night.
Point Multipliers
Disappointingly, American Express did not change the points multipliers for this card. This means that multipliers can only be achieved when booking hotels or flights through American Express Travel (5x points each). Otherwise, all purchases earn only one point per dollar spent.
Analysis and Summary
American Expressed has upped the ante with their new version of the Platinum Card, introducing a host of new benefits in exchange for an increased annual fee. Before the change, they boasted more than $1,400 in value. Now, they boast more than $3,500.
The table below shows, in the left-hand column, the key benefits and credits associated with the card before the change, all of which continue. In the right-hand column are the new and enhanced benefits.
If you already hold the Platinum Card from American Express, you likely have already done the analysis to determine if the card benefits are worth the $695 annual fee. To determine whether the card is worth keeping, you only need to assess whether the new and enhanced benefits are worth the added cost of $200.
If you are considering adding the Platinum Card to your portfolio, your assessment should weigh all benefits against the total annual cost of $895. I provide an example of this type of assessment in my article “Is the New Chase Sapphire Reserve Card Worth Keeping?” If you would like help with this assessment, or with determining which credit cards are best for you, select the Contact button below and we can arrange a free, no obligation call to develop the right recommendation for you.
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