American Express Essential Credit Card Review

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Performance test results

At DollarWise, for each credit card we test 7 different factors including the rewards, value for money, perks, insurance, strengths and weaknesses of the card.

You can see our full testing methodology here to learn why we’re the most trusted source for credit card reviews.

The American Express Essential Credit Card has earned a 3.81 DollarWise Rating out of 5. This score is based on a weighted average of the two highest scoring factors (excluding acceptance and approval).

The highest scoring categories for the American Express Essential Credit Card are interest and fees.

These factors are weighted 70% to the highest scoring factor and 30% to the second highest score to get an overall review score.

This weighting allows us to judge cards on their merits and the customers they are designed for.

For the American Express Essential Credit Card the most important factors for scoring this card are its interest and fees.

Rewards

With the American Express Essential Credit Card, here’s the rates at which you earn rewards for different spending categories per dollar you spend:

Calculating your annual rewards

We estimate that spending $2,000 per month with the American Express Essential Credit Card would earn $0 in rewards over the year.

Our performance testing research uses an accurate estimation of the average Canadian households spending patterns to predict the rewards a card will earn.

We found that you’d earn this per category:

Our study investigating the value found that each dollar spent on the American Express Essential Credit Card is worth up to $0.00, depending on how you redeem.

This $0 in rewards value puts the American Express Essential Credit Card in the bottom 20% of credit cards in Canada based on rewards earned.

The average credit card in our database earns $337 in rewards for the same spend that the American Express Essential Credit Card earns $0 in rewards value.

We can compare this card to other options by looking at the earn rate by category.

This earn rate is the percentage return that you would get when you spend on this card, assuming you redeem at the predicted maximum value.

For example, if a card earned 5 points per dollar on gas and each point is worth up to $0.02, then the earn rate is 5 points multiplied by $0.02 each, divided by the dollar you spent.

In this example, that’s a 10% earn rate on gas.

For an annual spend of $24,000, we estimated annual rewards value at up to $0.

That’s equivalent to a 0.00% return on spending.

The American Express Essential Credit Card has an annual fee of $25. After deducting this, we predicted net annual rewards of $-25.

This puts it in the bottom 10% of credit cards for net rewards after fees.

In comparison, the average card earns net annual rewards of $254.

Fees

The American Express Essential Credit Card has a $25 annual fee.

The average card charges $85. So, the American Express Essential Credit Card is in the bottom 50% of cards based on the cost of the annual fee.

Perks

We manually review the perks of each credit card to determine how they compare to other cards.

The American Express Essential Credit Card scored a 0.6 out of 5 for perks, putting it in the bottom 20% of cards.

The average card scores 1.6 out of 5 for perks.

Interest Rates

The average (median) credit card has a purchase interest rate of 19.99% and so the American Express Essential Credit Card charges 7% less than the average.

For cash advances it costs 12.99% compared to the average of 19.96%.

Testing the American Express Essential Credit Card with a $2,000 starting balance, you can see in the graph how the 7% less in interest rates impacts the interest over a year, compared to the average card.

Insurance coverage

We scored it 2.1 out of 5 for insurance.

It offers 3 types of insurance, whereas the average card has 5 types of coverage.

Approval and qualifying

We scored it 2.5 out of 5 for approval.

We predict that you will require a credit score of at least 760 to qualify for the American Express Essential Credit Card, while the average card requires 652 to qualify.

This puts it in the top top 10% of cards by approval difficulty.

The personal income requirements are $0, while the average card requires $23,896.

This puts it in the top 50% of cards by the income required to qualify.

The American Express Essential Credit Card is designed for individuals looking for a card with competitive rewards and a solid set of benefits. In this comprehensive review, we will evaluate the earning potential, advantages, and drawbacks of the American Express Essential Credit Card.

Earning potential

This card offers a simple earning structure with a consistent reward rate across different spending categories. Cardholders can earn 1 point for every $1 CAD they spend on their card.

These points can be redeemed for a variety of options, such as merchandise, gift cards, travel, and more. Unlike other cards that may have bonus categories for dining, travel, or groceries, the American Express Essential Credit Card maintains a flat reward rate for all purchases.

Benefits

1. No Annual Fee: One of the most attractive features of this card is that it’s completely free to carry, with no annual fee. This allows users to take advantage of the rewards and benefits without worrying about offsetting the cost of an annual fee.
2. Low-Interest Rate: The card offers a relatively low-interest rate compared to many other credit cards on the market. Cardholders can enjoy this low rate on purchases, cash advances, and balance transfers. This feature can be especially appealing to users who sometimes carry a balance on their credit card.
3. Flexible Reward Redemption: As mentioned earlier, cardholders have a variety of options when it comes to redeeming their points. Whether they want to use their points towards travel, merchandise or gift cards, the flexibility provides added value and convenience to users.
4. Travel and Shopping Protection: Another advantage of this card is the suite of added protection benefits. From emergency medical coverage to purchase coverage and extended warranty, these benefits provide an extra layer of security when cardholders make purchases or travel.

Drawbacks

1. No Bonus Categories: While the flat reward rate may appeal to some users, those who spend a significant amount in specific categories like dining or travel may feel that they could earn more with other credit cards which offer higher rewards rates for these categories.
2. Less Acceptance than Other Cards: American Express cards can sometimes be less widely accepted than other credit card options like Visa or Mastercard, which may limit opportunities for earning rewards at certain merchants.

Conclusion

Overall, the American Express Essential Credit Card is a solid choice for individuals seeking a no-annual-fee, low-interest-rate card with flexible reward redemption options. While the card has some drawbacks, mainly in its lack of bonus categories and potentially restricted acceptance, the benefits provided may outweigh these downsides for many users.

As always, it’s crucial for individuals to carefully assess their spending habits and priorities before selecting the right credit card for their personal financial situation.

Interested in other credit cards? Canadians that like the American Express Essential Credit Card credit card also like the American Express Gold Rewards Card. If you’re looking for other options you should consider the American Express Aeroplan Reserve Card, and the American Express Green Card.

FAQ

Key benefits

• Flexible balance payment options
• Fraud protection guarantee
• Multiple authorized users permitted
• Preapproval for additional credit cards
• Mobile app for account management
• Customizable alerts and notifications
• Online account statements option
• Contactless payment via Amex Pay
• Access to presale concert and event tickets
• Complimentary shopping protections: Purchase and Buyer’s Assurance
• 0% interest on balance transfers for the first six months (conditions apply)