American Express Gold Rewards Card Review
Pros
- Welcome bonus: Attractive welcome bonus points upon meeting minimum spending requirements
- Reward points: Earn 2 points per dollar on eligible travel, gas, grocery, and drugstore expenses
- Flexible redemption: Multiple options for redeeming points, including travel, merchandise, and gift cards
- Travel benefits: Comprehensive travel insurance coverage and hotel benefits with The Hotel Collection
- No foreign transaction fees: Save on fees when making purchases in a foreign currency
Cons
- Annual fee: $150 yearly fee, which may be high for some users
- Limited acceptance: American Express cards aren’t as widely accepted as Visa or Mastercard
- High minimum income requirement: $12,000 minimum personal income or $0 minimum household income needed for approval
- No bonus categories within Canada: Rewards are fixed at one-to-one ratio for every purchase except in the 1.2 bonus-rate category
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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 Gold Rewards Card has earned a 4.67 DollarWise Rating out of 5. This score is based on a weighted average of the two highest scoring factors (excluding acceptance and approval).
4.7
Rewards
0.5
Fees
3.5
Perks
2.7
Interest rates
4.6
Insurance
4.0
Acceptance
2.5
Approval
The highest scoring categories for the American Express Gold Rewards Card are rewards and insurance.
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 Gold Rewards Card the most important factors for scoring this card are its rewards and insurance.
Rewards
With the American Express Gold Rewards Card, here’s the rates at which you earn rewards for different spending categories per dollar you spend:
| Bills | 1 point |
| Pharmacy | 2 points |
| Gas | 2 points |
| Groceries | 2 points |
| Restaurants | 1 point |
| Specific Stores | 1 point |
| Travel | 2 points |
| All Other Spend | 1 point |
Calculating your annual rewards
We estimate that spending $2,000 per month with the American Express Gold Rewards Card would earn $684 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:
| Pharmacy | $24 |
| Gas | $96 |
| Groceries | $240 |
| Travel | $48 |
| All Other Spend | $276 |
Our study investigating the value found that each dollar spent on the American Express Gold Rewards Card is worth up to $0.02, depending on how you redeem.
This $684 in rewards value puts the American Express Gold Rewards Card in the top 10% 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 Gold Rewards Card earns $684 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.
| Spend | This Card | Average |
|---|---|---|
| Bills | 2.00% | 1.25% |
| Pharmacy | 4.00% | 1.17% |
| Gas | 4.00% | 1.48% |
| Groceries | 4.00% | 1.71% |
| Restaurant | 2.00% | 1.53% |
| Store | 2.00% | 1.94% |
| Travel | 4.00% | 1.19% |
| Other | 2.00% | 1.08% |
| Redemption method | Annual rewards |
|---|---|
| Transfer to partner airlines | $684 |
| Fixed points travel | $599 |
| Transfer to partner hotels | $397 |
| Redeem for travel | $342 |
| Apply to statement credit | $342 |
| Ticketmaster | $342 |
| Charity | $342 |
| Gift cards | $263 |
| Amazon.ca | $239 |
| Merchandise | $233 |
For an annual spend of $24,000, we estimated annual rewards value at up to $684.
That’s equivalent to a 2.85% return on spending.
The American Express Gold Rewards Card has an annual fee of $250. After deducting this, we predicted net annual rewards of $434.
This puts it in the top 20% of credit cards for net rewards after fees.
In comparison, the average card earns net annual rewards of $254.
Fees
The American Express Gold Rewards Card has a $250 annual fee.
The average card charges $85. So, the American Express Gold Rewards Card is in the top 10% 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 Gold Rewards Card scored a 3.5 out of 5 for perks, putting it in the top 10% of cards.
The average card scores 1.6 out of 5 for perks.
Interest Rates
| Purchase | 20.99% |
| Cash Advance | 21.99% |
| Balance Transfer | N/A% |
The average (median) credit card has a purchase interest rate of 19.99% and so the American Express Gold Rewards Card charges 1% more than the average.
For cash advances it costs 21.99% compared to the average of 19.96%.
Testing the American Express Gold Rewards Card with a $2,000 starting balance, you can see in the graph how the 1% more in interest rates impacts the interest over a year, compared to the average card.
Insurance coverage
| Insurance | This Card | Average |
|---|---|---|
| Extended Warranty | 1 year | 1 year |
| Purchase Protection | 90 days | 90 days |
| Travel Accident | $500,000 | $500,000 |
| Emergency Medical Term | 15 days | 15 days |
| Trip Cancellation | $1,500 | $1,500 |
| Trip Interruption | $1,500 | $2,000 |
| Flight Delay | $500 | $500 |
| Baggage Delay | $500 | $500 |
| Lost or Stolen Baggage | $500 | $1,000 |
| Rental Car Theft & Damage | Yes | No |
| Hotel Burglary | $500 | $1,000 |
We scored it 4.6 out of 5 for insurance.
It offers 11 types of insurance, whereas the average card has 5 types of coverage.
Approval and qualifying
| Do I qualify? | |
|---|---|
| Estimated Credit Score | 760 – 900 |
| Personal Income | $0 |
| Household Income | $0 |
| Fees | |
|---|---|
| Annual Fee | $250 |
| Extra Card Fee | $0 |
| Card type | AMEX |
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 Gold Rewards 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 Gold Rewards Card is a popular choice among Canadians searching for a credit card that offers competitive rewards rates and luxurious benefits.
This review will cover the card’s earning potential, four main benefits, two drawbacks, and additional information that may help you decide if this card is right for you.
Earning potential
With the American Express Gold Rewards Card, users earn 2 Membership Rewards points for every dollar spent on eligible travel purchases (e.g., flights, hotels, car rentals, and vacation packages), grocery stores, gas stations, and drugstores in Canada.
Additionally, users earn 1 Membership Reward point for every $1 spent on all other eligible purchases. This flexible rewards structure allows cardholders to efficiently accumulate rewards points in various spending categories.
Benefits
- Welcome bonus: The first major advantage of this card is its generous Welcome Bonus. New American Express Gold Rewards Card members can earn up to 25,000 Membership Rewards points after spending $1,500 within the first three months of card membership.
These points can be redeemed for various rewards such as travel, merchandise, or gift cards. - Membership rewards program: The second major advantage of this card is its competitive rewards program.
Cardholders have access to various redemption options through the Membership Rewards Program, which allows them to redeem points for travel, merchandise, gift cards, or even to pay off their account balance using points. - Travel insurance coverage: The third major advantage of this card is the valuable travel insurance coverage it provides.
Cardholders enjoy extended warranty and purchase protection, travel accident insurance, trip interruption and flight delay coverage, lost/stolen baggage insurance, as well as hotel burglary and car rental theft/damage protection. This comprehensive coverage package can provide peace of mind when planning a trip. - No pre-set spending limit: The fourth major advantage of this card is the no pre-set spending limit feature. This offers cardholders the flexibility to spend above their credit limit without incurring over-limit fees, ensuring they can make large purchases when needed, subject to account approval.
Drawbacks
- High Annual Fee: One significant drawback of the American Express Gold Rewards Card is the high annual fee of $150. Unlike some other cards, the fee is not waived for the first year. Users should carefully consider whether they will accumulate enough rewards to justify this annual cost.
- Limited Merchant Acceptance: Another significant drawback of this card is that not all merchants accept American Express as a payment option. This may limit cardholders’ ability to maximize their rewards earning potential in certain situations.
Additional information
The American Express Gold Rewards Card offers benefits and exclusives through Amex Offers and Front of the Line, which includes access to reserved tickets, unique experiences, and pre-sale events. Additionally, the card offers a $50 travel credit (or 5,000 Membership Rewards points) once per year, which can partially offset the annual fee.
In conclusion, the American Express Gold Rewards Card is an attractive option for Canadians seeking a card that earns competitive reward points and offers robust travel insurance coverage. However, potential cardholders should consider the high annual fee and limited merchant acceptance when making their decision.
Interested in other credit cards? If the American Express Gold Rewards Card credit card isn’t perfect for you, you might want to consider the SimplyCash Card American Express. Plus, many Canadian’s that like the American Express Gold Rewards Card like the Marriott Bonvoy American Express Card, and the American Express Aeroplan Card.
FAQ
Key benefits
- Stellar Welcome Offer: Generous bonus points after satisfying initial spending criteria
- Enhanced Earning Potential: 2 points per dollar spent on qualifying travel, fuel, groceries, and pharmacy purchases
- Adaptable Rewards System: Redeem points for diverse options like vacations, products, or gift vouchers
- Upgraded Travel Experience: Comprehensive trip insurance and elite Hotel Collection perks
- Zero Foreign Transaction Costs: Avoid extra charges when spending in non-Canadian currency
- Customer Care Excellence: Renowned American Express service quality and support
- Charitable Giving: Ability to donate points to participating charitable institutions
- Supplementary Cards: Option to add authorized users for increased rewards pooling
- Fraud Protection: Advanced security features monitoring suspicious transactions and safeguarding against fraud
- Mobile App Convenience: User-friendly interface for account tracking, reward redemption, and alerts
- Occasional Promotions: Access to limited-time offers, discounts, and exclusive events
- Green Choice: Digital statements and billing for an eco-friendly approach
