Amex Gold vs Chase Sapphire Preferred: Which Card Offers the Best Deal?
If you’re considering applying for a credit card, particularly between the Amex Gold and Chase Sapphire Preferred, you’ve come to the right place. Navigating through the plethora of credit card options available today can be daunting. It’s not that you lack clarity on what you desire; rather, the challenge lies in the abundance of choices, many of which appear strikingly similar in features and benefits.
Chase and American Express are both well-respected financial institutions, and their travel and dining credit cards often share overlapping features. In this review, we will delve deep into a comprehensive comparison of the Amex Gold and Chase Sapphire Preferred cards to help you determine which aligns better with your lifestyle and spending habits. Although both cards have their unique advantages, one may stand out more for your specific needs. Let’s explore each card to aid in your decision-making process.
Table of Contents
- Amex Gold Credit Card
- How to Use Amex Gold Credit Card
- Ways to Earn with Amex Gold
- Factors to Consider when Applying for Amex Gold
- Chase Sapphire Preferred
- How Chase Sapphire Preferred Works
- Ways to Earn with Chase Sapphire Preferred
- Amex Gold vs Chase Sapphire Preferred: Top Differences
- 1. Eligibility
- 2. Annual Fee and Interest
- 3. Welcome Offer and Rewards
- 4. Security
- 5. Redeeming Points
- Amex Gold vs. Chase Sapphire Preferred: Which One is Better?
- FAQs
- What are Chase Ultimate Rewards?
- How many points per dollar do you get with Amex Gold?
- Which is the best card for online grocery purchases?
Amex Gold Credit Card
The Amex Gold Card is a popular mid-tier travel and dining credit card offered by American Express. It comes with an annual fee of $250 and allows cardholders to earn Membership Rewards points on eligible purchases. This card is particularly appealing to U.S. consumers seeking generous rewards for spending at supermarkets and restaurants.
With a robust earning structure, attractive travel perks, and a host of additional benefits, the Amex Gold Card is crafted to meet the needs of avid diners and travelers. Plus, its metal design adds a touch of luxury that many cardholders appreciate.
Before you decide to apply for the Amex Gold Card, here are several key points to consider:
How to Use Amex Gold Credit Card
The Amex Gold Card rewards users with points for every dollar spent on travel and dining. These points can be redeemed for a variety of experiences, including statement credits, free hotel stays, and airfare. Cardholders also have the option to shop at the Membership Rewards store or transfer points to Amex’s airline partners.
One of the benefits of the Amex Gold Card is its user-friendly nature; you don’t need to be a points expert to earn and redeem rewards. However, it’s essential to note that the value of your points can vary depending on how you redeem them, typically ranging from 0.5 cents to 1 cent per point.
Ways to Earn with Amex Gold
The Amex Gold Card provides multiple opportunities for accumulating points:
- 4x Points: Earn 4x points at restaurants worldwide and U.S. supermarkets (up to $25,000 per year, followed by 1x for amounts exceeding that).
- 3x Points: Get 3x points on flights booked directly with airlines or through amextravel.com.
- 1x Point: Earn 1x point on all other eligible purchases.
Additionally, there are two strategies to enhance your points earnings:
- $120 Dining Credit: Receive statement credits of up to $10 per month when using your card at eligible restaurants, on top of the 4x points earned.
- Welcome Bonus: Earn 60,000 points after spending $4,000 within the first six months of card membership, which can equate to up to $600 in travel when redeemed through Amex Travel.
Factors to Consider when Applying for Amex Gold
Your Credit Score Matters
The Amex Gold Card is classified as a charge card, requiring full payment of the monthly balance. If you tend to carry a balance on your credit cards, this may not be the most suitable option for you. Approval for the Amex Gold Card typically necessitates an excellent credit score, generally ranging from 690 to 850, making it less accessible for those with lower scores.
Existing Credit Cards
It’s important to note that the welcome bonus for the Amex Gold Card is available only once per specific card. If you have had an Amex Gold card in the past, you will not be eligible for the welcome bonus again. Additionally, if you currently possess another American Express charge card, you may also be ineligible for the bonus.
Your Lifestyle
When applying for a credit card, it is crucial to choose one that aligns with your lifestyle. The Amex Gold Card is tailored for individuals who frequently dine out or travel. If these activities are not a significant part of your life, you may not maximize the benefits offered by this card.
Chase Sapphire Preferred
The Chase Sapphire Preferred is a premium travel card that provides a high return on travel and dining expenses. This card rewards users with Ultimate Rewards points for their purchases, which can be redeemed in various ways, making it a flexible option for cardholders.
With an annual fee of $95, the Chase Sapphire Preferred offers valuable rewards that can easily justify the cost. If you seek a card with greater flexibility in redeeming points, the Chase Sapphire Preferred may be a better choice compared to the Amex Gold Card.
Before applying for the Chase Sapphire Preferred, consider the following:
How Chase Sapphire Preferred Works
Similar to other travel and dining credit cards, the Chase Sapphire Preferred allows cardholders to earn points on every dollar spent on qualifying purchases. Points can be redeemed for cash back, gift cards, or travel through the Ultimate Rewards portal at a value of 1:1. However, redeeming points for travel through the Ultimate Rewards portal grants a 25% bonus, meaning 100 points can be worth $1.25 when spent on travel.
Another attractive feature of this card is the ability to transfer points to 13 airline and hotel partners at a 1:1 ratio, providing excellent value depending on which partners you choose to utilize.
Ways to Earn with Chase Sapphire Preferred
The earning structure for the Chase Sapphire Preferred is as follows:
- 5x Points: Earn 5x points on travel purchases made through Chase Ultimate Rewards.
- 3 Points: Get 3 points on dining worldwide, streaming services, and online grocery purchases.
- 1x Point: Earn 1x point on all other eligible purchases.
The card also boasts an attractive welcome bonus: earn 60,000 points if you spend $4,000 within the first three months of opening your account, which can translate into approximately $750 in travel when redeemed through Chase Ultimate Rewards.
Additionally, cardholders can transfer rewards from other Chase cards, expanding the options available for redeeming points.
Amex Gold vs Chase Sapphire Preferred: Top Differences
Having explored both cards, let’s delve into their key differences to determine which one may be a better fit for you:
1. Eligibility
The eligibility criteria for these two cards vary significantly. The Amex Gold Card requires a minimum credit score of 690, categorizing it as suitable only for those with excellent credit. In contrast, the Chase Sapphire Preferred is more lenient, allowing applicants with credit scores as low as 640 to qualify.
2. Annual Fee and Interest
The Amex Gold Card carries a $250 annual fee, whereas the Chase Sapphire Preferred has a lower fee of $95. However, the Amex Gold’s annual fee is somewhat offset by up to $120 in dining credits, effectively reducing the cost to around $130. Both cards charge a cash advance fee of either $1 or 5% of the total amount borrowed, with no foreign transaction fees. Their APR rates are also comparable, ranging from 18.24% to 25.24%.
3. Welcome Offer and Rewards
When it comes to welcome offers and rewards, significant differences emerge. The Amex Gold Card offers 4x points on eligible supermarket purchases (up to $25,000 annually) and 3x points on flights booked directly with airlines or through Amex Travel, with 1 point for other purchases.
The Chase Sapphire Preferred, on the other hand, provides 5x points for travel purchases through Chase Ultimate Rewards and 3x points on dining. It offers a similar 1 point for other eligible purchases. The welcome bonus for the Amex Gold is 60,000 points after spending $4,000 in the first six months, while the Chase Sapphire Preferred offers the same bonus after spending the same amount within the first three months.
4. Security
Both cards incorporate robust security features, but they have some distinctions:
Amex Gold Card
- Fraud Protection: Provides built-in protection against identity theft, with real-time monitoring and alerts for suspicious activity.
- Purchase Protection: Offers safeguards against unauthorized purchases through a combination of Purchase Protection, SafeKey technology, and Return Protection.
- Global Assistance Hotline: Available 24/7 for emergencies while traveling, ensuring peace of mind far from home.
- Contactless Payments: Features contactless technology for convenient and secure transactions.
Chase Sapphire Preferred
- Fraud Monitoring: Provides real-time alerts for any suspicious card activity, ensuring your account remains secure.
- Zero Liability Protection: You are not responsible for unauthorized charges, offering additional peace of mind.
- Chip Security: Equipped with a chip to protect your identity and account information against fraud.
5. Redeeming Points
Both the Amex Gold and Chase Sapphire Preferred cards offer various redemption options, but the methods and flexibility differ:
Amex Gold Card
Points can be redeemed for travel through amextravel.com, transferred to one of Amex’s airline partners, or used for cash back, gift cards, or shopping at select retailers. Cardholders can transfer points to around 20 partners, including airlines like British Airways and Delta, and hotel programs like Hilton and Marriott.
Chase Sapphire Preferred Card
Redemption options include booking travel through the Chase Ultimate Rewards portal, transferring points to one of Chase’s 14 airline and hotel partners, or redeeming for cash back and other rewards. Chase also offers a “Pay Yourself Back Tool,” allowing users to redeem points for eligible everyday purchases.
Amex Gold vs. Chase Sapphire Preferred: Which One is Better?
Deciding between these two cards can be challenging, as both offer compelling features. The Amex Gold Card excels in rewards for dining and supermarket purchases, while the Chase Sapphire Preferred shines for frequent travelers seeking flexibility in redeeming points. Ultimately, your decision should be based on your personal spending habits and preferences.
If you prioritize rewards for dining and shopping, the Amex Gold is likely the better option. Conversely, if you travel often and need a card that provides excellent travel-related benefits, the Chase Sapphire Preferred may be the ideal choice. Both cards also feature robust security measures, ensuring your financial safety, regardless of your selection. If you’re still uncertain, consider applying for both cards to maximize your rewards and benefits.
FAQs
What are Chase Ultimate Rewards?
Chase Ultimate Rewards are loyalty points earned through select Chase credit cards. These points can be redeemed for cash back, gift cards, travel, and more. For example, cardholders of the Chase Sapphire Preferred earn 5x points on travel and 3x points on dining.
How many points per dollar do you get with Amex Gold?
With the Amex Gold Card, cardholders earn 4x points at supermarkets, 4x points on dining, 3x points on flights booked directly with airlines, and 1 point for every other eligible purchase, emphasizing its strong focus on dining and supermarket rewards.
Which is the best card for online grocery purchases?
While both cards provide rewards for grocery shopping, the Amex Gold Card offers a more attractive deal, providing 4x points on eligible purchases, compared to the 3x points offered by the Chase Sapphire Preferred.
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