American Express® Credit Cards of February

American Express credit cards are known for offering many bonuses for cardholders with different needs. Before applying for an AmEx credit card, you should familiarize yourself with what types of AmEx credit cards there are, how to choose the right card, and apply for its receipt.

Types of AmEx credit cards

AmEx credit cards can be divided into 3 main types.

1. Travel credit cards.

   This type of credit card from American Express is represented by 3 "classic" cards: Green Gold Platinum Cards. Since these 3 cards belong to different American Express card levels, they offer various bonuses. The Green Card is the lowest level card, followed by the Gold Card and the Platinum Card Premium is the most high-tiered in its category. These cards are aimed at avid travelers and restaurant-goers. All 3 cards offer multipliers of the received Membership Rewards points in the travel and dining categories.

   Travel and dining category cards also include Hotel Cards and Airline Cards subcategory cards. These include, for example, Delta SkyMiles® Gold AmEx card and Hilton Honors Card. Such cards allow cardholders to have bonuses on flights and in hotels.

2. Rewards points credit cards. The Green, Gold, and Platinum cards are also Reward Points cards. However, besides them, cards like AmEx Everyday® Card and AmEx Everyday® Preferred Card also give rewards in bonus points. These cards allow cardholders to receive Membership Rewards points in daily spending categories. Unlike Travel Cards, these cards offer multipliers of rewards received in categories such as supermarkets and gas stations, not excluding receiving rewards for all other purchases. Moreover, the cardholder can receive more rewards with frequent use of the card.
3. Cash back credit cards. For these cards, there are Blue Cash Preferred® Card, Blue Cash Everyday® Card, and Cash Magnet Card. The major feature of such cards is that cardholders do not receive Membership Rewards points but cash back in the form of dollars. They can later be redeemed as a statement credit.

   Depending on a particular card, a cardholder can receive from 1% to 6% cash back in categories such as supermarkets, retail purchases, U.S. streaming subscriptions, gas stations, and transit purchases. At the same time, AmEx cash-back credit cards have either 1% or 1.5% cash back on purchases of all other categories.

How to choose AmEx credit cards?

When choosing a suitable American Express credit card for yourself, you need to pay attention to 3 key aspects: fees, bonuses, and APR.

• Fees. The main fee for American Express credit cards is the annual fee. Some of the company's options do not require payment of an annual fee. For example, an AmEx Green Card. Other options offer a $0 Intro annual fee for 1 year, after which the cardholder will have to start paying the annual fee. Such cards include, for example, Blue Cash Preferred Cards.

  Besides the annual fee, you should pay attention to the foreign transaction fee, late fee, returned payment fee, and cash advance fee. The amounts of all fees vary depending on the card.

• Annual percentage rate. Blue Cash Preferred Card, as well as several other cards from American Express, have a 0% intro APR period during which the APR on purchases and balance transfers is 0%. The maximum duration of this period among AmEx cards is 15 months. APR begins to accrue to the cardholder after the expiration of this period. Although the APR depends on the cardholder's credit score, some cards have a lower APR than others, so you should study this aspect.
• Welcome offers. When choosing a suitable card, you should pay attention not only to what bonuses and perks the card has but also to the welcome offer.

  Each AmEx credit card offers an additional bonus valid only for the first 6 months of Card Membership. Bonuses and welcome offers you should choose based on your needs. It all depends on whether you need travel bonuses or you would like to receive cash rewards from daily purchases.

The best AmEx credit cards

1. The Platinum Card. It is the best American Express card, not counting the Centurion Card, which can only be obtained by invitation.

   This card has an annual fee of $695. Platinum Card offers APR from 19.74% to 26.74%, depending on the cardholder's credit score. As a welcome offer, you can receive 100,000 bonus points after you spend $6,000 from the card in the first 6 months of the Membership card. Platinum Card cardholders receive 5 times more points on flights for up to $500,000 per year and prepaid hotels. In addition, the cardholder also receives bonuses at Walmart when buying subscriptions to streaming services and food delivery.

2. Blue Cash Preferred® Card. It is the best AmEx card for cash back. It has an introduction period of 12 months, during which the annual fee is $0, the APR on purchases and balance transfers is 0%, and the Pay Later Plan It fee is also $0. A new cardholder can receive $250 after spending $3,000 during the first 6 months of Card Membership. After the introduction period, the annual fee will be $95, the APR will be from 17.74% to 28.74%, and the Pay Later Plan It fee will be 1.33% of each purchase. This card offers a 6% cash-back earning rate in supermarkets and U.S. categories. Streaming subscriptions, 3% cash back on transit and gas purchases, and 1% cash back on other purchases.
3. Cash Magnet Card. This card can be considered the best American Express credit card for students. This card does not have an annual fee and offers the longest 0% Intro APR among all AmEx cards within 15 months. You can get $200 in the form of a statement credit if you spend $2,000 in the first 6 months after opening the card.

   After completing the 0% Intro APR period, the APR will be from 17.74% to 28.74%. Cash Magnet Card allows the cardholder to have 1.5% unlimited cash back on all purchases. This card is advantageous to use as a primary card, thanks to such a bonus.

Pros and cons of AmEx credit cards

Pros

• Some cards are suitable for both an individual and a small business owner.
• AmEx credit cards offer extremely profitable bonuses and perks.
• All cards have a welcome offer and do not have an annual fee.
• Some cards have neither APR nor other fees in the first year of use.
• The online AmEx application process allows future cardholders to find out if they are eligible without affecting their credit score.
• The Pay Over Time function allows the cardholder to pay only the minimum balance after the billing period ends and not receive interest accrual.

Cons

• AmEx cards are not accepted in all places.
• The annual fee for some cards is too high.
• The cards are only available for borrowers with good to excellent credit.
• Membership Rewards are not transferable points.

How to get an AmEx credit card?

Before you apply to open a credit card from American Express, pay attention to these qualifications and restrictions:

• Your credit score must be at least 670. Ideally, you should have a credit score above 700. Some cards require an excellent credit score that starts with a 740 FICO score.
• You cannot be approved for more than 2 credit cards within 90 days. The period between applying for the first and the second credit card must be at least 5 days.
• Your application may be rejected if you are under 21. There is still a chance to be qualified if you are over 18 and under 21.
• You must have a stable source of income and a low debt-to-income (DTI) ratio, which is calculated as your annual credit payments divided by your annual gross income.

To get pre-qualification from American Express, you need to:

1. Go to the American Express website, select the desired card and click "Apply Now".
2. Enter full name, email, date of birth, and phone number.
3. Enter your home address and SSN.
4. Fill in the amount of annual income.
5. Choose a source of income.
6. Get acquainted with all rates and terms.
7. Submit your application.

When you apply for pre-qualification, the company makes a soft credit check, so submitting a credit card opening application does not affect your credit score.