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Category: Credit Cards

  • AmEx Business Gold Card: New Features, Higher Annual Fee

    AmEx Business Gold Card: New Features, Higher Annual Fee

    The American Express Business Gold Card has been a steadfast choice for those seeking respectable returns on common business expenditures. AmEx just announced a significant refresh to this card, and while some will love the changes, others may be put off by removed benefits and a higher annual fee. Let’s dive right into what these changes mean for you.

    Higher Annual Fee

    First things first, let’s address the annual fee. Starting February 1, 2024, the Amex Business Gold Card’s annual fee will increase to $375 from its previous $295 (see rates and fees). It’s not uncommon for card updates to bring about fee hikes, and this change is no exception. For those looking to score a signup bonus on this card without forking over another $80, you’ve got a few more months to apply.

    Spending Category Changes

    The core feature of the AmEx Business Gold Card remains intact – you’ll still earn 4 points per dollar spent on your top two spending categories each billing cycle, capped at $150,000 in combined spending. However, there are some changes in the bonus categories.

    Two new bonus categories have been introduced:

    1. Transit purchases: This covers trains, taxicabs, ride-hailing services, ferries, tolls, parking, buses, and subways.
    2. Monthly wireless telephone service charges: Earn rewards for charges made directly with a U.S. wireless telephone service provider. This is a poor addition just as many wireless carriers drop discounts for those paying with a credit card, but keep reading for a workaround.

    However, to make room for these additions, two categories have been dropped from the bonus rewards list:

    1. Airfare purchased directly from airlines: AmEx seems to want to incentivize use of their own travel agency here.
    2. U.S. purchases for shipping: Depending on how you spend on shipping, the newly-added FedEx credits may offset the loss of bonus points for you.

    Extra Points on AmEx Travel

    On the bright side, the AmEx Business Gold Card will now reward you with 3x points per dollar spent on flights, prepaid hotels, and prepaid flight and hotel packages booked through AmEx Travel or AmexTravel.com. But, there’s a caveat: the 25% rebate when using points to pay for travel is no more, and for most, the increase in points may not fully offset this loss.

    Moreover, booking through AmEx Travel can sometimes be pricier than booking directly with airlines or hotels, and while AmEx itself generally has a reputation for excellent customer service, the travel agency is run by a third party, with a reputation for being difficult to work with in the event of changes or IRROPS. Additionally, by booking a hotel through AmEx Travel, you forfeit any accrued points and elite nights with the hotel chain, and won’t receive any elite benefits during your stay.

    New Statement Credits Offset Fee Increase

    One notable improvement is the introduction of statement credits for Amex Business Gold cardholders. Here’s what you can look forward to:

    • Up to $20 per month ($240 annually): Eligible purchases at FedEx (shipping only), Grubhub (delivery only), and office supply stores. It’s a shame to see GrubHub restricted to delivery only; I mostly burn my credits with delivery services by opting for pickup.
    • Up to $12.95 per month ($155 annually): A monthly Walmart+ membership; it’s worth noting that purchasing an annual membership costs only $98, so if you plan to prepay the entire year anyway, you may value this differently. You must opt to pay monthly to receive this credit.

    Maximizing these statement credits can effectively offset the card’s entire annual fee (or nearly offset it, depending on if you value Walmart+ at $155 or $98). The FedEx credit is a particularly interesting addition, especially as the card removes bonus points on shipping purchases.

    Cellphone Insurance

    Another perk is the addition of cellphone protection. This feature reimburses you for repair or replacement costs for a stolen or damaged cellphone, with coverage of up to $800 per claim (up to two claims per year, with a $50 deductible per claim). While it may not save you a fortune, it offers peace of mind and could eliminate the need for other cellphone insurance plans. Keep in mind many phone providers now only give autopay discounts to those using a debit card or bank account; this can often be thwarted by setting up automatic payments on a debit card, and manually pushing through a credit card payment before your due date each month.

    Rose Gold Now Available

    For those who appreciate aesthetics, the rose gold option, already available on the personal Gold card, is now extended to the Amex Business Gold. I’ve never seen the appeal in this option on the personal Gold card and think the classic design looks great, but I guess choices are always better than no choices?

    Welcome Offer Still Lukewarm

    Despite all these updates, there’s no change to the welcome offer. New cardmembers will continue to earn 70,000 Membership Rewards points after spending $10,000 in the first three months of card membership. While this is a fairly lukewarm offer, if your Membership Rewards balance is running low, and you can manage the hefty spend, this offer may be worth looking into.

    Bottom Line

    The refreshed Business Gold Card comes with a new set of bonus categories, statement credits, and cell phone protection. However, the $375 annual fee is beginning to encroach into a more premium class of card (Venture X, anyone?), and I personally would have a tough time dropping that much on a card that didn’t even feature Priority Pass. How much value you obtain depends on your own spending patterns, and genuine business owners may get a lot of value out of this card. But I’ll personally pass on this card, at least until a better welcome bonus is released.

  • From Black Card to Blacklist: Florida Centurion Holder Sued by AmEx for Nearly $1 Million

    From Black Card to Blacklist: Florida Centurion Holder Sued by AmEx for Nearly $1 Million

    In the world of credit card mishaps, today’s story comes straight out of the Florida Man playbook. Dr. Ronald Glatzer, a Boca Raton ophthalmologist, finds himself in hot water as American Express takes him to court, alleging he owes a jaw-dropping $936,000 on his Centurion Card. Yes, you read that right – that’s almost a million bucks. While Glatzer has been recognized as one of the “Best Doctors in America,” it would seem his skills as a doctor don’t translate to money management.

    Now, we’re not here to revel in anyone’s financial woes, but this one is worth a raised eyebrow or two. Let’s dive into the details of this case and explore the lessons we can all learn from Dr. Glatzer’s unfortunate situation.

    The Eye-Popping Debt

    According to a complaint uncovered by BocaNewsNow.com, Dr. Glatzer has accumulated a staggering debt of $934,455.92 with American Express. While it’s unclear when the good doctor last made a substantial payment, it’s worth noting that a mere 45 cents were credited to his account in August of 2023. Not exactly a dent in that hefty balance.

    American Express, understandably, is not taking this lightly. They’ve slapped Dr. Glatzer with a “breach of contract” lawsuit, aiming to recoup their nearly one million dollars. The minimum payment due as of September 23, 2023, was practically the entire outstanding balance at $934,455.92, with the total balance reaching $936,247.66.

    Facing the Music

    In legal terms, Glatzer’s situation doesn’t look too promising. The complaint clearly states that he defaulted on the account’s terms and conditions, prompting American Express to accelerate the full balance. Ouch.

    Now, when someone finds themselves in such dire straits with the credit card issuer, they often end up on a not-so-coveted list: AmEx’s blacklist. Not much is publicly known about this list, but word on the street is that it can take anywhere from 10 to 30 years to get off it after repaying a delinquent debt. Some have suggested that becoming an authorized user might expedite the process—emphasis on “might.”

    Then, there’s the “super blacklist,” reserved for individuals who are almost certainly on the outs with AmEx due to severe issues or massive unpaid debts. It’s safe to assume given the extreme amount at hand here, Dr. Glatzer might be rubbing shoulders with this exclusive group.

    Lessons Learned

    Now, before we all shake our heads at the misfortune of Dr. Glatzer, it’s worth remembering a few golden rules of the credit card game. First and foremost, interest charges can quickly outweigh any value earned through points and miles. So, if you can’t commit to paying off your cards on time and in full every month, it might be wiser to consider cards with lower APRs rather than those tantalizing rewards cards.

    This tale from Boca Raton serves as a stark reminder that financial missteps can happen to anyone, even wealthy professionals like Dr. Glatzer. It’s essential to manage your credit responsibly and avoid burning bridges with valuable credit card issuers. After all, American Express is among the most prized in the game, particularly for those who cherish their points and miles. Being on the AmEx blacklist (and the ensuing hit to one’s credit score) would be a huge hit to many of us.

    In the end, while this is a rather extreme example, let Dr. Glatzer’s story be a cautionary tale for us all to use our credit cards responsibly. Keep your financial house in order, or you might just find yourself in the spotlight as the next “Florida Man” of credit card debacles.

  • AmEx Quietly Adds New Restrictions on Delta Cards

    AmEx Quietly Adds New Restrictions on Delta Cards

    AmEx has altered the deal – pray they do not alter it any further.

    American Express and Delta Airlines have long enjoyed a close partnership, offering a range of co-branded credit cards that have been popular among travelers seeking to maximize their SkyMiles and benefits. However, recent developments in the world of Delta and American Express credit cards have left many loyal SkyMiles members scratching their heads and, frankly, feeling a bit alienated.

    For years, American Express had a policy in place that allowed customers to enjoy a credit card welcome offer “once in a lifetime.” In practice, this typically translated to a wait period of 5 to 7 years before you could snag another tempting welcome offer. But there was a clever workaround for those savvy enough to exploit it – the various flavors of American Express Delta business and consumer cards were considered different products, enabling cardholders to potentially sextuple-dip into the world of Delta welcome offers.

    However, as the saying goes, all good things must come to an end, and it appears that the party may be over for the welcome offer aficionados. Danny the Deal Guru recently noticed the emergence of some intriguing “family language” on Delta consumer cards, similar to the language recently implemented on the AmEx Platinum family. This language, while not consistent across all Delta consumer cards, seems to put restrictions on obtaining a welcome offer if you’ve had other cards within the same family. Notably, Delta Business cards remain unaffected by these changes (for now).

    So, what’s the scoop on these new rules? Well, it seems the Gold Delta card is currently off-limits if you’ve had any of the three top cards in the Delta consumer card family in the past. However, there’s a glimmer of hope for those eyeing the Delta Platinum card – you might still be eligible for its welcome offer even if you’ve previously held the Gold card (though not the Reserve). And as for the Delta Reserve card, it appears to be business as usual, with no new restrictions in sight. Also notably, the Delta Blue card seems to go without mention, so that signup bonus may still be up for grabs. Some examples of the new language:

    You may not be eligible to receive a welcome offer if you have or have had this Card, the Delta SkyMiles® Platinum American Express Card, the Delta SkyMiles® Reserve American Express Card or previous versions of these Cards.

    Delta Gold Card

    You may not be eligible to receive a welcome offer if you have or have had this Card, the Delta SkyMiles® Reserve American Express Card or previous versions of these Cards. 

    Delta Platinum Card

    You may not be eligible to receive a welcome offer if you have or have had this Card or previous versions of this Card. 

    Delta Reserve Card

    Now, it’s worth noting that the variations in language between the Delta Platinum and Gold cards appear deliberate and targeted, rather than the result of a gradual rollout of a uniform family rule. Delta and Amex seem intent on allowing cardholders to ascend to more premium and expensive offerings, but they’re tightening the screws if you’re thinking of heading in the opposite direction. In other words, if you were planning to score welcome offers on all three cards by applying for the Gold, Platinum, and Reserve sequentially, you’re in luck. However, if you had your sights set on circling back to one of the other cards after having the Reserve or the Platinum, you might find yourself out of luck. This enhanced language has been aptly termed “waterfall language,” as signup bonus ineligibility “waterfalls” down from higher tier cards.

    As with many developments in the credit card rewards landscape, these rules are subject to change. It wasn’t long ago that Amex added more restrictive language to its various Platinum cards, so it’s entirely possible that we’ll see further tweaks down the road.

    In the ever-evolving world of credit card rewards, it’s crucial for travelers and points enthusiasts to stay vigilant and adapt to the changing landscape. With Delta’s recent moves to overhaul its SkyMiles loyalty program and tighten access to its SkyClubs, it’s clear that change is in the air. And if you’re not yet affected by these new rules, it may be worth grabbing the welcome bonuses for these cards before AmEx tightens the rules even further.

  • Unlocking Elevated Travel: Exploring the 100K Bonus Miles Offer of the Revamped Citi AAdvantage Executive Card

    Unlocking Elevated Travel: Exploring the 100K Bonus Miles Offer of the Revamped Citi AAdvantage Executive Card

    The revamped Citi® / AAdvantage® Executive World Elite Mastercard® has certainly caused a stir in the miles and points community, and for good reason. While it’s true that the card’s annual fee has undergone an eyebrow-raising hike from $450 to $595, and some new fees for authorized users have crept in, let’s not jump ship just yet. This card has pulled out some tricks from its sleeve that could make it a compelling choice for frequent travelers, even despite the initial sticker shock.

    But first things first, let’s talk about the star of the show – the 100,000 AAdvantage bonus miles on the table for those who manage to meet the minimum spending requirements. If that doesn’t immediately grab your attention, well, it should. This is a “best ever” bonus for this card, and given Citi’s 48-month rule on grabbing signup bonuses, the time to pull the trigger is now.

    Of course, the welcome bonus isn’t the only selling point here. If you’ve ever found yourself yearning for the tranquility and convenience of an Admirals Club membership, this card is waving that perk right in front of you. And while the increase in the annual fee might make you blink twice, consider this: the fee actually comes in cheaper than a standalone Admirals Club membership. Even in spite of recent fee hikes, this is still a great deal for regular AA fliers.

    But wait, there’s more. If you don’t yet have AAdvantage status, this card carries a bevy of status-like benefits, and the ability to defeat some aspects of basic economy. How about a complimentary first checked bag for you and up to eight companions on the same reservation when you’re jetting off on domestic American Airlines flights? Plus, with priority check-in, security, and early boarding on the menu for American Airlines flights, you’ll be breezing through the airport like a seasoned traveler, leaving those long lines and hassles behind. If you’re working towards AAdvantage elite status, this is great way to gain early access to some of those perks & make your journey to status more comfortable.

    Oh, and let’s not forget those bonus Loyalty Points – a potential 20,000 of them a year, not tied to your spending. Rack up 50,000 Loyalty Points with AAdvantage and you’ll be showered with an extra 10,000 bonus Loyalty Points. And if you’re aiming even higher, hitting the 90,000 Loyalty Points mark will add yet another 10,000 bonus Loyalty Points to your stash. While not game changing by any means, it’s a nice little boost on your journey to the next tier of AAdvantage status.

    But it doesn’t stop there. The card is essentially throwing you an assortment of credits worth up to $360 annually. Whether you’re planning to hit the road with Avis or Budget, craving some Grubhub delights, or catching a Lyft, these credits have got your back. And if you’re a fan of smooth airport experiences, the Global Entry or TSA PreCheck credit of up to $100 every four years is a nice perk.

    New travel protections are woven into the card’s fabric too, covering everything from trip cancellations to rental car mishaps. This is one of the most interesting changes on the newly-revamped card; many of you will remember that Citi dropped most travel protections across their lineup of cards back in 2019. And for those looking to elevate their hotel and car bookings, earning 10x AAdvantage miles on eligible bookings through the card’s portals could very well be the icing on the travel cake – though even in light of this benefit, we still generally advise booking direct with hotels to receive elite benefits and avoid any mishaps with a third-party booking.

    So yes, the Citi AAdvantage Executive Card has morphed into something quite intriguing. While the $595 annual fee might make you raise an eyebrow, the multitude of benefits can easily turn that skepticism into intrigue. And if you’ve been eyeing this card from a distance, there’s no denying that this could very well be your moment to seize that 100,000 AAdvantage bonus miles offer and set off on a journey of extraordinary perks and possibilities.