Recently, a Reddit user took to Twitter to have a discussion about his credit card. He has an Amex Gold Card, which he says he is “really liking so far.” He’s had the card for two months already and feels pretty comfortable with it. However he’s also noticed that many other people online hate the card, and he’s not sure why so many people feel that way when his experience has been good.
Understanding both the original poster’s opinion about his card, as well as the reasons why so many complain, can be helpful for anyone who is considering which credit card is best for their own situation. Here’s why the details about this controversial card are important.
Why the Redditor likes his gold card — and why so many others don’t
The original poster was very clear that he liked his card for two big reasons.
- First, it provides a very generous four times the standard points at restaurants and on groceries. The Reddit poster said getting such a large amount of bonus points on these two categories of spending is “unheard of.”
- Second, it comes with a number of statement credits that offset the card’s hefty annual fee. The poster explained that he feels he can use all of the credits that the card provides “organically, without manufacturing spending.” The only exception is the hotel credit, but all of the other credits, which he can use easily, more than offset the annual fee he’s being charged.
All of this makes good sense. It is true that the card does have a hefty annual fee, but it also offers statement credits for things that many people, including the original poster, would be buying anyway. Since the OP is getting money back for everyday spending, the card effectively ends up costing him nothing.
However, other posters who dislike the card also had some valid opinions. Many pointed out that they simply do not like the model where they pay a high up-front fee and then get random statement credits back, as this just gives them too many things to keep track of. One poster even commented, “I don’t understand why people think they’re getting a benefit by prepaying and then receiving a product/service later,” which is a valid point.
Is getting a card with a big annual fee and many statement credits a good choice for you?
In this particular dispute, there is not really one single right answer. Both the Reddit poster who loves the card and those in the replies who dislike it have very valid reasoning.
For some people, the statement credits, extra rewards, and added perks more than make up for paying for a card. In fact, there are cards with even more expensive fees than this one that can still be justified by the fact that the benefits add up to more than the fee. These types of cards tend to make the most sense for people who travel often, who are bigger spenders, and who would be buying the items that offer them the credits anyway.
On the other hand, people who aren’t going to be charging a lot of stuff each month may not get the value from these cards. And others who want the minimum of hassle in their financial life may also not want a card like this one, even if they would end up breaking even, because it’s just not worth their time to try to track spending and make sure they are using the right card on the right purchases to take full advantage of the benefits.
If you are in the former camp, then you can and should look around for a card that’s going to give you enough perks to justify its value, and if you are in the latter, then rather than getting an expensive card with a lot of management required, you should look for a simple cash back card with no annual fee and that provides a reasonable amount of cash back on every purchase rather than forcing you to keep track of a bunch of bonus categories.
It’s true that the people who spend time managing their cards are going to end up with better rewards, but those who don’t want to do that can still get pretty generous rewards anyway with the right simple cash back card — and they can avoid a whole lot of hassle.
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