Amex Gold Card vs Chase Sapphire Preferred: Which rewards card is right for you?

Business Insider Traveling 2 months ago

If you're looking for a rewards credit card, two top options you'll come across are the Amex Gold Card and the Chase Sapphire Preferred

American Express rebranded its longstanding Premier Rewards Gold Card as the Amex Gold Card about a year ago. Along with a snazzy new metallic design, the card now offers higher earning rates on groceries at US supermarkets and dining, as well as bonuses on airfare purchases. At the same time, Amex upped its annual fee to $250. 

For its part, the Chase Sapphire Preferred has remained one of the most popular travel rewards credit cards on the market since launching a decade ago. Its annual fee has remained steady at $95 for all that time, which makes it an ideal option for those who are new to travel rewards. The Sapphire Preferred earns a solid 2 points per dollar on all dining and travel purchases, and offers the best travel protections in the industry.

If you're trying to decide which is best for you, there are several factors to consider. Keep reading for the full details.

Keep in mind that we're focusing on the rewards and perks that make these credit cards great options, not things like interest rates and late fees, which can far outweigh the value of any rewards.

Chase Sapphire Preferred vs. Amex Gold: the biggest differences




Which of these two rewards credit cards is right for you will depend on your spending habits, each program's unique transfer partners, and which benefits you can maximize. Here are the questions to ask yourself as you try to decide.

Is it worth paying a higher annual fee for more statement credits?

On the surface, this might seem like a no-brainer. The Chase Sapphire Preferred charges an annual fee of $95 while the Amex Gold Card's is over two times higher, at $250 per year. Neither is waived the first year. So why not go with the less expensive card?

Chase Sapphire Preferred cardholders do not receive any sort of statement credits in exchange for paying their annual fee. However, Amex Gold Card members receive annual statement credits worth up to $220, wiping out much of the cost of its annual fee.

How much is the welcome bonus worth to you?

This might seem like another easy decision given the significant difference between the welcome bonuses being offered by each card, but your reasoning might be a little more nuanced.

The Amex Gold Card is currently offering 35,000 points after you spend $2,000 in the first three months. Those points are worth 1 cent apiece, or $500 total, if redeemed directly through Amex Travel for airfare. They are only worth around 0.7 cents apiece when redeemed for other travel such as hotels and cruises or for Amazon purchases, and 0.6 cents apiece for general cash-back statement credits. 

Amex Membership Rewards points transfer to 22 travel partners including Air Canada Aeroplan, ANA Mileage Club, Delta SkyMiles, Hawaiian Airlines HawaiianMiles, and Hilton Honors among others. The flexibility these options provide to travelers is the reason we peg the value of Amex points at around 2 cents apiece.

Chase Ultimate Rewards points earned with the Sapphire Preferred can be redeemed at a rate of 1.25 cents apiece for travel booked through the Ultimate Rewards portal including flights, but also hotels, cruises, vacation packages, and even theme park tickets and other tours and activities. That makes the sign-up bonus worth at least $750.

Upping their value, however, Chase Sapphire Preferred cardholders can also transfer their points to 13 travel partners including Southwest Rapid Rewards, United MileagePlus, IHG Rewards Club, and World of Hyatt among others.

Which card's earning categories will be better for your needs?

Now for another big differentiating factor between the two cards: which one's bonus categories will be easier for you to maximize.

The Amex Gold earns 4 Membership Rewards points per dollar at restaurants worldwide with no spending caps, and at US supermarkets on up $25,000 per calendar year in purchases. It also earns 3 points per dollar on flights booked directly with airlines or on amextravel.com. After that, it's 1 point per dollar on all other purchases.

The Chase Sapphire Preferred has a simpler earning formula: 2 points per dollar on dining and travel worldwide, and 1 point per dollar on everything else. The card's travel category is very broad and includes not only the usual suspects like airline and hotels, but also campgrounds, taxis, rideshare, and even parking lots and toll roads.

Which card will be a better earner for you depends on where most of your spending takes place. If you dine out frequently or spend a lot on groceries at US supermarkets, the Amex Gold Card is clearly the better choice. It also earns more specifically on airfare purchases. However, if the lion's share of your credit card spending is on travel, and non-airline spending specifically, the Chase Sapphire Preferred might be a better choice.

Will you book hotels directly through Amex or Visa?

Both cards participate in hotel networks that bestow benefits and perks on cardholders who book through them. If you reserve a stay at The Hotel Collection with Amex Travel, you're entitled to perks like a $100 hotel credit to be spent on qualifying dining, spa, and resort activities, plus a space-available room upgrade upon arrival. Gold card members also earn 2 points per dollar on prepaid bookings.

Reservations made through Visa Signature Hotels with your Chase Sapphire Preferred card confer perks like space-available room upgrades upon arrival, complimentary in-room Wi-Fi, complimentary breakfast for two, a $25 food or beverage credit, and late checkout upon request. Since a hotel booking counts as a travel purchase, you can count on earning 2 points per dollar, too.

The two programs partner with many of the same luxury hotels around the world, so you will just need to look at whether free Wi-Fi and daily breakfast will be worth more to you than a $100 general credit over the course of your stay.

Which card has better travel and purchase protections?

Before we jump into protections, one other benefit both cards offer that is worth mentioning is that neither levies foreign transaction fees. So you don't have to worry about surcharges showing up on your statement after a trip abroad.

By contrast, the Chase Sapphire Preferred offers one of the best overall suites of travel protections of any credit card out there. Its rental car insurance is primary, and trip cancellation or interruption coverage caps out at $10,000 per trip, $20,00 per occurrence, and $40,000 per 12-month period.

Finally, the Chase Sapphire Preferred offers purchase protection up to 120 days out for a maximum of $500 per claim and up to $50,000 per account.

For purchase protection, the Amex Gold card is a stronger choice, but for travel plans, go with the Chase Sapphire Preferred.

The bottom line


Source link
Read also:
Business Insider › Traveling › 1 month ago
The Chase Sapphire Preferred Card is one of the most recommended rewards credit cards, though so is its more premium sibling, the Chase Sapphire Reserve. While the Sapphire Reserve undoubtedly offers fantastic benefits and outsized value, the Preferred...
Business Insider › Finance › 2 weeks ago
The Chase Sapphire Preferred Card and Chase Sapphire Reserve feature excellent travel rewards with bonus points for restaurant and travel purchases. The Chase Freedom and Chase Freedom Unlimited offer higher rewards on different purchases, and you can...
Business Insider › Traveling › 4 days ago
The Chase Sapphire Preferred Card and the Chase Sapphire Reserve are both fantastic credit cards, with valuable rewards and useful benefits. While the Sapphire Reserve offers additional perks, it has a higher annual fee — $450 — versus the Sapphire...
Business Insider › Finance › 2 months ago
I've been using the Chase Sapphire Preferred Card for more than three years. It's a phenomenal travel rewards credit card and I recommend it to all my friends and family. But after months of contemplation, I decided to upgrade to the Chase Sapphire...
Business Insider › Traveling › 2 months ago
The Chase Sapphire Preferred Card is one of the most popular rewards credit cards available — despite an increasingly competitive credit card rewards space — and it's easy to see why. With a sign-up bonus of 60,000 Chase Ultimate Rewards points...
Business Insider › Finance › 1 week ago
The American Express® Green Card was relaunched this fall, and its new lineup of benefits is so strong that I think it might be even better than the Chase Sapphire Preferred Card. The Amex Green card offers statement credits to offset its annual fee...
Business Insider › Traveling › 2 months ago
When it comes to rewards credit cards, the most valuable options are generally those that earn you bank points, like Amex points with the American Express® Gold Card and Chase points with the Chase Sapphire Preferred Card. However, there are several...
Business Insider › Finance › 2 months ago
I recently upgraded my go-to rewards credit card from the Chase Sapphire Preferred Card to the Chase Sapphire Reserve. I wanted to upgrade to earn even more rewards on dining and travel purchases and utilize two statement credits: an annual one for...
Business Insider › Traveling › 1 month ago
Several Chase credit cards, including the Chase Sapphire Reserve and Chase Sapphire Preferred Card, earn Ultimate Rewards points, which you can transfer to airline and hotel travel partners. While Chase's rewards program is among the most valuable, it...
Business Insider › Finance › 1 day ago
Amex recently unveiled a new credit card option, the American Express® Green Card. This card offers a big welcome bonus, lucrative ongoing rewards, and the opportunity to earn Membership Rewards points. The American Express® Gold Card is also worth...
Sign In

Sign in to follow sources and tags you love, and get personalized stories.

Continue with Google
OR