Canadians love their rewards, and the American Express Cobalt® Credit Card has been making waves in the market with its generous point-earning structure and travel-centric perks. But is this premium card the right fit for your wallet? As a financial advisor with a passion for smart spending, let’s explore the ins and outs of the Cobalt Card and see how it stacks up against your needs.
The Allure of 5X Points
The Cobalt Card shines brightest in its ability to multiply your points on everyday expenses:
- Groceries & Dining: A whopping 5 points per dollar spent on groceries and dining out, including restaurants, cafes, bars, and food delivery services. This is where the Cobalt Card truly outperforms many competitors, making it a favourite for foodies and home chefs alike.
- Travel & Transit: Earn a solid 2 points per dollar on travel purchases (flights, hotels, etc.) and transit (public transportation, taxis, rideshare).
- Everything Else: Even your “regular” spending earns 1 point per dollar, ensuring every purchase contributes to your reward potential.
The Value of Membership Rewards® Points
But what do these points get you? American Express Membership Rewards® points are incredibly flexible, offering several redemption options:
- Travel: This is where your points pack the most punch. Book flights, hotels, car rentals, and even cruises directly through American Express Travel and offset the cost with points.
- Statement Credits: Redeem points to cover previous purchases on your statement. This is a straightforward way to get cash-like value from your rewards.
- Transfer Partners: Transfer points to frequent flyer and hotel loyalty programs like Aeroplan, British Airways Avios, and Marriott Bonvoy. This can unlock even greater value for your points, especially when used for premium travel redemptions.
- Merchandise & Gift Cards: While not the most lucrative option, you can also redeem points for merchandise or gift cards from a variety of retailers.
Perks Beyond Points
The Cobalt Card doesn’t stop at rewards points. Cardmembers also enjoy:
- $50 Annual Travel Credit: Offset the cost of eligible travel purchases like baggage fees or seat upgrades.
- No Foreign Transaction Fees: Ideal for frequent travellers, as you won’t be hit with extra charges when using your card abroad.
- Mobile Device Insurance: Get coverage for your phone against theft, damage, or loss.
- Purchase Protection: Enjoy extended warranty and purchase protection for eligible items purchased with your card.
Costs & Considerations
The Cobalt Card’s benefits come at a price: a $12.99 monthly fee (equivalent to $155.88 annually). This makes it crucial to assess if your spending habits and reward redemption goals will outweigh the fee.
Additionally, American Express isn’t as widely accepted as Visa or Mastercard, so it’s wise to carry a backup card for those situations.
Who Should Consider the Cobalt Card?
The Cobalt Card is an excellent choice for those who:
- Spend heavily on dining and groceries: The 5x points on these categories are a significant advantage.
- Travel frequently: The travel credit, no foreign transaction fees, and travel insurance coverage make this a travel-friendly card.
- Value flexible rewards: The diverse redemption options cater to various interests and travel styles.
How to Apply for American Express Cobalt®
Applying is simple. You can start the process directly on the American Express website or through Komnect.com’s user-friendly interface. You’ll need basic personal and financial information, and American Express will review your application based on their criteria.
Conclusion
The American Express Cobalt® Credit Card is a great option for Canadians who are looking for a premium rewards card with no foreign transaction fees. The card offers a variety of benefits, including 5x points on groceries, gas, and dining, 2x points on all other purchases, a $50 annual travel credit, and complimentary airport lounge access. The annual fee is $100, but it is waived for the first year.
If you are looking for a new credit card, I highly recommend the American Express Cobalt® Credit Card.
