Does it make sense to hold an Amex Platinum and Amex Gold card?

1 month ago 16

I know what you're thinking: It doesn't make much sense to hold two cards that earn the same type of points while paying hefty annual fees to keep them both in your wallet.

For me (and many others), however, it's entirely worthwhile.

It's true that the price tags on The Platinum Card® from American Express and American Express® Gold Card can look hefty — especially combined — and that they earn the same type of points. However, these cards' earning rates and perks couldn't be more different.

If you want to accelerate your earnings, maximize the benefits available each year and ensure that you're protecting as many of your expenses as possible, it makes sense to hold both the Platinum and Gold cards. Here's why.

Two cards, two bonuses

During the first year that you have a credit card, the welcome bonus is one of (if not) the most valuable benefits. Plus, it's possible to earn welcome bonuses on most American Express cards. However, it's important to read the restrictions carefully, since Amex has started implementing rules for cards in the same family that could restrict your eligibility for these offers.

For example, last fall, Amex added verbiage to the offer terms on the Amex Gold, indicating that you may not be eligible for the welcome bonus if you currently have (or have had) the Amex Platinum. However, the reverse doesn't hold; as of now, you can still earn a Platinum welcome bonus as a current (or past) Gold card member.

As a result, you'd want to start with the Amex Gold and then look to add the Amex Platinum at a later date — so long as you meet the issuer's other application rules, of course.

Right now, new applicants for the Amex Platinum card can earn 80,000 bonus points after spending $8,000 on purchases in the first six months of card membership. Meanwhile, applicants for the Amex Gold card can earn 60,000 bonus points after spending $6,000 on purchases in the first six months of card membership. Plus, receive 20% back in statement credits on eligible restaurant purchases (up to $100) within the first six months of card membership.

TPG August 2024 valuations peg American Express Membership Rewards points at 2 cents apiece. Thus, 140,000 points are worth $2,800.

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How should you use those points? Here's a look at maximizing your Amex Membership Rewards points.

Accelerate your earnings

Beyond the welcome bonus, you'll earn points on purchases made with your card. However, the number of points you earn with the Platinum and Gold cards varies greatly. Compare the following:

Earning ratesAmex Platinum cardAmex Gold card

Flights	5 points per dollar on flights booked directly with airlines or with Amex Travel (up to $500,000 of these purchases annually, then 1 point per dollar)	3 points per dollar on flights booked directly with airlines or amextravel.com
Hotels	5 points per dollar if booked and prepaid with Amex Travel; 1 point per dollar otherwise	2 points per dollar if booked and prepaid with amextravel.com; 1 point per dollar
Restaurants	1 point per dollar	4 points per dollar (on up to $50,000 in purchases per calendar year, the 1 point per dollar)
Supermarkets	1 point per dollar	4 points per dollar at U.S. supermarkets (on up to $25,000 on purchases per calendar year, the 1 point per dollar)
Other purchases	1 point per dollar	1 point per dollar

You could earn thousands of extra points each year by using the right card for each purchase. A general guide is to use the Platinum and Gold cards as follows:

Platinum card: For flights booked directly with airlines, plus flights and hotels booked with Amex Travel.

TPG's managing editor for credit cards, Matt Moffitt, says, "Whilst this card has a high annual fee, it more than justifies itself for frequent travelers like me. The lounge access options that come with the Platinum are unrivaled by competitors. I put all of my flights — whether bought with cash or points — on this card to earn 5 points per dollar spent and trip protection insurance. I make sure to take full advantage of the Uber, Saks Fifth Avenue, Hulu/Disney+ and Clear credits (enrollment required for select benefits). And, honestly, pulling a Platinum card out of your wallet to pay for something does feel pretty fancy."

Gold card: At restaurants and U.S. supermarkets.

TPG associate credit cards writer Chris Nelson is a foodie and loves the Gold card because of 4 points per dollar earning rates at restaurants (on the first $50,000 in purchases per calendar year; then 1 point per dollar) and the ability to transfer Membership Rewards points to a variety of transfer partners.

Annual credits galore

In addition to earning points, both cards provide annual credits that can put hundreds or thousands of dollars back in your pocket. Note that you need to enroll in advance for most of these benefits.

The Amex Gold card provides the following annual credits as part of its $325 annual fee (see rates and fees):

Up to $120 in annual dining credits, given as up to $10 per month with select merchants
Up to $120 in Uber Cash per year, given as $10 per month for rides or Uber Eats orders in the U.S. You must have downloaded the latest version of the Uber App and your eligible American Express Gold Card must be a method of payment in your Uber account.
Up to $100 Resy Credit, given as up to $50 in statement credits semi-annually
Up to $84 Dunkin' Credit, given as up to $7 per month in statement credits

If you use these $424 in credits, that more than covers the card's annual fee. Enrollment is required for select benefits.

Meanwhile, the Amex Platinum card provides the following annual credits as part of its $695 annual fee (see rates and fees):

Up to $200 in airline fee credits with your preferred airline
Up to $200 in annual hotel credits for prepaid bookings with Amex Fine Hotels + Resorts or The Hotel Collection (minimum two-night stay)
Uber VIP status and up to $200 in Uber Cash annually, valid on rides and Uber Eats orders in the U.S. You must have downloaded the latest version of the Uber App and your eligible American Express Platinum Card must be a method of payment in your Uber account.
Up to $189 in annual Clear Plus credit to cover your annual membership
Up to $240 in annual digital entertainment credits, given as up to $20 per month for purchases with eligible streaming partners
Up to $300 in annual Equinox credits on select Equinox gym or Equinox+ app memberships
Up to $155 in annual credits, given as up to $12.95 plus taxes monthly to cover the cost of a monthly Walmart+ membership (subject to auto-renewal); Plus Up benefits not eligible
$100 statement credit for Global Entry every four years or an up to $85 fee credit for TSA PreCheck every 4 1/2 years (depending on which application fee is charged to your card first)
Up to a $100 Saks Fifth Avenue credit, given as up to $50 biannually

Using these perks provides more than $1,500 in annual value — well above the $695 annual fee. If you can use 50% of the credits, that's still worth more than the annual fee. Enrollment is required for select benefits.

Gain additional shopping and purchase protections

Both cards offer coverage in shopping and travel protections. However, the amount of coverage varies.

Both cards have these built-in perks:

Extended warranty protection: Adds an extra year to a manufacturer's warranty of five years or less. Maximum coverage is the amount charged to your card, up to $10,000 per incident and up to $50,000 per cardmember account in a calendar year.*
Purchase protection: Covers items against damage, theft or loss within 90 days of purchase. There is a limit of $10,000 per occurrence and $50,000 per cardmember annually.*

*Eligibility and benefit levels vary by card. Terms, conditions and limitations apply. Visit americanexpress.com/benefitsguide for details. Policies are underwritten by AMEX Assurance Company.

However, other protection levels are quite different. Here's how coverage levels vary between the Amex Platinum and Gold cards:

Amex Platinum cardAmex Gold card

Cellphone protection	Covered against loss or damage, up to $800 per claim and up to two claims in a 12-month period. There is a $50 deductible per claim. Coverage applies to phones on a cellphone plan paid for with your card in the previous billing period**	None
Return protection	Covers purchases made in the last 90 days, up to the full purchase price or $300 maximum (minus shipping and handling costs). Coverage is limited to the U.S. and its territories***	None
Trip cancellation and interruption insurance	Provides up to $10,000 per trip (with a maximum of $20,000 in a 12-month period) for a trip canceled or interrupted for a covered reason**	None
Trip delay insurance	Up to $500 per covered trip after a delay of six hours or more; maximum of two claims in a 12-month period**	Up to $300 per covered trip after a delay of 12 hours or more; maximum of two claims in a 12-month period**
Travel emergency services	24/7 access to the Premium Global Assist Hotline to coordinate and assist with legal, medical, financial or other emergency services when traveling more than 100 miles from home. You must pay for any third-party services coordinated on your behalf. Emergency medical transportation may be provided at no cost if coordinated by the benefit administrator^	24/7 access to the Global Assist Hotline to coordinate and assist with legal, medical, financial or other emergency services when traveling more than 100 miles from home. You must pay for any third-party services coordinated on your behalf^
Baggage insurance plan	Covers up to $2,000 for checked bags and up to $3,000 total between checked and carry-on luggage. This is in excess of coverage provided by your carrier. (NY residents: $2,000 per bag limit with an aggregate limit of $10,000 across all persons on a covered trip)*	Covers up to $500 for checked bags and up to $1,250 for carry-on luggage. This is in excess of coverage provided by your carrier. (NY residents: There is an aggregate limit of $10,000 across all persons on a covered trip)*
Car rental loss and damage insurance	Up to $75,000 of coverage for theft or damage to eligible rentals†	Up to $50,000 of coverage for theft or damage to eligible rentals†

*Eligibility and benefit level varies by card. Terms, conditions and limitations apply. Visit americanexpress.com/benefitsguide for details. Policies are underwritten by AMEX Assurance Company.
**Eligibility and benefit levels vary by card. Terms, conditions and limitations apply. Visit americanexpress.com/benefitsguide for details. Policies are underwritten by New Hampshire Insurance Company, an AIG Company.
***Eligibility and benefit levels vary by card. Terms, conditions and limitations apply. Visit americanexpress.com/benefitsguide for details.
^Eligibility and benefit level varies by card. Terms, conditions and limitations apply. Visit americanexpress.com/benefitsguide for details. Cardmembers are responsible for the costs charged by third-party service providers.
†Eligibility and benefit level varies by card. Not all vehicle types or rentals are covered, and geographic restrictions apply. Terms, conditions and limitations apply. Visit americanexpress.com/benefitsguide for details. Policies are underwritten by AMEX Assurance Company. Coverage is offered through American Express Travel Related Services Company, Inc.

By carrying both cards, you can enjoy additional protections while maximizing the points you earn on each purchase.

It doesn't make sense for everyone

Not everyone will gain enough value to justify holding the Platinum and Gold cards simultaneously. Consider the following to decide whether it makes sense for you:

If you rarely use lounges (or don't qualify for sufficient guest privileges to bring your family into the lounge with you), the Platinum card will lose value. Are you using enough other perks to overcome the $695 annual fee?
If you shop at Walmart or Target or use grocery delivery services that don't code as "supermarket" on your purchases, you won't earn bonus points with the Gold card. Are you getting enough benefits otherwise?
Are you using the Platinum card's benefits "just because they're available," or are you getting real value by saving money on purchases you would make anyway? If you weren't using streaming services, Walmart+ or Uber already, consider the true value these provide for you.

Bottom line

For some, the Amex Gold's lower annual fee, dining credit, monthly Uber Cash and great bonus categories may make more sense than carrying the Platinum card. The Platinum card will make sense for those who can take advantage of the card's perks and credits — and buy a lot of flights to maximize the earning categories.

However, those looking to maximize the benefits and perks they enjoy and accelerate the points they earn should consider putting both cards in their wallet. If you use them, these benefits will outweigh the cards' annual fees long after you've used the points from the welcome bonuses.

For more information, read our full reviews of the Amex Gold and Platinum cards.

Apply Here: Amex Gold card
Apply Here: Amex Platinum card

For rates and fees of the Amex Platinum Card, please click here.
For rates and fees of the Amex Gold Card, please click here.

Editorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

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