This post is written by Jordan Bishop, perpetual traveler and founder of Yore Oyster. The principles applied are universal, though the recommended tools are available only to Canadians.
|The American Express Cobalt Card has one of the lowest fees you'll find out there. Combined with the 10,000 point welcome offer and a bonus of 2,500 points for every month that you spend $500 or more, racking up the points with this card is easy. This card is a no-brainer for foodies and travelers alike.|
"30,000 bonus points for just $10/month? I'm in!"
The American Express Cobalt card has been receiving a lot of attention since its fall 2017 launch, and with good reason: it’s an extremely compelling offer. $10/month for a card that gets you 5x the points on food and drink purchases in Canada and 2x the points on travel purchases anywhere in the world is an absolute steal.
But of course, as we’ve come to expect from American Express through their other offers—like the
If you don’t want to read this entire post, here’s the gist:
We recommend applying for both the Cobalt Card and the Platinum Card to maximize both your travel options and your statement savings.
The question is…why?
The American Express Cobalt card is the first and only American Express card to offer a monthly fee in lieu of an annual fee. It’s marketed at millennials and near-millennials, so if you fit either of these, you’ll definitely want to give the Cobalt card a closer look.
Normally, I recommend using your American Express points on flights, since you can get exceptional deals like these that we mention in our post on the
|Roundtrip Toronto to Hong Kong
$100 total taxes/fees
|Roundtrip Vancouver to Hong Kong
$90 total taxes/fees
|Round-the-world Toronto to Hong Kong to Dubai to London to Toronto
$761 total taxes/fees
|Round-the-world Vancouver to Hong Kong to Dubai to London to Vancouver|
$742 total taxes/fees
But the major drawback of the Cobalt card is that you can’t spend the points you earn with it on flights. Instead, American Express has introduced a new tier of points called Membership Rewards (MR) Select, which are usable for just about everything that the other MR points (which you receive with the
So the American Express Cobalt comes with both good and bad. The bad is the change I just described: you can’t redeem the MR Select points for flights, so many of our strategies for
But the good is really, really good: once you know how, you can easily save 10% on your monthly spending using the Cobalt card.
Save 10% on your spending with the American Express Cobalt
On top of that, you also earn 5x points for every dollar you spend on food and drinks, and American Express is generous with their definition of food and drinks:
Restaurant, quick service restaurant, coffee shop and drinking establishments in Canada, stand-alone grocery stores in Canada, delivery of food and groceries in Canada...
In other words: you earn 5x the points at all restaurants, bars, cafés, grocery stores, and food delivery services (UberEATS etc.), making the magic $500 monthly threshold fairly easy to hit for most of us (about $120/week in food). And when you do…
You’ll save 10% on that month’s spending.
Here’s the math to show what I mean:
2,500 bonus points for spending $500/month
+ 2,500 points (5x points on $500 spent on food/drinks)
= 5,000 points earned per month
When you apply those points at the one cent per point valuation I mentioned above (which is as simple as applying them against your American Express statement, nothing more), you get $50 back on your $500 of spending. That's a savings of 10%!
Here’s how it looked when I applied some of my MR Select points against two flights I’d recently redeemed my regular MR points for on Aeroplan:
Of course, it’s not a problem if you don’t spend $500 per month on food and drinks. Let’s imagine that one month you only spend $300 on food and drinks and the other $200 on something else:
2,500 bonus points for spending $500/month
+ 1,500 points (5x points on $300 spent on food/drinks)
+ 200 points (1x points on $200 spent on other items)
= 4,200 points earned per month
In this case, you end up with 4,200 points, worth $42, for a savings of 8.4%. This trend continues: the more you spend on food and drinks, the higher your monthly savings will be.
While we're at it, let's look at some of the other benefits of the Cobalt card:
|Emergency travel medical insurance||Extended purchase insurance||Flight delay insurance|
|Hotel burglary insurance||Lost/stolen baggage insurance||Car rental damage/theft insurance|
|Plus much more...|
What About Foreign Currency Exchange?
While you earn 2x the points on travel purchases like flights and hotels, you still pay a currency exchange fee with the Cobalt card, which normally adds about 2% to the purchase price. 2% isn’t huge, but if you spend $5,000 over the course of a month-long Europe trip, that’s an extra $100 you’ve thrown away in currency exchange fees. Instead, I recommend picking up the
The Bottom Line
If you spend either $500 per month OR $200 per month on food and drinks, you'll make money with the Cobalt card. This is before accounting for any of the other benefits that come with the card listed above, like travel insurance and extended warranties on your purchases.
So of course, once you add in all of the other benefits, this card is a true no-brainer. Add it to your arsenal of the
So...will you take advantage of the Cobalt card or let it pass you by?
If you have questions, feel free to
We actually recommend both of them! There are exceptional offers for both cards right now, and the differences are quite slight: the fee on the personal Platinum card is $200 higher than the Business Platinum card, though with it you can actually get $400 of travel credit ($200 in 2018 plus $200 more in 2019) within your first 12 months of having the card. For a full breakdown of the cards we recommend, take a look at the
There are two facts about the Platinum card that every cardholder needs to be aware of:
Your annual fee is always applied 12 months from when you apply for your card.
Your $200 annual travel credit always resets on January 1.
Let’s look at how this affects you.
If you were to apply today, you'd be able to use $200 of travel credit between now and December 31, 2018, and then $200 more between January 1, 2019 and today’s date in 2019.
This means that from a literal perspective, the best date to apply for the card is probably July 1, since that means you have a full 6 months in 2018 to use your first $200 plus a full 6 months in 2019 to use your second $200.
However, I don't recommend waiting until July 1 for one simple reason: this offer on the Platinum card is likely to be gone by then. The 60,000 points bonus you get with the card right now is truly a steal, so I'd be surprised if the offer is still around then.
Not at all. Just enter your first and last name on both the lines reading Legal Business Name (as registered) and the Business Name to Appear on Card on the card application. Anyone can own a sole proprietorship in their own name (and it doesn't need to be registered with any government agency), so it's totally fine to have your first and last name as your business name. American Express will never ask you to prove your business activities, such as revenues, taxes paid, etc.
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