Introduction to Amex in the UK: Elevating Your Spending
Navigate the landscape of American Express, your passport to premium rewards and unmatched benefits, and discover how every tap can elevate your spending experience.
Introduction
In the intricate web of UK's credit card market, American Express shines as a beacon of premium service, lucrative rewards, and exclusive privileges. Renowned for its customer-centric approach, American Express doesn't just offer a credit card; it offers a lifestyle. In this comprehensive guide, we'll unveil the layers of benefits that come with holding an American Express card and how you can harness these perks to elevate your spending experience.
The range of American Express cards
American Express boasts an impressive array of cards, each tailored to different spending habits and lifestyle preferences. From the avid traveler to the daily spender, there's a card for every need.
If you’re unsure on whether you’d qualify, Amex has a great tool for screening your eligibility without impacting your credit score. Check the tool out here.
Rewards cards
These cards use Amex’s own points system (Membership Reward points) where you can redeem your points across a variety of retailers, cash off your bills, convert them into points for various airline and hotel loyalty schemes and much more. The versatility of the Membership Reward points make Amex one of the best all-rounders for redeeming your points.
Typically, these cards allow you to earn 1 Amex point per £ spent alongside other perks depending on the type of card you choose to go for. 1000 Amex points typically equate to £4.50. However, on occasion Amex have provided promotional offers where the value of their points are increased by 50% so 1000 Amex points would equal £6.25 which is useful if you’re looking to subsidise a large purchase.
There are 3 main cards that Amex offers in this category for personal spending:
The American Express Gold card is a real winner, especially considering its versatility with everyday spending for UK residents, balancing your needs with some travel perks. Having held the Gold card for 4 years myself, I can vouch for the overall points flexibility which allowed me to redeem cash on large purchases, convert points into Avios for booking flights with BA and get free hotel stays with Radisson, Marriott, and more.
However, if you're a serial traveler for work or your personal lifestyle demands it then the American Express Platinum card is a real contender if you find yourself spending significant time in airports and hotels. It also comes with a metal card but with a host of fintechs like Monzo, Revolut, Curve and more offering metal cards, it wouldn’t be a decisive factor considering the hefty £650 annual fee.
Cashback cards
While Amex’s cashback cards are a lot less common and popular they’re perfect for those who prefer straightforward rewards, these cards offer a percentage of cashback on your everyday spending.
There are 2 main cards that Amex offers in this category:
Although far less popular, Amex’s cashback cards offer good value for money considering you’d be earning cashback on all of your everyday purchases. For the Platinum Cashback Credit Card, the annual fee of £25 is something you can earn back if you spend £3,333 in your card membership year. Any spending thereafter is where you make the real gains.
If you’re looking for a way to maximise cashback on your everyday spending then these are great options.
Avios cards
The British Airways American Express cards allow you to accumulate Avios points in return for your everyday spending which you can then use to book flights, packaged holidays, car rentals and more.
If you want to subsidise the cost of travelling and earn companion vouchers to go abroad with a partner or friend then these are a great option.
Below you’ll find a breakdown of the 2 cards that Amex offer which we’ve covered before:
The Avios cards are a great way to supplement your travel experiences by earning points which can be redeemed on flights, earning companion vouchers1 which can be used to halve the cost of the Avios you spend on BA Rewards flights and the travel insurance protections providing you use the card as specified in their T&Cs.
I currently hold the British Airways Premium Plus card as I’m looking to maximise the Avios I hold and earn companion vouchers for future long-haul travel. I’ve given my partner a supplementary card as every £ they spend also contributes to the £10,000 threshold for the voucher ensuring it can be earned more quickly. After I’ve earned the voucher I’ll be downgrading to the free card where I’ll also receive a pro-rata rebate on the £250 annual fee.
If you are interested in doing something similar, then you can apply through my referral link here where I’ll receive 9,000 Avios and you’ll receive a limited time offer of 50,000 Avios instead of the regular 25,000 Avios (offer ends on 20th February 2024)2.
What’s the right card for you?
This really depends on your lifestyle, your goals, and your general approach to money. Which aspect of your life do you want to maximise? Is it travelling, reducing the costs of your everyday spending, or having the flexibility to do both?
All three categories of cards have their perks. If you’re purely focusing on travelling and love British Airways, then the Avios cards have their place. If you don’t travel much, then the cashback cards may be an option, but if you want the flexibility to do both, then the Amex Membership Reward cards are a clear winner.
One strategy is to perhaps hold more than one card if you’re eligible to do so. For example, you could have the free BA Amex card and after spending the required £12,000 to earn the companion voucher, you could apply for the Gold card which is free for the first year to begin earning points which can be transferred and redeemed with a larger variety of retailers, hotels, and airlines.
You can also use this strategy with credit cards from different companies which we’ll cover in future issues.
Outro
Your American Express card is more than just a payment method; it's a gateway to a world of possibilities. Align your card choice with your lifestyle, spend responsibly, and watch as every transaction brings you a step closer to your next reward.
If you’re interested in applying for an American Express card then I’d recommend checking your eligibility here.
See you next week 👋
Legal disclaimer:
The content provided is for informational purposes only and is not intended as financial advice. While efforts are made to ensure accuracy, the author accepts no liability for errors, omissions, or any loss or damage arising from its use. Readers are advised to consult with a professional for financial decisions. Offers and links mentioned are subject to change without notice and are not guaranteed by the author.
Companion vouchers let you either take a companion with you in the same flight and cabin or, if travelling solo, a 50% discount on the Avios price you pay for your flight. These are based on Avios reward flights.
In order to qualify for the Amex welcome bonuses you must ensure you have not held an Amex card of that category for the last 24 months. For example, I previously held a Gold card until last year meaning I am not eligible for welcome bonuses on the Platinum card because they’re both Membership Reward cards. However, I am eligible for the welcome bonus on the British Airways American Express Premium Plus card. If you’re unsure, then contact Amex for clarity on your particular situation.