American Express (Amex) offers two popular premium credit cards: the Amex Cobalt and the Amex Gold. Both cards come with great rewards, but they cater to different types of spenders. If you’re stuck between the two, this guide will help you understand the differences and decide which one better fits your needs.
Key Features of Both Cards
Before discussing comparisons, let’s examine some of the key features of the Amex Cobalt and Amex Gold cards. Both offer valuable rewards and benefits, but the specifics vary.
Amex Cobalt Card
- Annual Fee: $12.99 per month ($155.88 annually)
- Welcome Bonus: Up to 30,000 points in the first year
- Rewards:
- 5x points on dining, grocery, and food delivery
- 3x points on streaming services
- 2x points on transit and gas
- 1x point on all other purchases
- Rewards:
- Insurance: Travel insurance, extended warranty, purchase protection
- Foreign Transaction Fee: 2.5%
Amex Gold Card
- Annual Fee: $250 per year
- Welcome Bonus: 60,000 points after spending $4,000 in the first 6 months
- Rewards:
- 4x points on restaurants and dining
- 3x points on flights booked directly with airlines
- 1x point on all other purchases
- Insurance: Travel insurance, rental car insurance, purchase protection
- Foreign Transaction Fee: None
Now that we have a clear idea of the basic features let’s break it down further to see which card might suit you better.
Rewards Comparison
Amex Cobalt: For Everyday Spenders
The Amex Cobalt card could be a great option if you spend a lot on groceries, dining out, or food delivery. With 5x points on dining and grocery purchases, this card is designed to give maximum rewards on what most people spend daily.
- 5x points on dining and grocery: This is one of the highest point multipliers in the credit card market. Whether grabbing a meal at a restaurant or stocking up on groceries, you’ll earn many points quickly.
- 3x points on streaming services: If you subscribe to services like Netflix or Spotify, you’ll rack up points here, too.
- 2x points on transit and gas: People who use public transportation or drive regularly can earn extra points on their commute.
The Amex Cobalt rewards are powerful for millennials and urban dwellers who spend on food, entertainment, and commuting.
Amex Gold: For Travelers and Dining Enthusiasts
The Amex Gold card is best suited for those who travel frequently and enjoy dining out but don’t necessarily spend much on groceries.
- 4x points on restaurants: While this isn’t as high as the Cobalt’s 5x on dining, the Gold card offers this on any dining, anywhere in the world, making it more versatile for international travelers.
- 3x points on flights: If you book flights directly with airlines, you’ll earn extra points.
- 1x point on all other purchases: The Cobalt’s basic earning rate is lower than that of the Cobalt, making it less rewarding for general spending.
The Amex Gold card can deliver serious value for people who prioritize travel and are willing to pay a higher annual fee for rewards.
Annual Fees and Costs
Amex Cobalt: Budget-Friendly Monthly Fee
The Amex Cobalt has a monthly fee of $12.99, around $155.88 annually. This can be easier for those who prefer smaller, regular payments over one large annual fee. It also makes the Cobalt card seem more approachable, especially for younger cardholders.
Amex Gold: Higher Annual Fee, More Premium Benefits
The Amex Gold has a flat annual fee of $250. While this is higher than the Cobalt, it has perks like no foreign transaction fees and higher point-earning rates on flights. If you’re a frequent traveler or spend a lot on dining out, the extra benefits outweigh the higher cost.
Travel Perks and Insurance
Amex Cobalt: Solid for Occasional Travelers
The Amex Cobalt card offers basic travel insurance, including travel accident and baggage insurance. However, it doesn’t cover as many travel-specific perks as the Gold card. If you only travel occasionally, this might be enough.
Amex Gold: Designed for Frequent Travelers
If you’re a frequent traveler, the Amex Gold offers more extensive travel benefits, including trip delay, baggage, and rental car insurance. Plus, there’s no foreign transaction fee, making it a better option for international travelers.
For travelers, the Gold card is generally the stronger choice, offering more protection and perks when traveling.
Which Card Is Right for You?
Choose the Amex Cobalt If:
- You spend a lot on dining, groceries, and everyday purchases.
- You prefer a smaller monthly fee over a sizeable annual fee.
- You value rewards on streaming services, gas, and public transportation.
- You aren’t a frequent international traveler and don’t mind paying a 2.5% foreign transaction fee.
Choose the Amex Gold If:
- You frequently dine out and travel, especially internationally.
- You prefer higher rewards on travel-related spending, like flights.
- You are willing to pay a higher annual fee in exchange for premium perks like no foreign transaction fees and comprehensive travel insurance.
- You’re looking for a card that offers broader dining rewards worldwide.
Conclusion – Cobalt or Gold?
Ultimately, both the Amex Cobalt and Amex Gold cards offer excellent rewards and perks, but they cater to different types of consumers. If you’re an everyday spender who wants to maximize points on groceries, dining, and entertainment, the Amex Cobalt might be your best bet. On the other hand, if you’re a frequent traveler who enjoys dining out and wants more travel perks, the Amex Gold could be a better fit.
Choosing between the two depends on your spending habits and lifestyle. Take a close look at where your money goes, and pick the card that offers the most value based on your spending!