American Express has just announced changes to their Cobalt Card today and all changes seem positive, other then the increased monthly fee that we knew was coming.
I was always a fan of the Cobalt card which is also the one card that we have that is not available in the US surprisingly. I had written an article in February 2018 on why this is the best starter card for someone starting out in the points game and it still holds true today with even better benefits, perks and transfer options.
For starters, the Cobalt is now offering upto 50,000 Welcome Bonus Membership Rewards points – only available to new American Express Cobalt Cardmembers. And, it should be noted that the Cobalt now earns you Membership Rewards points and not Member Rewards Select points, which means you are now able to transfer them to several frequent flyer and other loyalty programs.
Here is the break down of how you can earn upto 50,000 Welcome Bonus Membership Rewards points
20,000 Welcome Bonus when you have at least $3,000 in net purchases posted to your account in your first 3 months of Cardmembership. Additionally, for all the 12 months you would need to spend a a monthly minimum spend of $500 netting you 2,500 each month which would add up to 30,000 points.
Lets look at the earn rate now.
- Earn 5X the points on eligible eats and drinks (up to a combined maximum of $30,000 in net purchases posted to your account annually on these categories.)
- Earn 3X the points on eligible streaming subscriptions
- Earn 2X the points for every $1 at or for (i) stand-alone automobile gasoline stations in Canada, (ii) travel services or travel bookings including air, water, rail and road transport, lodging and tour operator sales, (iii) local commuter transportation in Canada including subway, streetcar, taxi, limousine and ride sharing services.
Basic Cardmembers can earn one additional bonus Membership Rewards point for every dollar charged to your American Express Cobalt Card for eligible hotel and car rental bookings (less credits and adjustments) made through the American Express Travel website where American Express Travel (not the hotel or car rental company) is the merchant. - Earn 1Xfor all other purchase
Additional coverages
You will also have coverage for mobile device insurance of upto $1000.
Supplementary cards
No annual fee on upto 9 supplementary cards per account.
Travel Coverages
It also comes with certain trip cancellation/interruption and other travel coverages i.e. Out of Province/Country Emergency Medical Insurance, Flight Delay Insurance, Baggage Delay Insurance, Hotel Burglary Insurance, Lost or Stolen Baggage Insurance, upto $250,000 of Accidental Death and Dismemberment Insurance and Car Rental Theft and Damage Insurance to your rental car with MSRP upto $85,000.
You can also elect to pay for almost anything with points on your statement where 1,000 points = $10 for any eligible purchase.
Also, note that this is a credit card with a pre-determined amount of credit limit and is not a charge card. This means you can make use of their Plan It – The American Express Installment Program where you can choose a portion of your statement balance to pay in monthly installments for a fixed monthly fee.
As an eligible Basic Cardmember, you can refer a friend and earn a referral bonus for each approved referral, up to a maximum annual referral bonus of 75,000 Membership Rewards points for approved referrals
The only piece of bad news is that the monthly fee has increased from $10 to $12.99 – however current card holders will see the increase only on their next anniversary date.
This is a sweet way to get 5 Aeroplan or Avios for e.g. per $1 on the eats and drinks category upto a maximum spend of $30,000 in a year. You also still have the option to transfer to Hotel partners like Marriott and Hilton.
Thank you American Express, and we now await to see the new offers/benefits on your Gold card.
So, if you have been on the fence to get this card, now is the time.
You can support this blog by applying through by referral link:
http://amex.ca/share/dOMINFs39T?CPID=100373056
Disclaimer: I may receive a referral bonus of 5,000 membership rewards points for your approved application.
Written by Dominic Fernandes aka CanadaPointsGuy.
Image Photo by rupixen.com on Unsplash