American Express® Gold Card Review: The Frugal Traveler’s Generous Card

The American Express® Gold Card (rates & fees) is a compelling rewards card for those looking to earn points quickly.

It’s got generous point multipliers for home chefs and restaurant-goers as well as dining credits for takeout enthusiasts. Because it’s a travel rewards card, it offers rewards on flights to offset the cost of your vacations, too.

Let’s take a look at what the Amex Gold card has to offer.

Amex Gold Welcome Offer

If you’re approved for the card, your top priority will be earning its welcome offer.

As with all Amex cards, you’re limited to one welcome offer per card per lifetime, so make sure you’re eligible before applying. Similarly, Amex recently changed the eligibility criteria for the Gold card’s welcome offer, specifying the following in their terms:

“You may not be eligible to receive a welcome offer if you have or have had this Card, the Premier Rewards Gold Card, the Platinum Card®, the Platinum Card® from American Express Exclusively for Charles Schwab, the Platinum Card® from American Express Exclusively for Morgan Stanley or previous versions of these Cards.”

That means if you’re already holding or have held The Platinum Card® from American Express, you won’t be able to earn the welcome offer on the Amex Gold card.

The typical welcome offer on the Amex Gold card is about 60,000 Membership Rewards points after spending about $6,000 with your card. That said, welcome offers have gone as high as 100,000 points.

The spending time-frame usually six months, depending on the current offer.

When redeemed through the Amex Travel portal, points are worth one cent each, making the typical welcome offer worth about $600 ($1,000 at its highest). However, their true value lies in transfer partners (more on this later).

Amex Gold Bonus Categories

The Amex Gold card (rates & fees) offers the following bonus spending categories:

• 4x at restaurants up to $50,000 in purchases per calendar year, then 1x
• 4X points at U.S. supermarkets on up to $25,000 per year (1X points thereafter)
• 3X points on flights purchased directly with airlines or via Amex Travel
• 1X points on all other purchases

If you see a pattern here, you’d be right—the Amex Gold is the card for foodies.

Whether you like to dine out or cook for yourself, purchases in these categories will earn quadruple points per dollar spent, which is a generous return.

The fact that you can earn 4X points on restaurants worldwide instead of limiting you solely to the U.S. also elevates the rewards earning potential on this card.

Unfortunately, the bonus on flights isn’t as comprehensive, as it offers bonus points on flights booked directly with airlines or through Amex Travel only. Other travel purchases, such as hotels, guided tours or rental cars earn just a single point per dollar spent.

Nevertheless, if you’re able to maximize the grocery and dining categories, you could end up with a significant number of Membership Rewards points. The average American spent $9,343 on food purchases in 2022, according to the BLS Consumer Expenditures report.

If that amount was charged on your Amex Gold card, you’d earn 37,372 Membership Rewards points—more than enough for some sweet redemption opportunities. Of course, you may spend even more than that on grocery and dining purchases, making the Amex Gold card even more valuable.

How Much Are Membership Rewards Points Worth?

With the Amex Gold, you’ll earn Membership Rewards points—an American Express-specific currency that you can redeem in various ways.

The two main ways to redeem your rewards are for travel components booked through the Amex Travel portal and for flights and hotel rooms booked by transferring points to one of Amex’s travel partners.

Amex Travel

Membership Rewards points redeemed through the Amex Travel portal hold specific values calculated based on what travel component you’d like to book.

That means if you redeem your welcome offer of about 60,000 for prepaid hotels, cruises or vacations, you’d get a value of about $420.

These point valuations aren’t ideal. In most cases, you’d be better off transferring your points to one of the airline or hotel partner programs of American Express.

Transfer Partners

American Express partners with many loyalty programs. However, not all transfer ratios are 1:1. Here’s a summary of Amex’s current transfer terms:

It’s best to utilize these transfer options when you want to book a business or first-class flight. When you book such tickets through the portal, your redemption rate is just one cent per point—no more and no less.

When you transfer points to a partner, you can increase that redemption rate to five cents per point, eight cents, or even 15 cents per point in some rare cases. Your individual valuation will vary, but you can easily get more than one cent per point by transferring to airline partners.

What if you don’t mind flying in economy? Can you get that elevated redemption value from coach tickets, too? The answer is yes. You can still get good value by booking an award ticket with miles when cash ticket prices are high.

Another thing to note is that American Express charges an excise tax fee of $0.0006 for every point transferred to a U.S.-based airline. For example, transferring 10,000 Membership Rewards to Delta SkyMiles will cost you $6. Fortunately, the fee is capped at $99. Even if you transfer more than 165,000 Amex points, the fee won’t exceed $99.

In comparison, neither Citi nor Chase charge these fees to transfer their flexible points to partner airlines. The fact that American Express passes on the tax to the consumer is less than ideal. For that reason, you may be better off using your Citi ThankYou Points or Ultimate Rewards when transferring to domestic partner airlines.

Statement Credits: American Express Gold

The American Express Gold Card offers multiple statement credits to cardholders.

Let’s look at what kind of value they can add to your card membership.

$Up to 120 Dining Credit

With the up to $120 Amex Gold dining credit, you can get an up to $10 discount every month you use your card to make a purchase at one of the eligible restaurants, such as Grubhub, The Cheesecake Factory, Goldbelly, Wine.com and Five Guys.

The credit isn’t available all at once but is instead issued in $10 monthly increments.

By dining at one of the aforementioned dining establishments once per month, you will get up to $120 back per calendar year in statement credits. The credit doesn’t roll over to the following month, which means you lose it when you don’t use it.

At first, the discount seems great. Who doesn’t love free food?

However, once you understand that it’s divided into monthly statement credits of $10, you’ll realize that you need to be a bit strategic about how you use it to maximize its value.

Up to $84 Dunkin’ Credit

You’ll get up to $7 in monthly statement credits (up to $84 a year) after you enroll and pay with the American Express® Gold Card at Dunkin’ locations.

Up to $100 Resy Credit

You can get up to $50 in statement credits semi-annually to dine at U.S. Resy restaurants or make other eligible Resy purchases. To take advantage of this credit, just use your Amex Gold card at any restaurant listed on resy.com and you’ll earn up to $50 in statement credits every 6 months.

$100 Hotel Credit

As an Amex Gold cardholder, you have access to The Hotel Collection in the Amex Travel portal. This card comes with an annual $100 experience credit when you book a minimum stay of two nights with The Hotel Collection, which varies by property.

$120 Uber Cash Credits

You can add your Amex Gold card to your Uber account and receive $10 in Uber Cash credits every month. You can use these credits for both Uber Rides and Uber Eats purchases. 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. The Amex benefit may only be used in United States.

You’ll also earn 4X points on Uber Eats purchases made with your Amex Gold card.

Amex Offers

Amex Offers is available to all American Express members including co-branded cardholders, so it’s not exclusive to the Gold Card.

With Amex Offers, you’ll have access to discounts or bonus points when purchasing from a variety of merchants. The list of merchants is extensive, and new offers are added regularly. Just make sure you keep an eye on the expiration date of each offer.

With little effort, the money you save with Amex Offers could easily offset your annual fee. Simply enroll in Offers, use your Amex card to pay and wait for the statement credit or the bonus points to post.

Amex Travel Protections

As a travel rewards card, the Amex Gold card also comes with a host of travel protections.

Trip Delay Insurance

If your trip is delayed for 12 hours or more, you’ll qualify for reimbursement of reasonable expenses, such as meals, lodging, toiletries and medication purchased within 48 hours.

You’re covered for up to $300 per trip and you can make up to two claims per 12 consecutive months. To receive coverage, you must charge the full amount of a covered trip to your American Express card.

Baggage Insurance Plan

In the event of baggage damage or baggage loss while in transit, you’re covered for up to $500 per covered person for checked luggage and up to $1,250 per covered person for carry-on luggage. The card member, their spouse and dependent children younger than 23 are covered.

For residents of New York State, there’s an aggregate maximum limit of $10,000 for all covered persons per covered trip.

Car Rental Loss and Damage Insurance

Rental vehicles are eligible for insurance for up to 30 consecutive days. Theft and damage are covered for up to $50,000 per rental agreement. The coverage is secondary, which means that American Express will cover what your personal insurance won’t.

You’ll need to decline the collision damage waiver your rental car company offers and charge the entire rental car cost to your Amex Gold card to be covered.

Global Assist Hotline

Should you need to obtain customs information for a country you plan to visit, vaccination information or foreign exchange rates, the Global Assist Hotline is there for you 24/7. The service is also available if you lose your passport, need an emergency cash wire or medical assistance when things go wrong on a trip. The service itself is free, but you’re still on the hook for all related charges.

Amex Gold Card vs. The Platinum Card® from American Express

The Amex Gold is considered a mid-range card, but it packs a punch when it comes to earning points. However, it doesn’t provide many of the premium travel benefits that you might be looking for as a frequent flyer.

If you find yourself at airports frequently, The Platinum Card® from American Express is loaded with perks and benefits for an annual fee of $695 (see rates & fees). It’s perfect for road warriors as well as those trekking across the world. What it lacks in earning rates it makes up for in benefits.

Here’s a summary of what the Platinum card has to offer:

• Earn 5X Membership Rewards® Points for flights booked directly with airlines or with American Express Travel on up to $500,000 on these purchases per calendar year (1x thereafter).
• 5X points on eligible prepaid hotel reservations when booked with American Express Travel
• Complimentary premium status for numerous car rental companies (enrollment required)
• Access to the American Express Global Lounge Collection, with more than 1,400 lounges across 140 countries (including Airspace Lounge, The Centurion Lounge, Delta Sky Club, Escape Lounges, Lufthansa Business and Senator Lounges, Plaza Premium and Priority Pass Select)
• Access to the American Express International Airline Program
• Access to the Fine Hotels and Resort Collection for bookings made through American Express Travel
• Marriott Bonvoy Gold and Hilton Honors Gold elite status (enrollment required)
• Up to $200 hotel credit on prepaid Fine Hotels + Resorts or The Hotel Collection (a minimum two-night stay is required) bookings through American Express Travel
• Up to $240 digital entertainment credit, issued in $20 monthly statement credits for eligible purchases on Disney+, The Disney Bundle, ESPN+, Hulu, Peacock, SiriusXM and the New York Times (enrollment required)
• Up to $300 Equinox credit, given in the form of statement credits
• Up to $199 per year in statement credits toward a CLEAR® Plus membership
• Up to $200 airline incidental fee credits, given in the form of statement credits
• Up to $200 Uber Cash, issued in increments of $15 per month with a bonus $20 in December
• Either a $120 statement credit every four years for a Global Entry application fee or a statement credit up to $85 every 4.5 years for a TSA PreCheck application fee (when applying through a TSA official enrollment provider), when charged to your Platinum card. Card Members approved for Global Entry will also receive access to TSA PreCheck at no additional cost.
• No foreign transaction fees

Although the higher annual fee on the Platinum card seems a lot more intimidating, you have to consider the additional travel perks that come with it. Lounge access alone can be worth its weight in gold, especially when your adventures take you to destinations across the globe.

If you have trouble choosing, it’s worth noting that it’s possible to hold both cards at the same time. Make one your points generator with dining and grocery purchases and the other your ticket to lounges. The cards are different enough to get value from both.

Likewise, something to consider is the recent changes Amex made to its welcome offer eligibility rules for the Gold card. With that in mind, you’d be better off applying for and earning the welcome offer on the Amex Gold card before applying for the Platinum card and earning its welcome offer. Doing the reverse is no longer allowed.

Is the Amex Gold Worth the $325 Annual Fee?

The answer to this question depends on your usage of the card.

Do you spend enough at participating restaurants to max out the $120 annual dining credit? Will you also book a minimum stay of two nights with The Hotel Collection every year to max out your $100 experience credit? Will you get the full $120 worth of your annual Uber Cash credits?

If you’re able to redeem all of these credits, you’ll be able to offset the annual.

However, some of the credits aren’t exactly easy to use—unless you just can’t live without a slice of cheesecake every month.

Consider the card’s drawbacks before making a decision.

If you’re newer to points and miles or just haven’t opened a new credit card in a while, you’ll want to consider the Chase 5/24 rule, as it might make more sense to get a Chase card first.

That said, if you spend at least $6,250 per year combined on dining and grocery purchases, you’d at least break even on the annual fee. If you charged more than this amount to the card for dining and grocery store purchases, you’d offset the annual fee by even more.

Final Thoughts

From a culinary connoisseur standpoint, the Amex Gold has a lot going for it: generous rewards in the right spending categories as well as flexible points. From a frugal traveler perspective, the card could include more travel benefits.

Still, the ability to transfer points to a wide range of airline and hotel partners paired with the airline fee credit makes it a competitive option for a mid-range travel card.

Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by Amex Assurance Company.