Why Amex Gold is the ideal starter Amex for a miles and points newcomer

Links on Head for Points may pay us an affiliate commission. A list of partners is here.

Today I want to take a look at the American Express Preferred Rewards Gold credit card.  I mention this card quite a bit on Head for Points but if you are new to this hobby then it might not be fully clear why I recommend it as the best ‘starter’ Amex card.

Let’s get the boring legal bits out of the way first.  The card has a representative APR 57.6% variable including the annual fee (free in year 1) based on a notional £1,200 credit limit.  The interest rate on purchases is 22.9% APR variable.

Whilst you may think that Amex has a slightly lofty reputation if you have never had one before, there is no longer a minimum income requirement. This doesn’t mean that they will accept anyone – it means that the gap between your income and expenditure is more important than your income alone.

Forget the idea that ‘no-one accepts Amex’. B&Q is the only major retailer that does not take American Express. Every other big chain takes it. You will have issues in some smaller stores, and it is rare that you can pay a bill with an Amex, but acceptance (as a % of your shopping bill) is good.

With that out of the way, let’s look at why I rate the American Express Preferred Rewards Gold credit card.

(EDIT: this article was updated on 1st December 2019 and all the information is correct as of that date.)

Amex Gold 350

The Amex Gold card is free for the first year

Amex Gold has an annual fee of £140. This is waived in your first year, so you can have some time to see if it suits you or not. You can cancel at any point. If you continue after the first year, you can still cancel at any time and get a pro-rata refund on your fee. Amex is the only UK card company to do this.

The Amex Gold sign-up bonus is very generous

You get 10,000 American Express Membership Rewards points (worth 10,000 Avios) when you sign up and spend £3,000 within three months.

10,000 points is a good deal because ….

The Amex Gold rewards scheme is a valuable convertible currency

You can transfer Membership Rewards points into MANY different things. Take a look at their website.

We tend to focus on airline schemes (1:1 into Avios, Virgin Flying Club, Flying Blue, Delta Skymiles, Etihad Guest, Emirates Skywards etc) or hotel schemes (1:2 into Hilton Honors, 1:3 into Radisson Rewards, 2:3 into Marrriott Bonvoy).

In reality there are lots of other options, including High Street gift cards. I wrote this article on how to get the best value from Membership Rewards points. It is possible, if you are smart, to get over £100 of value from your 10,000 Membership Rewards points sign-up bonus.

‘Convertible currencies’ are worth more to you. It is better to have 50,000 Amex points than 50,000 Avios points. Why? Because your 50,000 Amex points would get you 50,000 Avios points if you needed them – but they could also get you a heck of a lot more besides.

Do you qualify for the Amex Gold sign-up bonus?

If you have never held an American Express card before, you will definitely get the bonus.  You can skip the rest of this section!

You will receive the 10,000 bonus points if you have not held a personal or small business American Express card in the previous 24 months.  Cards issued by MBNA or Lloyds Bank do not count.

You will not receive the sign-up bonus if you have a Corporate or Business American Express card via your job and you receive Membership Rewards points from it. If your Corporate or Business card does not provide Membership Rewards points then you are OK.

You will definitely receive the bonus if you are only a supplementary cardholder on someone else’s American Express card. As far as Amex is concerned, that card belongs to the primarily cardholder and does not make you an ‘existing cardholder’.

If you do not qualify for the bonus, you can still apply.  You still receive the other card benefits, including the two free airport lounge passes and ‘no fee in the first year’.

You get 2 free airport lounge visits per year

As an Amex Gold cardholder you receive free membership to Lounge Club, a global network of airport lounges. Each year you get 2 free visits – either 2 visits for yourself or 1 visit for yourself and a guest.

The Lounge Club website shows you which lounges you can use including many at Heathrow and Gatwick.  Additional visits after your two free ones are charged at £20 per person per visit. You receive 2 additional free passes each year if you renew your Amex Gold membership.

Get 10,000 bonus points for spending £15,000 per year

The earning rate on Amex Gold is 1 Membership Rewards point per £1 spent. This is OK but not exceptional – although you should put some value on having a ‘convertible’ currency rather than being forced into taking Avios, Virgin miles etc via a dedicated airline credit card.

However, if you can spend £15,000 per year on your Amex Gold, the maths changes. You would receive 10,000 bonus points at the end of your card year. If you spent exactly £15,000, this means you would have earned 25,000 points – a rate of 1.6 points per £1. This is very good going.

Those are the key perks of American Express Preferred Rewards Gold as I see them. There are various other benefits attached to the card as well, including:

double points for foreign spending (but there is a 3% fee for FX charges, so this is only a good deal if you are spending money your employer will reimburse)

double points on airline transactions

10% discount and free additional driver on Hertz bookings

$75 in-hotel credit and an upgrade (based on availability at check-in) when booking 350 4-5 star hotels worldwide

Conclusion

The American Express Preferred Rewards Gold credit card is a low cost (zero cost, actually, in Year 1) and high reward way to begin a relationship with Amex.

You will still need a good Visa or Mastercard for places where Amex isn’t accepted of course.  Here are my suggestions.

Over time your card needs may change – most people move on to the British Airways Premium Plus American Express because of the hugely valuable 2-4-1 voucher – but Amex Gold is a good way to get started. Even if you eventually decide that the miles and points hobby is not for you, there are still plenty of other valuable ways to use your Membership Rewards points.

The American Express Preferred Rewards Gold application page is here.

Disclaimer: Head for Points is a journalistic website. Nothing here should be construed as financial advice, and it is your own responsibility to ensure that any product is right for your circumstances. Recommendations are based primarily on the ability to earn miles and points and do not consider interest rates, service levels or any impact on your credit history.  By recommending credit cards on this site, I am – technically – acting as a credit broker.  Robert Burgess, trading as Head for Points, is regulated and authorised by the Financial Conduct Authority to act as a credit broker.

REGISTER NOW: IHG launches its new Accelerate-style promotion for January to April
How to redeem Avios for long-haul business class flights on Air Italy

Head for Points is sponsored by:

Magazine montage

Up to 30% off in Hilton's Winter Sale

Click here to find out more and book

Click here to join the 14,500 people on our email list and receive the latest Avios, miles and points news by 6am.

Amazon ad
About Head for Points

We help business and leisure travellers maximise their Avios, frequent flyer miles and hotel loyalty points. Visit every day for three new articles or sign up for our FREE emails via this page or the box to your right.

Comments

  1. Gold is a better earner for us:one partner is the account holder the other the supp. At the end of the year will pick up 10,000 points for putting k15 through it. I’ll refer partner for a Gold card giving me another 9,000 points so 39,000 points in all just in bonuses. Then I’ll close mine down and be the supp on my partner’s Gold card for the next year. We get two points for any overseas travel spend and we travel a fair bit. This includes purchases in Duty Free so other half gets double points for buying tobacco. Try and get that in the UK! Also we don’t have a wallet full of cards anymore.

    The Platinum benefits don’t compare anymore IMHO, as the only real benefits were lounge access and breakfast at Marriott and Hilton for matched Gold status. But we fly business or higher anyway so lounge access comes with that (more reliable than PP) and Marriott dropped breakfast for Gold members. However we – like many people here – have a back up MasterCard or Visa (Hilton Barclaycard). You can get breakfast at many hotels now just by paying with visa.

    The big difference of course is the sign up bonus with Platinum, but now that’s capped at 90,000 points per year and, if you saved them just for flights which are now pretty cheap, then personally think this benefit’s lost it’s sparkle for £450. I can make over 90,000 points a year (includes bonuses) just putting my travel through the Gold card and it’s only going to cost me one months premium (Genghis suggests £12). You don’t get double points for overseas travel spend with Platinum either. Don’t know how Amex Gold insurance compares to Platinum insurance but we have standalone travel insurance anyway.

    Sure everyone’s got a different view though what works for them. We’ve settled in to this card, it just works for us.

  2. BlueHorizonuk says:

    OT – Does anyone know how long it takes Amex Travel to issue an air ticket. Just booked and called BA to upgrade but they said there is no ticket number attached yet and they can’t do it.

  3. Bit OT.

    Has anyone successfully churned the Virgin cards yet?

    IHG Card related – is it still possible to pay off Amex using this card without incurring fees?

  4. Slightly OT: HSBC WE, churnable? If so what is the waiting time?

    Thanks.

    • Genghis says:

      Yes. @rams1981 reported this is possible. Believe he waited 6 months+.

      • rams1981 says:

        This is correct… currently waiting for the year to end to cancel as bonus now only paid at the end for the 12k spend.

        • Thanks rams1981, cancelled just before Christmas so I’ll put it on the reapply list for the end of June.

  5. Robin N says:

    Slightly O/T but related to AMEX cards.

    If I book a room using Amex Hotel Collection (via Gold Card) or Fine hotels and resorts (via Platinum) at Marriott/Starwood properties, will I still earn points and night credit and have access to my elite status benefits?

  6. Note to the Amex Gold Credit, perhaps you guys know this already but I certainly did NOT – had quite an unpleasant chat with more than just one Amex customer agent on the phone.

    The initial £1,500 credit limit is (officially explained) not the amount you can be in credit to Amex at a point in time, rather it is the maximum total amount you are (officially) allowed to spend per statement month. IF you went above that by paying off some credit during the statement month, and although the app and the website would tell you that your available credit limit is back up / ‘replenished’, Amex could (in theory, have not seen it happen before) charge you an ‘above limit fee’ of £12 (it says on the last page of the monthly pdf statement).

    And here I was, trying to put flight + hotel + some Christmas shopping onto my newly gained Amex Gold Credit to get some points..

    • Genghis says:

      I’d disagree with this and would complain if charged. Amex have a tendency to not follow their own terms.
      The “over limit” fee of £12 is defined as “if you go over your credit limit at any time”. By definition, credit what you owe someone so does not mean amount spent.

    • I came up against this problem when buying a car on Amex. If you ask nicely they transfer you to someone else who changes the rules on your account (but this was when they were all in Brighton).

      • I had a similar conversation with the Amex CC a few monghs ago, this was on the SPG card and different limits and spends, but the guy was adamand that whilst my credit limit was £20k that actually meant you could only spend £20k a month, i was of the opinion he was talking rubbish, so paid off the part of the balance (half way through the month) and charged a fresh £10k transaction, so £30k spend in 1 month. It all went through with no issues.
        Before you ask, why such ridiculous spend, i was taking advantage of an SPG triple points offer

  7. So I’ve just earned my BA companion voucher and I’ve downgraded my Amex to the blue one to keep the voucher valid. Although I don’t tend to use this amex. My gold card is due for its year renewal in March. I won’t quite make the 15k spend so want to cancel this to reset the 6 months to reapplying.

    Can anyone recommend an amex in the mean time to use? That won’t affect the 6 months reset for the gold card. Thanks

    • Genghis says:

      SPG?
      “So I’ve just earned my BA companion voucher and I’ve downgraded my Amex to the blue one to keep the voucher valid”. Your 241 will remain valid even if cancel completely.

    • TGLoyalty says:

      No need to downgrade to keep your vocher. It’s completely safe when you cancel and then you can get a sign up bonus in 6 months time for a new BAPP

  8. Cheeky but can you refer yourself and get the bonus miles from a Amex Gold to Amex BAPP card ?
    Or vice versa

    • Genghis says:

      Yes

      • I ask because as a solo traveller the 241 offers are of no interest. So moving every 3 months and picking up the bonuses seem the best way. Probably doesn’t help my credit report !

  9. Slightly OT: Just seen on my BAPP a referral offer of 18k Avios for the next friend, anyone seen this before?

  10. OTT:
    I would like to book flights from UK through Amex travel. However there is no option for 12-15 year olds and full fare is charged.
    Do you need to claim APD from Amex after booking?

  11. Off topic, but I’ve been credited the 250 points from the Shangri-La app. Looking to redeem them, as I believe I read on here that you could use them for $25 at the Shard, but the smallest redemption it’s allowing me is 500 points for $50. I’m not sure if I’m missing something here? Thanks!

    • Hmmm. I have never tried to do one of these. I was under the assumption that there was no minimum if you use them in the restaurant (via getting your card swiped) as opposed to ordering a voucher for collection. Was I wrong?

    • It’s called Instant Rewards – can be any amount, use card (physical or virtual in app) and ID according to website and their support email.

Please click here to read our data protection policy before submitting your comment.