If you cancel Amex Platinum to save the fee, the Amex Rewards Credit Card will keep your Membership Rewards points alive

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The second biggest topic in my inbox at the moment, after airlines not refunding payments, is the cancellation of fee-charging American Express cards.

Most of these relate to American Express Platinum.  This comes with a chunky £575 annual fee, but many HFP readers can make the numbers work because of the strong benefits package.  This includes:

travel insurance for you and your family, plus up to five supplementary cardholders and their families

car hire insurance

2 x Priority Pass airport lounge access cards, each of which allows a free guest on each visit (so a family of four is covered)

mid-tier status in Hilton Honors (Gold), Marriott Bonvoy (Gold Elite), Shangi-La Golden Circle (Jade), Radisson Rewards (Gold) and MeliaRewards (Gold)

£10 per month of Addison Lee taxi credit

Eurostar lounge access

…… and lots of other bits and bobs.  My full review of American Express Platinum is here.  The application form is here (and comes with 30,000 Membership Rewards points).

But there’s a snag …..

Paying almost £50 per month for these benefits works out well for many readers.  However, paying £50 per month for The Platinum Card when you’re not travelling is clearly NOT great value.

Many readers have asked me about American Express pausing the annual fee, or offering partial refunds.  To date, no-one has reported getting any financial concessions from them.

However, if you cancel, you receive a pro-rata fee refund.  This could put a few hundred pounds back in your pocket in these tricky times.

(One caveat: if you cancel, you will have no travel insurance if you have no other cover.  If you have non-refundable trips booked for well in the future, ensure you have coverage as you could fall ill at any time.)

There is no annual bonus on The Platinum Card

Many American Express cards offer an annual bonus when you hit a certain spend target:

The British Airways Premium Plus American Express card offers a 2-4-1 companion voucher for Avios redemptions when you spend £10,000 per year (BA Amex review here)

The Marriott Bonvoy American Express card offers Gold Elite status when you spend £15,000 per year and a (very restrictive) free night voucher when you spend £25,000 per year (Marriott Amex review)

American Express Preferred Rewards Gold offers 10,000 Membership Rewards points when you spend £15,000 per year (Amex Gold review)

On these three cards, it may make sense to continue paying the annual fee during these low-spending, no-travelling months in order to ensure you hit your annual spend target.

The Platinum Card does NOT have any annual spend bonus.  If you cancel now and reapply in 3, 4 or 6 months time when your travelling starts to pick up again, you haven’t lost anything.

The only risk is losing your Membership Rewards points

The only short-term downsides of cancelling your American Express Platinum charge card is that you are required to empty out your Membership Rewards points account.

Because Amex points can be transferred to many different airline and hotel partners, they are more valuable than airline or hotel points.  You shouldn’t convert them until you need them.

If you are forced to transfer them because you close your card down, you may regret it later.  American Express isn’t going bankrupt any time soon.  We can’t say that about many Membership Rewards transfer partners at the moment, especially the airlines.  The safest place for your points is with American Express.

Since late 2017, there has been a solution that:

lets you keep your Membership Rewards points account open, and

allows you to stop paying an annual fee for either the Gold credit or Platinum charge card

We very rarely write about it on HFP so I thought I would run through it again today.  This card is the answer:

Amex Rewards Credit Card

You can apply for the little-known American Express Rewards Credit CardFull details are here.

This card has NO ANNUAL FEE and lets you collect Membership Rewards points.

For simplicity, I will occasionally refer to this card as ARCC as ‘American Express Rewards Credit Card’ is a  bit of a mouthful.

What is the American Express Rewards Credit Card?

ARCC is a standard Amex-branded credit card.  It has no annual fee and no substantial benefits, except for the ability to collect Membership Rewards points at 1 point per £1 spent.

There used to be three versions of this card, but in Autumn 2019 they were consolidated to jut one.

The version which remains has a 5,000 Membership Rewards points bonus and a representative APR of 22.9% variable (click here).   You need to spend £2,000 within three months to receive the bonus.

It is unlikely that many (any?!) Head for Points readers will qualify for the bonus because you cannot have held any personal American Express card in the previous 24 months.  That’s not why you’re applying though.

Once your American Express Rewards Credit Card is active, you can cancel your Platinum charge card in the knowledge that your Membership Rewards points balance is safe.

You will be saving roughly £50 per month on your Platinum card.  Once your travelling starts to pick up, you can re-apply for The Platinum Card and start getting all the insurance, lounge and status benefits again.

You can apply for the FREE American Express Rewards Credit Card here.

PS.  If you have the free version of the British Airways American Express credit card but do not spend £20,000 on it generate the 2-4-1 voucher, you should dump it.  This card is better for you.  This HFP article explains why the Amex Rewards Credit Card is better than the free British Airways American Express card.

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 financial products 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.

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Comments

  1. I have a similar thought process with my Virgin Atlantic Reward+ credit card. I pay the £160 fee on the basis that my annual spend will be enough to make the miles I get cost me a rate I am happy with. Last year cost me 0.63p per mile (allowing for the fact I would have got half the miles on the free card). However that doesn’t work when I cannot spend money on travel, which is the largest part of my normal annual spend. Mulling over whether to renew or revert to free card when the time comes around (unless Virgin offer anything to tempt me to stay with the fee paying card).

    • I’ve just cancelled my Virgin card for this reason. Due to renew next week, phew!

  2. Mike P says:

    I’ve just downgraded from the BA Premium Plus card to the free version for the first time since 2006 having held the BAPP continuously since then. I had already earned this year’s two for one voucher and anticipate very little spend with BA between now and October. I did this yesterday and received a pro-rata refund of £104 this morning, very swift and efficient as usual by AMEX

  3. Titus Adduxas says:

    I’m about to cancel my Gold card (once my annual bonus hits it). I was going to then wait two years before reapplying but it seems I can reapply almost immediately and still get the year free membership and the spend bonus ( though not if course the sign up one).

    Getting the free ARCC would presumably not change either of those facts and I would hope not affect the BAPP card which I’m due to reapply for in August.

  4. What is the situation with chargeback if you downgrade your card? I recently downgraded my BA Amex to the free version. I paid for £2k of flights on the premium card. If the airline goes down, will I still have section 75 cover?

  5. Does anyone know if I cancel my virgin card before points have posted, to avoid the annual fee, will the points post to flying club afterwards?

  6. Andy Morgan says:

    I hold Platinum and a Gold Biz Charge Card. If I cancel the Platinum (as I have met the spend bonus), my MR should still remain with the GBCC correct? I assume they are linked?

    • Do you 1 MR account or 2? If points from both cards go into the same account then they are linked. If you have 2 MR accounts with 2 points balances and 2 log-ins then they are NOT linked and the Platinum points would be lost (unless you call Amex and they can merge them).

      • N.b. You can have 2 MR accounts, with 2 points balances under 1 login.
        It might not be intentional, but there are a non-trivial number of people like that.

      • Andy Morgan says:

        I called Amex. They’ve swapped Platinum for Gold with no fee for a year, and the MRs remain.

  7. I’ve just applied for the Gold credit card to keep my Amex reward points alive. I’m assuming I will use them within the first fee-free year, then cancel to reset the two year Platinum sign-up bonus at that point.

  8. Today my ARCC arrived as I wanted to do exactly as this article is suggesting.

    I have added the ARCC to my online services account and it is showing alongside the Amex platinum.

    However the points are still showing as two separate balances. Do I need to wait or can I now cancel platinum without losing the points?

    Thanks

    • Charlieface says:

      It’s supposed to merge automatically. I think you need to call

      • Thanks.

        I called and they confirmed that by cancelling Platinum the points can then merge to the new card… I’m a little dubious but let’s wait and see…

    • Relaxo says:

      You definitely need to get them to Merge before shutting down Platinum. If you do not you will have 30 days to use your platinum points. I have just done this. Merge took 2 days to complete, but could take upto 30 days.

      • Thanks for the tip. I’ve just spoken to them via chat within the app and managed to get there in the end. Initially the advisor tried to suggest it was too late as I’d already cancelled but I pushed and in the end they agreed to merge which will take 5-7 days.

  9. Zebedee says:

    What happens to Priority Pass membership if I cancel my Amex Platinum? I’ve recently received new Priority Pass cards which have an expiry date more than 2 years away – if I cancel my Amex Platinum tomorrow will continue to be able to use the priority pass cards until their expiry date?

  10. Any comments/advice on going for this rather than Green? Do you get better offers in Green card?

  11. David says:

    Thanks for the article.

    We decided to cancel our card. Pleased to save £575 a year.

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