Should I Upgrade to Amex Platinum? A Straightforward Answer

The American Express Platinum Card is the heavyweight champion of travel rewards, and upgrading to it from another Amex card is a serious decision. The short answer is this: upgrade to the Amex Platinum if you can realistically utilize its extensive travel and lifestyle benefits to offset the hefty annual fee. If you’re primarily a cashback user, rarely travel, or won’t actively leverage its perks, you’re likely better off sticking with your current card. Let’s dive into the specifics to help you make the right choice.

Unpacking the Platinum Promise: Benefits Worth Considering

The Platinum Card isn’t just a piece of metal; it’s a key to a world of premium experiences. Here’s a breakdown of what makes it so alluring:

The Big Guns: Travel Credits and Perks

• $200 Hotel Credit: Book prepaid hotels through Amex Travel, and you’ll receive an annual $200 statement credit. This is a fairly easy credit to use if you travel even occasionally.
• $200 Airline Fee Credit: Choose a qualifying airline each year and get reimbursed for incidental fees like checked baggage or in-flight refreshments. Understanding the “incidental” definition is crucial; airfare generally doesn’t qualify.
• $200 Uber Cash: Receive $15 per month for Uber rides or Uber Eats orders, with a bonus $20 in December. This benefit alone can add substantial value if you’re already using these services.
• $240 Digital Entertainment Credit: Earn up to $20 per month in statement credits on eligible purchases such as Peacock, Audible, SiriusXM, and The New York Times.
• $300 Equinox Credit: This is a great benefit if you’re already an Equinox member and can use statement credits when you pay for your membership with the Amex Platinum card.
• Hotel Elite Status: Instant Marriott Bonvoy Gold Elite and Hilton Honors Gold status provide perks like room upgrades (when available), bonus points, and free breakfast at select hotels.
• Global Lounge Collection: Access to a vast network of lounges, including Centurion Lounges (Amex’s own luxurious spaces), Priority Pass lounges (enrollment required), and Delta Sky Clubs (when flying Delta). This can significantly enhance your travel experience.
• Global Entry or TSA PreCheck Credit: A statement credit to cover the application fee for either Global Entry (includes TSA PreCheck) or TSA PreCheck every 4 years (Global Entry) or 4.5 years (TSA PreCheck).

Beyond Travel: Lifestyle and Spending Rewards

• 5x Points on Flights and Hotels: Earn 5x Membership Rewards points on flights booked directly with airlines or through Amex Travel, and on prepaid hotels booked through Amex Travel. This is a fantastic earning rate for travel purchases.
• Resy Membership: Complementary Resy Global Dining Access membership, offering preferred access to restaurant reservations.
• Purchase Protection and Extended Warranty: Amex provides robust purchase protection against damage or theft and extends the manufacturer’s warranty on eligible items.
• Amex Offers: Access to a wide range of targeted offers that can save you money or earn bonus points on everyday purchases.
• Premium Concierge Service: Assistance with travel planning, restaurant reservations, and even securing tickets to coveted events.

The Downside: A Fee That Demands Justification

The Amex Platinum Card’s biggest hurdle is its substantial annual fee. This fee is justified only if you are confident you will make use of its services.

• High Annual Fee: Weighs heavily on the decision. You must strategically utilize the benefits to make it worthwhile.
• Relatively Low Everyday Spending Rewards: The card’s earning rates on non-travel spending are generally lower than those of other rewards cards. If you’re looking for a card to maximize rewards on daily purchases, this might not be it.
• Benefit Utilization Required: Many of the Platinum Card’s benefits require active effort to use. If you’re not organized or don’t have the time to plan and book travel strategically, you might not realize the full value.

The Verdict: Is the Upgrade Worth It?

To make an informed decision, ask yourself these questions:

• Do I travel frequently? The Platinum Card is tailored for frequent travelers who can leverage its travel credits, lounge access, and elite status benefits.
• Will I actively use the benefits? Don’t just look at the potential value of the benefits; realistically assess whether you will actually use them.
• Can I offset the annual fee? Calculate the value of the benefits you expect to use and compare it to the annual fee. If the value exceeds the fee, the upgrade is likely a good move.
• Am I willing to plan strategically? Maximizing the Platinum Card’s benefits often requires some planning and effort.
• What are my spending habits? If you spend heavily on travel and dining, the Platinum Card’s rewards structure can be very lucrative.

If you answered “yes” to most of these questions, upgrading to the Amex Platinum Card could be a smart financial move. Otherwise, explore other travel rewards cards or consider sticking with your current Amex card.

Frequently Asked Questions (FAQs)

1. What’s the difference between the Amex Platinum and Amex Gold cards?

The Amex Platinum focuses on premium travel benefits like lounge access, hotel elite status, and travel credits, while the Amex Gold emphasizes everyday spending on dining and groceries with higher earning rates in those categories. The Platinum has a higher annual fee, but also more potential for high-value travel perks.

2. How do I use the $200 airline fee credit?

You must select an eligible airline through your Amex account each year. The credit typically covers incidentals like baggage fees, in-flight meals, and seat upgrades. Airfare usually doesn’t qualify, so carefully review the terms and conditions.

3. Can I add authorized users to my Amex Platinum card?

Yes, you can add authorized users. However, there is an additional annual fee per authorized user. While authorized users get some of the benefits, such as lounge access, they don’t receive their own set of credits (airline fee credit, Uber Cash, etc.). Consider the cost-benefit of adding authorized users.

4. What’s the easiest way to maximize the Amex Platinum’s benefits?

Start by choosing your preferred airline for the airline fee credit and booking prepaid hotels through Amex Travel to use the hotel credit. Automate the use of your Uber Cash by setting it as the payment method for Uber and Uber Eats. Leverage Amex Offers and utilize your Global Lounge Collection access when traveling.

5. Does the Amex Platinum have a spending limit?

The Amex Platinum is a charge card, not a credit card. This means there’s technically no pre-set spending limit. However, your purchasing power can vary based on factors like your payment history and creditworthiness. Amex may decline a transaction if they feel it is outside of your ability to pay.

6. How do Amex Membership Rewards points work?

Amex Membership Rewards points can be redeemed for travel, merchandise, gift cards, or statement credits. The best value is typically found through transferring points to Amex’s travel partners (airlines and hotels) for award flights and hotel stays. Redemption values vary, so compare options before redeeming.

7. What are the Centurion Lounges like?

Centurion Lounges are American Express’s signature airport lounges, offering a premium experience with complimentary food, drinks (including cocktails), Wi-Fi, and comfortable seating. They are often less crowded and offer a higher level of service than typical airport lounges.

8. Is the Amex Platinum worth it if I only travel domestically?

Even with domestic travel, the Amex Platinum can be worthwhile. Benefits like lounge access, hotel elite status, and Uber Cash are valuable for domestic trips. However, carefully assess if these benefits, along with the other credits, can justify the annual fee based on your domestic travel frequency.

9. How does the Global Entry/TSA PreCheck credit work?

When you pay for your Global Entry or TSA PreCheck application fee with your Amex Platinum card, you’ll receive a statement credit for the amount. This credit can be used every 4 years for Global Entry or 4.5 years for TSA PreCheck.

10. Can I get a sign-up bonus when upgrading to the Amex Platinum?

Generally, you are not eligible for a welcome bonus when upgrading an existing Amex card. Welcome bonuses are typically reserved for new cardmembers only. However, occasionally Amex may offer a targeted upgrade bonus, so check your Amex account for any available offers.

11. What credit score do I need to upgrade to the Amex Platinum?

While Amex doesn’t publish a specific credit score requirement, a good to excellent credit score is generally needed. Factors beyond your credit score, like your payment history with Amex, are also considered. If you’re already an Amex cardholder with a positive payment history, your chances of being approved for an upgrade are higher.

12. What happens to my existing Amex card when I upgrade to the Platinum?

When you upgrade, your old card account is typically closed and replaced with the Platinum card account. Any remaining balance on your old card will need to be paid off, or may be transferred to the new card. Your old card number will be deactivated, and you will receive a new card with a new number.