If you possess a credit card, you’re amongst many. I’ve got a couple in my wallet, which isn’t unusual. According to data from the Financial Conduct Authority, around 7 in 10 UK adults have at least one credit card. And, boy, do we spend on them.
In February 2023 (the latest data available), we collectively spent more than £17 billion on our credit cards. The average transaction size was around £50.
Used wisely, a credit card can help with budgeting. If you’re buying goods online, they give you more protection than a debit card. And while the interest rate charged for spending on a credit card is higher than most other credit arrangements, you get a grace period before making payment. Clear your balance every month, and you won’t pay interest.
If you’re considering using a credit card to help with your financial management, you might be considering applying for a card from American Express (AMEX) – one of the giants in the industry – and some of the best American Express credit cards carry with them some excellent rewards.
The question is, which AMEX card should you apply for?
Debunking the AMEX myth
AMEX cards offer some tremendous benefits. Which is best for you depends on many factors.
Before I look at each AMEX card in detail, let’s tackle the elephant in the room: the myth that AMEX cards aren’t widely accepted. This is just not true. Sure, AMEX isn’t as widely accepted as Visa and Mastercard, but you can use AMEX at more than 35,000 retailers across the UK. These include:
- All the major supermarkets
- Wetherspoons and most other major pub operators
- Petrol stations
- Food delivery companies including Uber Eats, Just Eat, and Deliveroo
- Most major High Street retailers
- Amazon
- Some utility companies
- Subscription services like Netflix and Spotify
You can use an AMEX card to pay for flights, hotels, holiday bookings, public transport, and more. There aren’t many places that won’t accept AMEX. Most that don’t are small, independent outlets.
An AMEX card for all occasions
Through the 1980s and 1990s, American Express cards were considered to be something of a status symbol. If you’re of a certain age, you’ll probably remember the “That will do nicely” adverts. Since then, AMEX has worked hard to broaden its appeal. There’s now a card for everyone.
Each card comes with different benefits. Some require you to pay an annual fee, while others are free-to-own.
Which one will do nicely for you? Let’s take a look at the best American Express credit cards…
Premium Amex Credit Cards
The Platinum Card
Key information and benefits and drawbacks:
- Representative APR 462.4% variable
- 29.4% variable interest for purchases
Benefits
- You are rewarded with points for every pound spent with the platinum card which can be redeemed with shopping, travel and lifestyle partners.
- Complimentary airport lounge access to 1,400 airport lounges in 140 countries
- Worldwide comprehensive travel insurance for yourself and your family
- Up to £150 statement credits per year to spend in 1,400 UK restaurants, and also £150 to spend abroad.
- Up to £100 statement credits per year to spend in Harvey Nicholls. This is broken down as up to £50 every 6 months.
- Complimentary hotel benefits such as room upgrades and late checkouts at hotels across the world.
- Points Bonus if you meet the spending criteria within 6 months of opening the card
- Rewards for referring friends
- Interest-free period of 56 days on purchases (if you pay the full balance each month).
Drawbacks
- Annual fee of £575
- No interest-free periods on balance transfers, money transfers or cash advances
Summary:
The AMEX platinum credit card offers a good chance to build up points and claim free rewards with a range of affiliated partners. It also offers other great benefits such as comprehensive travel insurance, hotel and airport lounge upgrades and cashback offers for UK and overseas restaurants.
The annual fee of £575 might put some people off, but it could be perfect for business use, especially if doing a lot of travelling.
British Airways American Express® Premium Plus Card
Key information and benefits and drawbacks:
- Representative APR 110.1% variable
- 29.4% variable interest for purchases
Benefits
- You are rewarded with Avios points for every £1 spent. The amount you earn differs where you spend; 3x on purchases with British Airways or BA holidays, 1x on purchases and earn at least 9,000 for every friend you refer, up to 93,000 a year. 10,000 Avios points would redeem an economy flight from London to over 25 destinations
- A Companion voucher is awarded when at least £10,000 is spent during each membership year. This allows a companion with you on a flight or a 50% discount on a solo flight.
- Bonus Avios points if you meet the spending criteria within 3 months of opening the card
- Avios points can be redeemed against flights or flight upgrades.
- Travel inconvenience and accident insurance
- Interest-free period of 56 days on purchases (if you pay the full balance each month).
Drawbacks
- Annual fee of £250
- No interest-free periods on balance transfers, money transfers or cash advances
Summary:
As the name suggests, this card will suit those who fly frequently and you will be able to rack up some serious Avios points and use those to claim free or discounted flights. If you are a frequent traveller there is also the big draw of complimentary travel insurance covering inconvenience and accidents which is a big plus point to this card.
American Express® Preferred Rewards Gold Credit Card
Key information and benefits and drawbacks:
- Representative APR 73.3% variable
- 29.4% variable interest for purchases
Benefits
- Annual fee of £160 (£0 in the first year)
- You are rewarded with membership points for every £1 spent. The amount you earn differs where you spend; 3x on spend with American Express Travel, 2x points on purchases made directly with airlines, and 1x on any other purchases
- Up to 12,500 bonus points per year
- Points can be used to offset purchases on the card, or with a range of shopping, travel and lifestyle partners
- 4 complimentary Priority Pass airport lounge visits a year
- Access to unique events
- £5 cashback on eligible Deliveroo purchases
- Transfer points to travel programmes
- Points bonus if you meet the spending criteria within 3 months of opening the card
- Interest-free period of 56 days on purchases (if you pay the full balance each month).
Drawbacks
- Annual fee of £160 (£0 in the first year)
- No interest-free periods on balance transfers, money transfers or cash advances
Summary:
With a £0 annual fee for the first year, I feel it’s certainly worth testing this card out to see how you get on. It offers a great range of bonuses and incentives and if used wisely you could enjoy some excellent freebies as a result of using this card.
Amex Travel Credit Cards
The three ‘platinum’ credit cards are also excellent choices for travel credit cards because of the features listed above. However, American Express does offer another travel-related credit card, which I have provided details for below, and the best part about it is that it has no annual fee.
British Airways American Express® Credit Card
Key information and benefits and drawbacks:
- Representative APR 29.4% variable
Benefits
- No annual fee
- 1x Avios points on purchases made using the card
- 4,000 Avios points for every referred friend who is a successful applicant
- Companion voucher when at least £12,000 is spent during each membership year. This allows a companion with you on a flight or a 50% discount on a solo flight.
- Collect up to 91,000 bonus Avios points for inviting friends
- Global Assist and Travel Accident Insurance
- Points bonus if you meet the spending criteria within 3 months of opening the card
- Interest-free period of 56 days on purchases (if you pay the full balance each month).
Drawbacks
- No interest-free periods on balance transfers, money transfers or cash advances
Summary:
As a free-to-own card, this is an excellent way of using an American Express credit card to build up Avios points, although they’ll come at a slower rate than if you were using one of the platinum cards. Nevertheless, with a lower APR rate this card could be a really useful addition, especially if you want a card without an annual fee.
Amex Rewards Credit Cards
American Express categorises the American Express® Preferred Rewards Gold Credit Card and the British Airways American Express® Credit Card under their ‘rewards’ cards, however, I have already covered these in earlier sections. There is, however, another reward card which could be useful.
Marriott Bonvoy® American Express® Card
Key information and benefits and drawbacks:
- Representative APR 47.4% variable
- 29.4% variable for purchases
Benefits
- You are rewarded with points for every £1 spent. The amount you earn differs where you spend; 6x on spend at eligible Marriot properties and 2x points on purchases.
- 9,000-point bonus points for every referred friend who is a successful applicant
- Upgrade your automatic silver status to gold if you spend £15,000 a year on the card
- 15 elite credits upon sign-up and 15 each calendar year towards attaining elite status for the Marriot Bonvoy programme.
- A chance to win a free night at a participating Marriot hotel after you spend £25,000 in an anniversary year
- $100 credit for qualifying charges if a stay in either The Ritz-Carlton® or St. Regis® is booked.
- Travel Inconvenience and accident insurance
- Global Assist
Drawbacks
- Annual fee of £75
- No interest-free periods on balance transfers, money transfers or cash advances
Summary:
This card is great if you frequent Marriot hotels regularly, either for work or pleasure. There is a great opportunity to build up points quickly by using the card at eligible Marriot properties and it also comes with a minor annual fee which could easily be clawed back in hotel savings.
Amex Business credit cards
American Express offers the following credit card which falls out of the remit of personal use because it is more tailored to business use. Nevertheless, I have included it in my comprehensive round-up as it is available for the UK market.
American Express Business Gold Card
Key information and benefits and drawbacks:
Benefits
- No annual fee for the first 12 months, but £175 after
- No representative APR
- Interest-free period of 54 days on purchases
- You are rewarded with points against spend. The amount you earn is as follows: 1x points for almost every £1 spent, 10,000 extra membership reward points when you spend £20,000 per quarter on purchases, and 2x points for every £1 spent on American Express travel.
- Partner discounts at various retailers, including Amazon, British Airways, Sainsbury’s and Lidl.
Drawbacks
- No annual fee for the first 12 months, but £175 after
- For business use only
Summary:
As I stated in the introduction, this card is aimed at businesses that could meet the spend criteria to earn rewards and not have to worry about the annual fee. Partner discounts at a variety of retailers are also an excellent bonus for businesses who use these.
Amex Cashback credit cards
American Express offers two cashback credit cards which allow users of the cards to generate cashback against purchases. There is certain criteria to follow to ensure that you can generate the cashback, which I have outlined below.
Platinum Cashback Credit Card
Key information and benefits and drawbacks:
- Representative APR 35.0% variable
- 29.4% variable for purchases
Benefits
- The Platinum Cashback credit card offers great cashback options when making purchases using the card. For purchases up to £125, you can get 5% cashback, however, this is only for the first three months of owning the card, 0.75% on purchases up to £10,000, and 1.25% on purchases over £10,000. It is also a good idea to check if the purchase is being made with an eligible retailer.
- Cashback is paid as account credit at the end of the membership year
- Access to American Express travel benefits and American Express experiences.
- Travel accident insurance and global assist are also provided when you have this credit card
Drawbacks
- Annual fee of £25
- No interest free periods on balance transfers, money transfers or cash advances
Summary:
This credit card is one for people who are purchasing goods on a frequent basis and using a credit card to do so. The small annual fee will be easily clawed back in cashback savings and there is a great opportunity to amass a decent amount of statement credit at the end of your membership year just for buying the things you were already buying anyway.
Platinum Cashback Everyday Credit Card
Key information and benefits and drawbacks:
- Representative APR 29.4% variable
- 29.4% variable for purchases
Benefits
- No annual fee
- The Platinum Cashback credit card offers great cashback options when making purchases using the card. For purchases up to £100, you can get 5% cashback, however, this is only for the first three months of owning the card, 0.5% on purchases up to £10,000, and 1% on purchases over £10,000. It is also a good idea to check if the purchase is being made with an eligible retailer.
- Cashback is paid as account credit at the end of the membership year
- Rewards for inviting friends (subject to approval)
- Access to American Express travel benefits and American Express experiences
- Travel accident insurance and global assist are also provided when you have this credit card
Drawbacks
- No interest-free periods on balance transfers, money transfers or cash advances
Summary:
This card is very similar to the Platinum Cashback credit card and the stand-out advantages are the £0 annual fee and better representative APR. However, the cashback amounts are also lower.
This would be a good card to have if you’re more of an infrequent purchaser using credit cards but want to benefit from getting some cashback across the year.
No annual fee Amex cards
I have already advised that American Express offers two credit cards that don’t require you to pay an annual fee to use them, which are the Platinum Cashback Everyday Credit Card and the British Airways American Express® Credit Card – both these cards come with a range of benefits which you can read about above.
The other card that American Express offers that doesn’t require you to pay an annual fee is called the basic card which isn’t a credit card, but what is known as a charge card. This means there’s no set spending limit, but you are required to clear your balance every month. As with the other AMEX cards in this article, I have outlined all you need to know.
Amex Basic Card
Key information and benefits and drawbacks:
Benefits
- No annual fee
- 24/7 customer service
- No pre-set spending limit
- No interest charges if the full balance is paid off each month
Drawbacks
- No bonuses or reward schemes are associated with this card
Summary: Whilst this isn’t technically a credit card (because no balance is approved upon a successful application) it is still a card you can use to pay for things in advance, subject to approval.
It also acts in the same way as a credit card due to the fact that interest will be charged on purchases if the balance isn’t cleared each month. With no annual fee, it could be a great addition to your existing cards, however, care must be taken that you can afford to repay the balance each month.
Hotel & retail credit cards
Earlier in this article I shared details of the Marriott Bonvoy® American Express® Card, which gives its users a range of benefits and rewards mostly associated (as the name suggests) with Marriot properties. If you haven’t read that section already and like the sound of that card, please check out the rewards credit cards section.
Another card that is offered by American Express is called the Nectar credit card.
Nectar Credit Card
Key information and benefits and drawbacks:
- Representative APR 35.0% variable
- 29.4% variable for purchases
Benefits
- Annual fee of £25, however £0 in the first year
- You are rewarded with points for every £1 spent. The amount you earn differs where you spend; 3x on spend at Nectar partners and 2x points on purchases.
- 5,000-point bonus points for every referred friend who is a successful applicant up to 90,000 a year.
- Access to Global Assist
- Standard AMEX service such as purchase and refund protection, American Express offers and experiences.
Drawbacks
- Annual fee of £25, however £0 in the first year
- No interest-free periods on balance transfers, money transfers or cash advances
Summary:
This card is an excellent choice for those choosing to shop regularly at Nectar partner shops which will help to redeem points quickly. Considering this card has a £0 annual fee for the first year, it is a good option to choose to see if you can take advantage of the rewards scheme on offer.
The Bottom Line
If you use a credit card wisely, it can be an incredibly strong addition to your personal financial armoury. It means you have funds available for an emergency. Provided you clear the balance every month, you’ll never pay a penny in interest.
If you do have a credit card in your wallet – AMEX or other – the trick is to use it to your advantage. I use my credit cards to pay for regular expenses, racking up points or getting cash back. But I make certain I don’t spend what I cannot pay off. And as those points and cash back is rolling in, I am saving money on my future spending.
On top of this, I get extra peace-of-mind on my online spending, and a range of hidden benefits, too – like travel insurance.
I’ll ask you one last time: which AMEX card will do nicely for you?