Was the AmEx Platinum Card Annual Fee Worth It?
Last year we decided to reenter the world of premium credit cards, and after a semi-careful analysis we felt that the American Express Platinum offered the best suite of benefits for our lifestyle. We didn’t take the decision to apply for it lightly because the annual fee is fairly steep -- $695 for the primary user (Hanna), plus $175 for an additional authorized user (me). That meant we had to at least exceed $870 in “value” to break even.
Did we get there? I think so. Your mileage may vary, depending on how you value certain amenities. We’ve tried to be as transparent as possible. When valuing the benefits, we only included things that we otherwise would have purchased – so, for example, the card comes with a twice-a-year $50 credit at Saks. If we wouldn’t have otherwise purchased something there, we wouldn’t have counted it, but since Hanna already buys make up there, it was a net positive. Similarly, when it comes to airport lounges, even if the meal and drinks we got otherwise would have cost a hundred bucks, if we weren’t hungry, or would have likely spent less without the lounge option, I’m only going to count what we would have spent – whether that’s zero, $20, or some other figure.
Non-Lounge Benefits Used
The card comes with a $20/month “digital entertainment credit” which can be applied to various streaming services, SiriusXM or the New York Times. Since Hanna and I already had SiriusXM, we applied it there. Savings: $240.
As we’ve described before, we have been members of CLEAR for several years, and always intended to continue that membership for purposes of airport convenience and timeliness. The AmEx Platinum provides a $189 annual credit, of which we availed ourselves. Savings: $189.
We don’t use Uber often, but the card provides a $15 monthly Uber rebate (which can also be used for Uber Eats), plus a bonus $20 in December. We were able to cover $105 of Uber expenses over 12 months in that way. Savings: $105.
As noted above, in each six month period Hanna redeemed the $50 in Saks Fifth Avenue statement credits. Savings: $100.
We elected to designate American Airlines as the qualifying airline for the (up to $200) credit for incidentals like luggage charges and inflight drinks and snacks. Even though we generally buy our AA tickets with a co-branded credit card that provides one free bag per passenger domestically, that doesn’t apply to international flights. We typically pay $30 per bag to go to/from Mazatlan. Fortunately/unfortunately, depending on how you see it, Hanna’s upgraded status on AA resulted in us not having to pay for bags on several occasions. Had we known this was going to happen, we probably would have designated Delta, and would have saved an additional $60. Savings: $60.
The card also provides offers with local merchants and restaurants. We took advantage of a “15 off 50” offer at Matchbox, a restaurant we enjoy. Savings: $15.
Benefits We Didn’t Use or Didn’t Meaningfully Use
The card offers what amounts to a free Walmart+ membership. We signed up, used it once, and never used it again. You may find value in it, but with Amazon Prime we really had no need.
There’s a $200 hotel credit, but only on prepaid stays at “Fine Hotels + Resorts” or “The Hotel Collection” bookings made through America Express Travel. The few times we needed to make standalone hotel reservations, there were no appropriate options to benefit from this.
$300 Equinox Credit. We use a different gym.
Lounge Benefits
As noted above, I tried to estimate the value of lounge visits as a replacement for what we would have otherwise spent without such opportunities. Below is a chart showing what I approximated the value to be. In some cases, the visit replaced a full-fledged meal. In other cases, I would’ve just gotten a soft drink, beer, coffee and/or snack, so even though I chowed down I didn’t view it as a true savings. There is some intangible value in the clean restrooms, quality wi-fi, and comfortable seating, but I’m not willing let any of those contribute to my ultimate decision.
Savings: $478.
Notes on Lounges
When we first got the card in 2022, we were entitled to bring guests into the Centurion Lounges, and we took advantage of that to treat our friends to breakfast in Dallas. That cost is reflected in the review, above. However, starting in February of 2023, the guest privileges only applied if you charged over $75,000 on the card in the previous year. We did not meet that threshold, nor do we expect to do so in the near future.
We’ve heard (and seen online) numerous complaints about overcrowding and long waits to get into the Centurion Lounges. While they have generally been full, we’ve always been able to find seating and have never waited to get food for more than 5 minutes or so. The longest we’ve waited to get into a Centurion Lounge is about 15 minutes. For the Turkish Air Lounge, we once waited nearly half an hour.
The DCA Centurion Lounge was planned to be completed in late 2022, but at the time of this writing it is still not finished. Since we fly in/out of there approximately 50 percent of the time, that would’ve provided some additional value, and may in the future (if it ever opens)
Forget the Mileage, But Don’t Forget the Mileage
This card came with a sign-up bonus of 125,000 AmEx Membership Rewards points that came after we spent $6,000 on the card in the first six months. We easily reached that amount. The points can be transferred to a number of other loyalty programs and while we haven’t used them yet, I’m sure that we eventually will. Because this is a non-recurring benefit (i.e., we won’t get it again next year or in any subsequent year), I’m not counting it in this calculus. Yes, it matters. Yes, it has value, but by itself this benefit would not have convinced us to get the card. We could have accrued miles elsewhere in other ways. In order for this card to be worth it for us, it’s the other recurring benefits that need to provide the oomph. The total estimated value of the sign-up bonus is a nont-substantial $1000+, but for most of us that should not be the driver of whether the AmEx Platinum is “worth it.”
Total Savings: $1187
Notes on the Card Itself
Earlier this spring, Hanna’s card was compromised. The company handled it efficiently and we had a new card in hand a day later. That’s comparable to our experience with other companies.
Remember, when making a decision about which card or cards to get, not everyone takes AmEx, particularly abroad.
I’ve read online rumors that American Express will increase the annual rate for the Platinum Card in the future. While it seems to have been a wise acquisition for our lifestyle, that may change depending on if it happens and how high it rises.
Remember, even if you’re inclined to get a travel-related card for your own use, there are quite a few out there. Some other option may be best for you. Be sure to read the fine print.
I still refuse to call it a “Platty.”
