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American Express credit card review: Rewards

THE centenarian has always been hard to beat when it comes to rewards and the American Express Reward credit card is no exception.

Like most other retail reward credit cards you can get more points by shopping in certain places, unlike most other retail reward credit cards those certain places are almost everywhere.

You'll get 3 points for every £1 you send in major UK supermarkets, 2 points for every £1 spent in a department store and a point for every pound spent anywhere else. 5,000 points will get you a £25 shopping voucher, which means that you'll need 200 points to get £1 back.

In the first three months of owning your American Express Reward credit card you can also get 6,000 bonus points when you spend £500. That's 18,000 potential points, then, or £90 in vouchers.

This bonus - and the fact that there's a 0% interest rate on purchases for the first six months - make the American Express Reward credit card particularly well suited if you've got a period of high spending coming up.

Finally, as an American Express credit card holder you'll have access to all the benefits of being with one of the world's biggest brands: there's extra protection on your purchases far over and above that offered under law, 24/7 customer service and travel accident insurance when you use the credit card to buy travel tickets.

The trade off is the fairly high 17.9% typical APR interest rate and the fact that you'll need a good credit score and have a household income of over £30,000 to apply.

However, if you're eligible the American Express Reward credit card has one of the most rewarding credit card schemes we've ever seen and is certainly the best and most accessible reward scheme on the market.

Interest Rates and Fees
		Notes..
Typical APR	17.9% APR (variable)	The typical APR is the rate most people are offered.
Introductory Purchases	0% for 6 months	Promotional purchases will be repaid first.
Balance Transfers	n/a	-
Balance Transfer Fee	None	-
Cash Withdrawal Rate	27.9% p.a. (variable)
Cash Withdrawal Fee	3% (£3 minimum)
Annual Fee	None	A dormancy fee of £20 will be charged each year if the total amount of purchase transactions is not more than £0 (Note: Cash withdrawals and balance transfers are not counted).
Foreign Transaction Fee	2.99%	This fee will be charged if you make a purchase or cash withdrawal in a foreign currency.

Rewards
		Notes..
Reward #1	Express Rewards	Earn Express Rewards at a rate of: - 1 point for every £1 spent on purchases - 2 points for every £1 spent at department stores - 3 points for every £1 spent at UK supermarkets. Point limitations and exclusions: - Petrol stations and franchise stores are excluded from the 'supermarket' definition - 3 points for every £1 at UK supermarkets will be awarded on spend up to £500 in any month - additional spending in the same month will continue to earn 1 point for every £1 spent. Points will be forfeited if: - You do not keep your account in good standing (if you exceed your credit limit or miss payments) - You earn less than 5,000 points in the 12 months prior to the anniversary of your account opening. - You close the account before the end of a 12-month period. Other exclusions and limitations apply. Redeem Express Rewards points for: - 5,000 points for a £25 gift voucher for a range of select UK stores. - Points must be redeemed in increments of 5,000. - Gift vouchers are available for: - Marks & Spencers - iTunes - Amazon.co.uk - hmv - Waterstone's - Molton Brown London - Boots - House of Fraser - Comet - Net-A-Porter.com - Harrods - Tiffany & Co
Reward #2	Bonus Express Rewards	Earn 18,000 bonus points when you spend £500 a month in the first 3 months of account opening. It may take up to 1 month for points to be applied to your account.

Cardholder Services & Extras
Online Account Management		You can log in to the American Express web site and manage your American Express Platinum Cashback credit card account online. - Optional Paperless Statements - SMS & E-mail Alerts: Register for "Card Alerts" and choose to recieve updates by SMS text message to your mobile phone or e-mail relating to your American Express Platinum Cashback credit card account. Notification information includes: - Account balance - Confirmation of payments - Advance notification of nearing your credit limit - Advance notification of due payments - Notification of missed payments.
Fraud Guarantee		You will not be held responsible for any unauthorised charges.
Fraud Monitoring		Secure System American Express will monitor your account for any suspicious transactions and notify you as soon as possible to check if it's fraudulent or not.
Identity Protection
Purchase Protection Insurance		Up to £2,500 per claim Purchases made with this card will be protection against theft or accidental damage for 90 days after the purchase date. - Up to £20,000 in any 365 day period. - £50 excess applies. - Please note exclusions and limitations apply.
Purchase Delivery Insurance		Mail order items are not excluded from the 'Purchase Protection Insurance' policy.
Purchase In-Transit Insurance		As part of the 'Purchase Protection Insurance' policy.
Refund Protection Insurance		Up to £200 per item, up to £750 per year Purchases of brand new items, costing between £25 and £200, will be covered in the event that you return an unused eligible item to the retailer, within 90 days of purchase and the retailer will not refund you. - Items must be paid for entirely with the American Express Platinum Cashback credit card. - Please note exclusions apply.
Comprehensive Travel Insurance
Travel Accident Insurance		Up to £150,000 Travel accident insurance covers you against serious injury and death when you buy your travel tickets with this card. It is not an adequate substitute for a comprehensive travel insurance policy.
Travel Inconvenience Insurance
Assistance Abroad		Global Assist Emergency medical and legal help when travelling abroad.
Emergency Card Replacement		If your card is ever lost, damaged or stolen, American Express will get an emergency replacement card to you almost anywhere in the world. Emergency cash advances are also available.
Other Extras	- Free additional card. - 24 hour customer service. - Chip & PIN.
Optional Extras	These are extras that you can choose, but you will have to pay for them. - Repayment protection.

Payments & Payment Details
		Notes..
Credit Limit	£1000 minimum	Maximum credit limit is subject to status.
Interest Free Period	Up to 56 days	For purchases if you pay your balance in full and on time. There is no interest free period on balance transfers or cash advances.
Minimum Monthly Payment	10% (£50 minimum)	The minimum monthly payment will be the greater of: - 10% of the outstanding balance, OR - £50.
Allocation of Payments	Interest » Insurance Premiums » Fees & Charges » Promotional Purchases & Balance Transfers » Purchases » Cash Advances	You have to clear outstanding statement transactions in this order. This means you have to repay all interest, fees and charges *before* you can repay any promotional purchases or balance transfers, and then you must clear these *before* you can repay any standard purchases, which must be cleared before you can repay any cash withdrawals.
Default Charges	£12	This is how much you will be charged for late payments, returned payments and if you go over your credit limit.
Copy of Statement Fee	£2	This is the fee you will be charged for duplicate statements.

Card Details
		Notes..
Online Application	Yes: Instant Decision	Online applications get a decision in 60 seconds. Remember: always ensure you meet the application requirements before applying, as getting rejected can affect your credit score.
Card Type	Classic	You will need to satisfy the approval criteria (see online application) and have a good credit rating to qualify for this card.
Payment Company	American Express	The company who provides the payment technology and infrastructure to allow you to use this credit card. Retailers and ATM machines displaying the 'American Express' logo will accept this credit card.
Card Issuer	American Express	The bank who issues this credit card. American Express Services Europe Limited Portland House Stag Place London SW1E 5BZ
Card Advertiser	American Express	The company who advertises and promotes this credit card.

Review Continued...

Get more and pay less when you spend with the American Express Reward credit card.

Rewards wherever you shop

The major appeal of this Reward credit card from American Express is that you'll be able to pick up at least 1 reward point for every £1 wherever you shop.

Only purchases will get points, cash transactions (including cash back at the till) won't earn you anything. Extra points can be picked up at department stores (double points) and supermarkets (triple points), although confusingly American Express have only specified that these need to be 'major' stores.

The extra point offers don't include money spent at petrol stations or franchise stores.

Unfortunately, there are both minimum and maximum restrictions on the number of reward points you can pick up.

You will need to accumulate at least 5,000 points in each 12 month period after opening your account - if you don't any points you have earned will be forfeited.

There's also a limit on how many points you can bag at supermarkets. You'll only be awarded the extra 2 points (3 in total) on supermarket spending up to £500 in any calendar month (that's 1000 extra points, or 1500 points in total) - any spending over this will be awarded with just the standard 1 point per £1 spent.

To make sure you don't lose out at the end of the year, you'll need to be spending at least £417 a month on ordinary purchases or around £139 a month just in supermarkets.

If you spend £500 in the first three months of opening your American Express Reward credit card, you'll also get 6,000 bonus points, or £30 in shopping vouchers.

The vouchers can be redeemed at many big name retailers including Amazon.co.uk, Waterstones, Comet and Marks & Spencer.

Finally, if you want to make sure that you collect as many points as possible you'll be pleased to hear that it's free to add a supplementary cardholder.

0% on Purchases

The American Express Reward credit card offers a 0% rate on purchases for the first six months, which could help to spread the cost of any large purchases.

However, it's vital to remember that no-interest isn't the same as no-repayments. You'll need to be making at least the minimum repayment every month to qualify for this offer and to keep collecting your rewards.

As with the reward points, it's important to know which transactions count as purchases. Cash transactions, including getting cash out an ATM and cash back at the till, won't get the 0% rate and neither will any gambling transactions.

It's also important to note that transactions which are not counted as purchases will be subject to a higher interest rate, without an interest-free period.

For example, cash withdrawals are charged at a rate of 27.9% p.a from the moment you use the cashpoint with a 3% fee at a minimum of £3.

Since the American Express Reward credit card applies payments to the lowest rate first, you would have to pay your whole purchases balance before making a dent in any amount that you've spent on cash transactions.

This could lead to a huge interest bill and is yet another good reason for avoiding these kind of transactions with an American Express Reward credit card or, indeed, most credit cards.

Cardholder Benefits

This being American Express there are a wealth of cardholder benefits available. The credit card may still be a struggle to get accepted in smaller stores but in return for the occasional annoyance, they do take care of you.

There's 24 hour customer service assistance and extra protection on your purchases, over and above that offered by law under section 75.

This includes purchase protection - money back when items you buy with the card are damaged or stolen - and refund protection - money back when you want a refund for a legitimate reason but the retailer is refusing you - up to 90 days after the purchase date.

To apply for the American Express Reward credit card you'll need to be aged 18 or over, have a permanent UK home address, a current UK bank or building society account and a household income of over £30,000 (your income plus your partner's income).

You'll also need to have a good credit history, with no CCJs on your record.

All in All

All in all, the American Express Reward credit card is a great way to get something back without breaking the bank.

Apply Online for American Express Rewards credit card »