American Express vs. Chase: A Credit Card Credit Philosophy Showdown
Hey there, credit card aficionados! It's no secret that premium credit cards come with a hefty annual fee. To justify that cost, they often dangle a tempting array of credits. But are all credits created equal? Today, we're diving deep into the contrasting approaches of American Express and Chase when it comes to these perks.
The American Express Philosophy: Ease of Use is Key
Recently, the CEO of American Express has stated that the company is actively working to make it easier for cardholders to extract value from their card's credits. This philosophy seems to be taking shape in how their cards are structured. Let's take a look at some examples from the Platinum Card:
$200 Airline Fee Credit: On the surface, this seems restrictive. You have to select one qualifying airline and use the credit for incidental fees like baggage or lounge access. But here's the thing: there are well-publicized workarounds. For example, you can use this credit to fund your United Airlines Travel Bank, essentially getting $200 to use toward any cash flight. By paying cash, you earn even more United miles. It is a win-win situation! And the great thing is that for years, these credits have remained open for card holders to exploit them, and AMEX has not fixed them, signifying that they don't mind if people exploit these credits.
$200 Hotel Credit: When you use your American Express Platinum card on a prepaid hotel booking through either the fine hotels and resorts credit or the hotel collection credit, you can get a discount! The hotel collection requires you to stay at least 2 nights, so that you can use their benefits. This is great because you end up getting benefits in addition to the credit such as early check-in, room upgrades, and free breakfast. You can double dip!
$199 Clear Plus Credit: You get a statement when you use the Clear Plus credit. While not everyone is a fan, those who value expedited airport security can find value in this.
$240 Digital Entertainment Credit: This is a pretty easy win. You get $20 in statement credits each month after you pay for eligible purchases with the platinum card at participating partners such as Disney Plus, a Disney Plus bundle, ESPN Plus, Hulu, the New York Times, Peacock, and the Wall Street Journal. And chances are, you're already paying for at least one of these services!
Uber Cash: The Platinum card provides $200 in Uber Cash, divided into monthly increments, which you can use for rides or Uber Eats. This is as easy as ordering a meal each month.
The Chase Approach: Lock-In and Loyalty
In contrast, Chase seems to favor a strategy of keeping you within their ecosystem. They want you using their services, which, of course, benefits them. Here's how that plays out with the Sapphire Reserve:
$500 Annually for Prepaid Bookings Made With the Edit: You get up to $500 annually for prepaid bookings made with the Edit, which is a handpicked collection of hotels and resorts. The big problem is that the collection is significantly smaller than the fine hotels and resorts, so not only are they significantly smaller, but they are much more expensive.
$300 Travel Credit: The one shining beacon of the saf of the Sapphire Reserve is this $300 travel credit. It is completely wide open and you can use your travel credit on anything travel related!
Dining Credit: You get $300 annually in statement credits when you dine with the chess Chase Sapphire Reserve exclusive tables. The problem is there's only a handful of them in every single city, and you have to live in a big city in order to get a handful.
$400 Total Value With Door Dash: You get the uh, door that you get the Dash Pass for free, but then you also get $300 annually in monthly Door Dash promos. You get $5 each month to spend on restaurant orders and then two $10 promos each month to save on groceries, retail orders, and more.
The Bottom Line: Which Strategy Wins?
Both American Express and Chase offer valuable credits on their premium cards. However, their underlying philosophies differ significantly.
American Express: Focuses on providing credits that are relatively easy to use, even if it means allowing some flexibility in how they're redeemed.
Chase: Emphasizes loyalty to its ecosystem, offering credits that often require you to use specific Chase services or partners.
Ultimately, the "better" approach depends on your preferences. Do you want maximum flexibility and minimal effort, or are you willing to jump through a few hoops to stay within a specific ecosystem?
What are your thoughts? Do you prefer the AMEX approach of ease of automation, or do you like what Chase is going with? What card credits are most important to you? Share your experiences in the comments below!