American Express just rolled out the red carpet for the all-new AmEx Blue Sky Preferred, and they’re giving away $100 to boot.
We wrote a while back about the Amex Blue cards (of which there are 4), and we admired the Amex Blue Sky at the time due mainly to its simplicity. With that card, users earn 1 point per $1 spent and can then exchange 7,500 points for a $100 credit against travel expenses on their statements, for a constant 1.33% redemption value. No blackout dates, no restrictions, no airline miles or loyalty programs – it works for any hotel, on any airline, and for any car rental.
But now Amex has sweetened the pot with the Blue Sky Preferred. Users of this new card can earn the same 1 point per $1 spent and claim the same redemption options, but they also get 2 points for every $1 spent on dining, hotels, and car rentals, bumping the reward rate slightly higher than 1.33% (depending on how much you travel or eat out). Plus they’re offering $100 as an upfront signing bonus (in the form of 7,500 points), and an ongoing annual bonus of a $100 airline allowance credit. The credit can be used to pay for baggage check fees, inflight wifi, and onboard food and beverages (though of course you have to buy the relevant plane tickets through Amex).
The card carries a $75 annual fee, but for serious travelers this will be more than mitigated by the $100 credit.
How does this stack up vs the Discover Escape?
The keen credit card nerds among us have probably noticed by now that this deal is quite similar to the Discover Escape, which pays 2 points per $1 spent, with those points redeemable against travel expenses at a higher 2% reward rate. The Escape also offers a pretty juicy signing promotion, and a lower annual fee, but doesn’t have an ongoing $100 bonus like the Blue Sky Preferred. So which is better?
It depends on how you use the card. Since the Blue Sky continues to pay out $100 in bonuses each year, it will clearly win if you only use it for hotels and dining. The 2 points per $1 will earn you 2.66%, and you beat out Discover’s signing promo. But if you use it for all of your expenses, that reward rate will drop closer to 1.33% and you’re probably better off with Discover. It only takes $10,000 of spending each year for Discover’s 2% to beat out Amex’s $100 plus 1.33%. So you’ll have to plug some numbers into our credit card reward calculator to really get to the bottom of it.
Here’s how the contenders stack up
Amex Blue Sky Preferred Click for more info |
Discover Escape Click for more info |
|---|---|
| Annual fee: | |
| $75 | $60, waived the first year |
| Signing promo: | |
| 7500 bonus points for spending $500 in first 60 days | 25000 bonus miles – 1,000 extra miles a month for first 25 months. |
| Details: | |
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