American Express Gold Card Review: Dining Rewards Royalty

The annual credits are potentially valuable

The American Express® Gold Card comes with over $400 in annual benefits that can effectively cancel out the card’s $325 annual fee, provided that you use them. That could potentially make this card much more valuable than other dining cards that offer similarly rich ongoing rewards. Keep in mind that this might require some extra effort on your part, given the restrictions on these goodies. Here’s how these benefits work:

• $120 annual dining credit. You’ll get $120 (doled out in monthly $10 credits) on your account that can be applied toward purchases made with select partners: Grubhub, Five Guys, The Cheesecake Factory, Goldbelly, and Wine.com. Credits will be applied within two to four weeks of your purchase posting to your account. These monthly credits don’t roll over from month to month; if you don’t use them, you’ll lose them. Terms apply.

• Up to $120 a year in Uber Cash. Add your card to your Uber account, and each month you'll automatically get $10 in Uber Cash for U.S. Uber Eats orders or Uber rides in the U.S. These monthly allotments of Uber Cash don’t roll over from month to month; if you don’t use them, you’ll lose them. Terms apply.

• Up to $100 Resy credit. Get up to $100 in annual statement credits ($50 semi-annually) after enrolling your card and making eligible purchases at U.S. restaurants on the Resy app or on Resy.com. These monthly credits don’t roll over from month to month; if you don’t use them, you’ll lose them. Terms apply.

• Up to $84 Dunkin' credit. Earn up to $84 ($7 per month) in statement credits after enrolling your card and paying at any U.S.-based Dunkin' location. These monthly credits don’t roll over from month to month; if you don’t use them, you’ll lose them. Terms apply.

For someone who uses Uber and visits The Cheesecake Factory at least once a month, maximizing these credits is easier than rolling off a log. But if you wouldn’t normally spend money this way, the credits might not be as valuable as they seem.

Points are transferable

For foodies and travelers, the American Express® Gold Card offers a rich spread of ongoing rewards, including 4 points per dollar spent at restaurants up to $50,000 in eligible purchases per year, 4 points per dollar spent at U.S. supermarkets on up to $25,000 in purchases per year, and 3 points per dollar spent for flights booked directly with airlines or with American Express Travel. Terms apply. What really makes these points worthwhile, though, is the potential to transfer them to travel partners.

You can transfer Membership Rewards points to several other loyalty programs, including frequent flyer programs from British Airways, Virgin Atlantic and Emirates. A caveat, though: When transferring to U.S. airlines, you'll also have to pay a fee of $0.0006 per point, with a maximum fee of $99. You're better off avoiding those fees when possible.

To be sure, the Membership Rewards program offers plenty of other redemption options. But compared with transferring points, they generally aren’t as lucrative. If you’re craving flexibility or don’t travel frequently, you might be better off with another card.

There's a solid welcome offer

The American Express® Gold Card’s welcome offer isn’t exactly a showstopper; the real value of this card lies in its ongoing rewards and benefits. But for those looking to rack up Membership Rewards points, it gives the card’s overall value a solid boost. The current offer is as follows: Earn 60,000 Membership Rewards® Points after you spend $6,000 on eligible purchases on your new Card in your first 6 months of Card Membership. Plus, receive 20% back in statement credits on eligible purchases made at restaurants worldwide within the first 6 months of Card Membership, up to $100 back. Limited time offer. Offer ends 11/6/24. Terms Apply. Assuming you can get 1 cent out of each point, it's potentially enough to cover the cost of your next flight.

The annual fee is steep

For folks who maximize the American Express® Gold Card’s annual credits and spend plenty in the card's bonus categories, the card is worth every penny, even at $325. But for those who can’t, a card with comparable rewards — but without the annual fee — is a smarter choice. That’s why you might want to consider the Capital One SavorOne Cash Rewards Credit Card.

This card offers an excellent 3% cash back on dining, entertainment, popular streaming services and at grocery stores (excluding superstores like Walmart and Target), plus 1% on all other purchases. Because it offers cash back, rather than points, the rewards are more flexible and easier to redeem. Like the American Express® Gold Card, it doesn’t charge foreign transaction fees. It also comes with a solid welcome bonus, 8% cash back on purchases through Capital One Entertainment and 5% cash back on hotels and rental cards booked through Capital One Travel (terms apply).

The benefits are complicated

For every rich benefit the American Express® Gold Card offers, a parade of small, annoying caveats seems to follow. You get a $120 annual dining credit! But it’s just in $10 monthly increments and can be used only on select purchases. You can transfer points! But with some airlines, you'll have to pay a fee to do so. You get 4 points per dollar spent at restaurants and U.S. supermarkets! But there’s an annual spending cap. Terms apply.

If you don’t have time for that kind of tedium, a flat-rate cash-back card could be a much better fit for you. Consider the Citi Double Cash® Card, for example. It offers an impressive 2% cash back — 1% back when you make purchases, and an additional 1% back when you pay them off. It also has an annual fee of $0. The downside: It charges foreign transaction fees on purchases made abroad. But if this isn’t a deal-breaker for you, it could be an excellent choice.