Or, consider other cards for 50,000 or more miles or points that transfer into United miles with additional flexibility for your everyday spending.
$750 for air / hotel / car bookings. Or transfer points to United, Southwest, Hyatt, and more.
No annual fee.
Yesterday, American Express offered an in depth presentation for investors.
There were a few nuggets of information for rewards seekers, but perhaps the most surprising is this statement:
“Our share of wallet among Platinum Cardmembers is 70% and among Gold Cardmembers is 55%.”
That means people who hold a Platinum Card put 70% of their spending on it, an astonishingly high number.
That’s despite the fact it’s a basic 1 point per dollar card.
There are no category bonuses, and no extra bonuses for spending more on the card each year, unless you have one of the special brokerage branded versions.
If you’re truly rational about rewards, you shouldn’t be putting any spending on your Platinum Card, and instead use a more rewarding Membership Rewards card like the no annual fee Amex EveryDay, which can offer 1.2 points per dollar on most spending and 2x points on groceries.
It’s possible some of them are putting their spending on another American Express card, but people who hold more than 2 rewards cards are in the distinct minority. But most of them are pulling out their Platinum Card for just about everything.
If you’re reading this, you are a value seeker, and you should thank these loyal Platinum Card holders.
While putting 70% of your spend on a Platinum Card makes little sense if you’re trying to maximize your rewards, it does make sense in another way.
The annual fee is big, and the card still carries prestige in people’s minds. A lot of cardmembers think they need to ‘earn back’ their annual fee by using the card. Some are even afraid if they stop spending they might lose it.
And the perception that the Platinum Card is exclusive makes many people more likely to pull out the card simply for the prestige factor. While best in class purchase protection and claim management is another reason cardholders tend to pull out their Platinum Cards more often.
It’s powerful, and their loyalty subsidizes the great Amex benefits for you, a more savvy reward seeker.
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