Amex upgrading Gold customers to Preferred Rewards Gold – a good deal?

Reader Kim got in touch to ask my advice on a letter she received from American Express.  She has a Gold card  – the old style one, no longer available to new customer.  This is different from the ‘Preferred Rewards Gold‘ which has been the card they have been pushing for the last couple of years.

Amex is forcibly upgrading all Gold card holders to Preferred Rewards Gold from 1 October.  Kim wanted to know if this was a good deal or not.  Frankly, I was not impressed.

Fundamentally, you should not be paying an on-going annual fee for a credit card unless the benefits are easily worth the fee.  And the Amex Preferred Rewards Gold does not deliver. 

What are you getting?  OK, 2 Membership Rewards points per £1 on travel and foreign spend is good, but only 1 on most other purchases.  2 airport lounge passes is worth taking but hardly worth a fortune, especially as you can’t use them in Heathrow Terminal 5.  And the insurance offered is not a replacement for full travel insurance and seems very similar to what is offered by other credit cards.

Let’s compare the Preferred Rewards Gold to the BMI Amex.  If Kim cancels her Gold, she will save £125 a year on fees.  The BMI Amex has no fee, offers a 20,000 mile sign-up bonus (convertible to 20,000 Avios) and pays 1.5 miles per £1.  This is 50% more than the Preferred Rewards Gold on most spending, albeit less – but not much less – on travel and foreign spend.  The Preferred Rewards Gold card does offer a 7,500 point bonus if you spend £15,000 on it per year, but this is not an easy target.

Kim could also consider the £85 fee version of the BMI Amex.  This comes with an extra 4,000 miles for signing up, and earns 2 miles per £1 on all spending, instead of 1.5 miles per £1.  If you are spending £10,000+ a year on the card then this version may be better for you.

Assuming that Kim is using her Membership Rewards points for Avios, I would recommend cancelling – although she will need to empty out her Membership Rewards balance first.  If she is using her MR points to convert to a different partner which does not have its own UK credit card (eg Singapore Airlines) then it is a different question.

Despite the comments above, I DO strongly recommend the Amex Preferred Rewards Gold to new cardholders.  There is no fee for the first year, and you get 20,000 Membership Rewards points.  But Kim is in a totally different position, with no bonus and no fee waiver.

Want to earn more points from credit cards? – December 2021 update

If you are looking to apply for a new credit or charge card, here are our November 2021 recommendations based on the current sign-up bonus. 

You can see our full directory of all UK cards which earn airline or hotel points here. Here are the top current deals:

British Airways American Express

5,000 Avios for signing up, no annual fee and an Economy 2-4-1 voucher for spending ….. Read our full review

British Airways American Express Premium Plus

25,000 Avios and the UK’s most valuable credit card perk – the 2-4-1 companion voucher Read our full review

American Express Preferred Rewards Gold

Your best beginner’s card – 20,000 points, FREE for a year & two airport lounge passes Read our full review

The Platinum Card from American Express

30,000 points and an unbeatable set of travel benefits – for a fee Read our full review

Earning miles and points from small business cards

If you are a sole trader or run a small company, you may also want to check out these offers.

American Express Business Gold

20,000 points sign-up bonus and free for a year Read our full review

American Express Business Platinum

40,000 points sign-up bonus and a long list of travel benefits Read our full review

British Airways Accelerating Business American Express

30,000 Avios sign-up bonus – plus annual bonuses of up to 30,000 Avios Read our full review

Capital On Tap Business Rewards Visa

The most generous Avios Visa or Mastercard for a limited company Read our full review

For a non-American Express option, we also recommend the Barclaycard Select Cashback card for sole traders and small businesses. It is FREE and you receive 1% cashback on your spending:

Barclaycard Select Cashback Credit Card

1% cashback and no annual fee Read our full review