The AMEX Dyad

Tommy

Just a Millennial living in the real world...

Editor’s note: Sign-up bonuses may not be valid in the future. I will try to keep this post as current as possible. Updated 10/31/21.

Alright Frankie and Star Wars fans! I named this post after that stupid Force Dyad that was mentioned in that GOD AWFUL last Star Wars movie that came out in 2019. I won’t even mention the title because it was THAT BAD… Thanks a lot Kathleen Kennedy & Disney!!!

So I’ve been in the points game for quite some time now and I have been loyal to Chase since 2018. As I’ve blogged about before, I have been using the Chase Trifecta for a while now and it has been amazing for me! But 2020 came and the whole world turned upside down with the COVID-19 Pandemic. We all know the story, but travel came to a screaming halt. If you pay attention to credit card news using someone like The Points Guy, then you probably saw that American Express (AMEX) has been killing it with their offers for customer retention and new customers during the pandemic. On the other hand, Chase was pretty meh with their offers, but they have recently stepped up their sign-up bonuses as AMEX has forced their hand. Gotta love competition!

I told myself that I wasn’t going to sign up for a new card for some time to let some hard inquiries fall off my credit report. But AMEX’s sign-up bonuses for the Platinum card and Gold card were the highest they have ever been to the public and almost seemed too good to be true for me not to sign up.

Another reason for why I wanted to try out AMEX is because my Chase Sapphire Reserve (CSR) annual fee will increase to $550 from $450 in January 2022 for the first time ever. This will raise my effective annual fee from $150 to $250 (after the $300 travel credit) so that eats into my points that I earn annually. I am hoping Chase will revamp the earnings potential of the CSR as the Chase Freedom Unlimited can currently earn more points than the CSR annually, which is kind of ridiculous for a $550 annual fee when compared to a $0 annual credit card. And a lot of CSR holders feel the same way as I do so it will be interesting to see what happens. If they don’t make a change, then I may downgrade to the Chase Sapphire Preferred credit card or a no annual fee card like the Chase Freedom Flex as I don’t think the CSR will be worth the annual fee. With sign-up bonuses at an all time high, I pulled the trigger to open up the AMEX Dyad back in April. It should be noted that you may only earn sign-up bonuses with AMEX once per lifetime so make sure to sign up when they are the highest offers.

Who should get these cards?

Let me first start off by saying and this is VERY IMPORTANT to note that the AMEX Platinum and Gold cards are Charge Cards not Credit Cards. There are very important differences!!! A charge card is a card where you have no credit limit and you must pay off your balance in full every month. If not, then you will get penalized off the WAZOO! A credit card is where you will have an established credit limit and you may revolve the balance every month meaning you may carry a balance month to month.

So who should get these charge cards? People who can pay their balances off in full every month. If you can’t pay off your balance in full every month then you shouldn’t be playing the points game. If you can pay your balances off in full every month, then these cards are best suited for people who like to have a luxurious travel experience and people who like to dine out or spend a lot of money on groceries every month. The AMEX Platinum is one of the best cards for business travelers as you can rack up a ton of points with the 5x points on flights.

Sign-up Bonuses

This link is for my referral bonus where I will receive a commission. The sign-up bonus is for 125,000 points after spending $6,000 within the first 6 months plus 10x points at restaurants worldwide and when you shop small (capped at $25,000 in combined purchases). Offer ends 12/1/21 and this is a great deal. If you don’t care about the extra points via the sign-up bonus and you want to support my blog then use the link above. I highly recommend not doing this and use the link to the right for the higher sign-up bonus. Do what is best for you! If you do decide to use the link, then thank you in advance!

Go directly to the AMEX website you might be offered a higher bonus. I’ve seen 150,000 point sign-up bonuses before. I received the 100,000 point sign-up bonus and 10x points on gas and groceries back in April 2021 so I think this is an amazing offer!

This link is for my referral bonus where I will receive a commission. The sign-up bonus is for 60,000 points after spending $4,000 within the first 6 months. Offer expires on 12/1/21. If you don’t care about the extra points via the sign-up bonus and you want to support my blog then use the link above.

You may be offered a higher sign-up bonus if you go directly to the AMEX website to see if you are eligible for a 75,000 point sign-up bonus after spending $4,000 within your first 6 months! This is what I received back in April 2021 and it’s the highest sign-up bonus ever offered by AMEX for the Gold card.

How to Earn Points?

The AMEX Platinum card earns 5x points on airlines or flights booked on AMEX travel, 5x points on prepaid hotels booked on AMEX travel, and 1x points on everything else. I don’t actually like prepaying for hotels as it locks you in, but always make sure you read the cancellation policies closely before you book to see if you can be refunded if you have to cancel. The AMEX Platinum card is amazing if you are a business traveler as you receive 5x points on airlines. I actually don’t fly enough annually to make the AMEX Platinum worthwhile for me. I still have a good amount of points saved up in other programs that I can still use to fly for free. So that is why I combine it with the AMEX Gold to create the Dyad where I really earn points.

The AMEX Gold earns 4x points at restaurants worldwide, 4x points at US supermarkets (excluding wholesale clubs and Target/Walmart Superstores) (up to $25,000 per year, then 1x point afterwards), 3x points on airlines, and 1x point on everything else. 4x points on dining and on groceries is one of the highest earning rates on the market.

The Perks

AMEX Platinum

Access to Centurion Lounges with two guests allowed for no charge. Beginning 2/1/23, AMEX will not allow Platinum members to bring in any free guests. Each guest will have to pay $50 for every visit going forward. The $50 guest fee will be waived for two guests if you spend $75,000/year on your Platinum card. The good part about this change is hopefully this will prevent overcrowding at Centurion lounges, but many Platinum cardholders with families who utilized the two free guests are very disappointed with this change.
Priority Pass Select with one guest allowed free of charge. Priority Pass restaurants/bars are not included.
$200 in Uber Cash credits to be used on Uber Eats or Uber Rides in the US. You will receive $15/month as a credit when used and then an extra $20 in December. You must add your card to the Uber app to receive the benefit.
$200 in airline incidental credits. You must select one airline and you can use it for checked bags, in-flight food/beverage, assigned seats, lounge passes, and other things. Airlines include: Alaska, American, Delta, Frontier, Hawaiian, JetBlue, Southwest, Spirit, and United.
$100 credit at Saks Fifth Ave. You will receive two $50 credits semi-annually on January 1 and July 1. This is kind of worthless as Saks Fifth is where you will pay for a $500 T-shirt, but I bought some Jack Black skin lotion online for about $60 and you can find some cheap deals to use the credits. These credits are not stackable and you must enroll on the AMEX website.
$200 hotel credit each year when booking a hotel in the Fine Hotels + Resorts or The Hotel Collection on the AMEX Travel portal.
$300 ($25/month) Equinox credit to be used for monthly Equinox All Access, Destination, or E by Equinox memberships or Equinox+.
$240 ($20/month) Digital Entertainment credit to be used for Peacock, New York Times, SiriusXM, or Audible subscriptions.
$155 credit for a Walmart+ membership for one year.
$179 credit for a Clear Membership.
Global Entry (TSA Pre-Check included) credit ($100) every 4 years or TSA Pre-Check credit ($85) every 4.5 years. I have never waited more than 15 minutes going through security using TSA Pre-Check so this is a great benefit.
Hilton Honors Gold Status & Marriott Bonvoy Gold Status.
Avis Preferred Status, Hertz Gold Plus Rewards Status, and National Emerald Club Executive membership.
AMEX Concierge: You can call the hotline to to book a last-minute dinner reservation, concert/show tickets, travel-related assistance, and other things.
Numerous Travel & Purchase Protections: Baggage Insurance, Secondary Car Rental Loss & Damage insurance (upgrade to primary for a small fee), Trip Delay Insurance, Trip Cancellation & Interruption Insurance, Extended Warranty, Purchase Protection, Return Protection, Cell Phone Insurance, and Global Assist Hotline. Here is a link to the guide to benefits.

AMEX Gold

$120 in dining credits used for Grubhub, Seamless, The Cheesecake Factory, Ruth’s Chris Steakhouses, some Shake Shacks, and Boxed. You will receive $10/month as a credit when used. Enroll through the AMEX website.
$120 in Uber Cash to be used on Uber Eats or Uber Rides in the US. You will receive $10/month as a credit when used. You must add the card to the Uber app to receive the benefit.
Numerous Travel & Purchase Protections: Baggage Insurance, Secondary Car Rental Loss & Damage insurance (upgrade to primary for a small fee), Trip Delay Insurance, Extended Warranty, Purchase Protection, and Global Assist Hotline. Here is a link to the guide to benefits.

Annual Fees & Other Terms

AMEX Platinum has a $695 annual not waived during the first year. If you fully utilize the credits each year, then you will come out $824 ahead. However, the $300 Equinox credit is very hard to use since a membership costs about $150/month and there are not many club locations in the US. There are no foreign transaction fees. Interest rates are on the higher end due to the earning potential and benefits.

AMEX Gold has a $250 annual fee not waived during the first year. Fully utilizing the credits alone will knock the effective annual fee down to $10 per year. There are no foreign transaction fees. Interest rates are on the higher end due to the earning potential and benefits.

The Uber, dining, and airline incidental credits were a huge turnoff for me initially, but I have found them very easy to use every month. I set a permanent reminder on my To-Do list to make sure I use them. This will differ for everybody.

Redeeming Points

The best way to redeem AMEX Membership Reward Points is to transfer to travel partners. You can redeem points for more than 1 cent per point by transferring them to partners. Always do the math before you transfer and make sure award space is available. Cash value / total points = cents per point. Always aim for at least 1 cent per point. The higher the better.

There are 21 total partners, 18 airlines and 3 hotel rewards programs. Here’s a link to Million Mile Secrets showing all of the transfer partners, minimum transfer amounts, and estimated transfer times. You can also book travel using points on AMEX Travel for 1 cent per point.

Poor values:

Cash out points at 0.6 cents per point as a statement credit.
Amazon purchases at 0.7 cents per point.
You may redeem gift cards at 1 cent per points or less. Each retailer’s gift cards are different values and may change over time.

Competitors & Alternatives

Chase Sapphire Reserve: 3x points on travel and dining and 1x points on everything else. Annual fee of $550 and $300 travel credit.

Citi Prestige Card: The card earns 5x points on dining and flights, 3x on hotels and cruises, and 1 point per dollar on everything else. There is the 4th night free perk where you receive a 4th night free at a hotel stay that can be used twice per year. This can be extremely valuable if you stay at higher-end or expensive hotels. Lastly, there is a $250 travel credit. The annual fee is $495.

Capital One Savor: 4% cash back on dining, entertainment, and popular streaming services. 3% cash back on groceries. 1% cash back on everything else. $95 annual fee.

Chase Freedom Unlimited: 5% cash back on travel booked on Chase Travel. 3% cash back on dining and drugstores. 1.5% cash back on everything else. No annual fee.

Bottom Line

The AMEX Dyad is a powerful combination that has a high earning potential annually for lots of people if used correctly. I have ran math for myself and I found out that I can earn about 20,000 – 30,000 more points annually over the Chase Trifecta. However there are pros & cons. The CSR has a better cash out option at 1 cent per point and you can earn 1.5 cent per point booking travel through the Chase Travel Portal. But I can earn more points using the AMEX Dyad, but I have to jump through more hoops when redeeming points and reducing the annual fees. So there are some tradeoffs.

I decided that I will actually probably keep both, the Chase Trifecta and the AMEX Dyad in 2022. In my opinion, I think Chase needs to beef up the CSR’s points earning potential to justify the $550 annual fee so we shall see if I will keep it. But I plan on downgrading my AMEX Hilton Honors Aspire credit card at my renewal date in December 2021. I would prefer not to pay $2,000+ in annual fees upfront at my anniversary years. I will get the money back eventually, but it is still a lot of money upfront and it’s not guaranteed that I will be able to fully utilized the credits.

AMEX Platinum:

Sign-Up Bonus: 10

Earning Potential: 6

Perks: 8

Overall: 8.0

AMEX Gold: