American Express Cobalt Card Review

If you’re seeking a credit card in Canada that accumulates points swiftly, the American Express Cobalt is a top contender. It features remarkable earning rates across various categories. When paired with the exceptional flexibility of the American Express Membership Rewards program, it creates an ideal combination for reward seekers.

While some may find that American Express is not widely accepted at every retail location, the actual acceptance rate is likely higher than you might think. In most of the places I frequent, there are only a few merchants where American Express is not accepted. Check out my review of the American Express Cobalt to discover why this card might be the right fit for you.

Welcome Bonus and Earn Rates

The welcome bonus for the Amex Cobalt card adopts a monthly structure. Typically, you earn 2,500 American Express Membership Rewards points each month for the first twelve months, provided you spend a minimum of $500 on eligible purchases. Thus, if you qualify for this bonus every month, you can accumulate up to 30,000 points in the first year.

Currently, however, the latest offer grants 1,250 American Express Membership Rewards points each month during the first year with a minimum spend of $750, totaling 15,000 points.

In terms of the earning structure, you will enjoy the following rates:

• 5 points for each dollar spent on dining and beverages
• 3 points for every dollar spent on streaming services
• 1 point for each dollar spent on all other transactions

Undeniably, the American Express Cobalt Card provides some of the most competitive earn rates among Canadian credit cards. However, there is a cap on top-tier earning categories set at $2,500 per month. Spending beyond this limit will yield only 1 point per dollar.

The cap may appear significant, but savvy spending can help you reach it with ease. For instance, some grocery stores sell gift cards from other retailers, allowing you to buy them to earn 5X points and use the gift cards as needed, maximizing your point accrual.

Benefits and Features

It’s important to mention that the American Express Cobalt Card has a monthly fee of $15.99. While this fee is slightly higher than many mid-tier credit cards, the Cobalt Card is designed to offer superior earning potential over extensive perks. Nevertheless, it provides several valuable features.

Travel Insurance

• Emergency Medical Coverage – up to $5,000,000 for 15 days/under 65
• Flight Delay Coverage – $500 for delays of 4 hours or more
• Baggage Delay Coverage – $500 for delays of 6 hours or more
• Lost or Stolen Baggage Coverage – $500 per incident
• Rental Car Theft/Damage Protection – $85,000 for up to 48 days
• Hotel/Motel Burglary Insurance – up to $500 per occurrence
• Travel Accident Insurance – up to $250,000

While this insurance package does not cover trip cancellations or interruptions, it does encompass essential travel protections including medical emergencies, lost baggage, flight delays, rental car theft and damage, accident coverage, and hotel burglary protection.

Mobile Device Insurance

Devices purchased using the Cobalt card are eligible for mobile device insurance of up to $1,000, covering theft, loss, or damage for a period of two years. Coverage commences on the 91st day from the purchase date to avoid overlapping with existing purchase protections.

Purchase Protection

When using this card for purchases, you benefit from both purchase protection and buyer’s assurance. Your items are safeguarded against theft, loss, and damage for 90 days, while buyer’s assurance extends the manufacturer’s warranty by an additional year.

Exclusive American Express Experiences

As a holder of the American Express Cobalt Card, you gain access to a range of exclusive experiences offered by American Express.

• Front Of The Line Presales – Gain early entry to highly sought-after concerts, dining, sporting events, and more.
• Reserved Tickets – Enjoy access to reserved seating at numerous major events.
• American Express Offers – Cardholders can avail special discounts at select merchants, available through the app or online account.
• The Hotel Collection – When booking two consecutive nights at participating properties via American Express Travel, you can receive up to $100 in hotel credits and a room upgrade when available.

How to Utilize Your Points

If you’re intrigued by the American Express Cobalt review thus far, you’ll be keen to understand the points system. American Express Membership Rewards (MR) is widely regarded as a leading travel loyalty program.

The standard redemption option is valued at 1,000 points for a $10 travel or statement credit. Points can also be redeemed for flights through the American Express Fixed Points Travel program, which can be particularly advantageous. For instance, 40,000 points can secure a round-trip fare within North America (excluding Hawaii and Alaska) for a base ticket price of up to $700. When optimally utilized, your points can exceed a worth of 2 cents each, effectively doubling the standard redemption value.

Since the value for statement credits parallels booking travel via the portal, it’s often wiser to book directly where you can unearth better deals or take advantage of any status benefits you may possess.

An additional perk of the MR program is the ability to transfer points to Aeroplan and Marriott Bonvoy, with transfer ratios of 1:1 for Aeroplan and 1:1.2 for Marriott Bonvoy. Personally, I value one Aeroplan point at 2 cents, making it a worthwhile option.

Eligibility for the American Express Cobalt Card

The American Express Cobalt Card is available exclusively to residents of Canada who have reached the age of majority in their respective province or territory.

Although Canadian banks, including American Express, do not specify required credit scores for approval, it’s generally expected that applicants should have at least a “good” credit rating.

Regarding income qualifications, American Express doesn’t outline specific income prerequisites for any of its cards. I’m aware of students with minimal income who have successfully obtained this card.

Comparative Analysis of the American Express Cobalt Card

While the American Express Cobalt Card is frequently singled out as an ideal card for everyday purchases in Canada, prospective applicants should compare it against other options.

American Express Cobalt Card vs. Scotiabank Gold American Express Card

The Scotiabank Gold American Express Card is a common comparison point due to its earning structure, offering 5 points per dollar on groceries, dining, and entertainment, and 3 points on gas, public transit, rideshare services, and eligible streaming purchases. However, Scene+ points, associated with this card, are less rewarding than American Express Membership Rewards, which ranks among the best Canadian bank travel rewards programs.

American Express Cobalt Card vs. American Express Platinum Card

Another frequent comparison is between the Cobalt Card and the American Express Platinum Card. Although both cards serve different purposes, the Platinum Card delivers extensive travel benefits, including airport lounge access, hotel upgrade statuses, an annual $200 travel credit, a NEXUS rebate, and perks at Pearson International Airport. For those seeking travel rewards, the Platinum Card is ideal; however, for points accumulation, the Cobalt Card stands out.

American Express Cobalt Card vs. American Express Business Card

For those in pursuit of a business version of the Cobalt Card, you might be disappointed. Nevertheless, American Express Canada provides the American Express Business Edge Card, featuring high points multipliers (though slightly less than the Cobalt) in select categories. It ranks among the top business credit cards in Canada, offering the highest earning rates on eligible dining and drinks within the business card space.

Conclusion

In summary, my assessment of the American Express Cobalt Card is favorable. It aligns well with individuals in the following scenarios:

• Rapid Reward Accumulation – It boasts the highest points earning rate in Canada.
• Consistent Monthly Expenditures – With a welcome bonus structured around monthly spending, accumulating points becomes easier.
• Travel Enthusiasts – Membership Rewards points are versatile and can be transferred to Aeroplan and Marriott Bonvoy, making this one of Canada’s premier travel credit cards.

No surprise, the Amex Cobalt Card is among my recommendations for the best American Express credit cards in Canada. I often suggest it to others. Feel free to reach out to me for a referral link.