Charge cards were originally introduced as an alternative to using cash - the primary form of payment at the time. They offered consumers convenience and the ability to defer payment for up to 30 days, but without any interest charges. Charge cards were a hit, and in 1959 American Express launched the first plastic card version. Seven years later, in 1966 American Express launched the Gold Card. Today, charge cards such as the American Express Gold Rewards Card offer features and benefits not available with standard credit cards.
The 2012 American Express Gold Rewards Card
The American Express® Gold Rewards Card Features
The current bonus offer for new applicants is: 15,000 Bonus Membership Rewards points when you spend $500 or more in the first 3 months. Depending on how you redeem your rewards, the bonus is good for $75 to $100 in reward cards or discounts. You can earn points on all your purchases:
- Earn double points for every $1 in eligible travel purchases charged to the Card, including flights, hotels, car rentals, cruises, and more
- Earn double points for every $1 in eligible gas, grocery and drugstore purchases charged to the Card
- You’ll also earn one point for every $1 in Card purchases everywhere else
There is a $150 annual fee, but the first year is free. Many will balk at the annual fee (remember we said this card isn't for everybody) but there are some great features wrapped up in the GRC not available in other cards. For example:
Shopping benefits - The Buyers Assurance Protection plan automatically doubles the manufactures original warranty up to one additional year. This is great for electronic and appliance purchases. Of if you're clumsy, there's also the Purchase Protection® Plan which insures your eligible purchases against accidental physical damage and theft.
Entertainment Access - With their Front of the Line service, you can get access to some of the most popular events across Canada. Concerts, performances, premieres, and special events.
Wait...what's a "charge card"?
There is one main difference between a charge card and a credit card. Credit cards offer the ability to pay over time, but not so with charge cards. Charge cards must be paid in full (and on time) every month. For this reason, a charge card isn't for everybody. If you are used to carrying balances from month-to-month, then it's probably better to use a credit card.
What are the requirements for approval?
This card requires that you have good to excellent credit in order to qualify. Your personal income plus your spouse/partner annual income (if applicable) must be $30,000 or more. You must be a Canadian resident and age of majority in your province or territory.
What about insurance coverage?
There's a laundry list of insurance coverages for travelers available with the Gold Rewards Card. Here's a few, but check the application for the full list:
Emergency Medical Insurance provides coverage for eligible emergency medical expenses incurred while traveling outside your Canadian province or territory of residence (note this is only for people under the age of 65). Complimentary Car Rental Theft and Damage Insurance allows you to save money when traveling. Get up to $500,000 Travel Accident Insurance including accidental death and dismemberment. Insurance covers you, your spouse and dependent children under the age of 23 when any of you travel on a common carrier.
Terms and conditions apply, so be sure to read the fine print so you know what exactly what's covered, when and for how much.
The Bottom Line
The American Express Gold Rewards Card offers access to a wide variety of services not available with "standard" credit cards. The 15,000 bonus points offer and point earning potential is generous and we like the added shopping protection services. We think this card is best suited for the power spender who keeps close tabs on his or her spending and who is also looking at maximizing their reward points by using the card for everyday purchases.
