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American Express Cobalt Card Review: A Premium Rewards Card for Modern Spenders
What Is the American Express Cobalt Card?
The American Express Cobalt Card is a premium rewards credit card designed for Canadian residents who want to maximize their earning potential on everyday purchases. This innovative card stands out for its impressive earning rates on dining, groceries, and travel purchases, while offering comprehensive insurance coverage and flexible redemption options through the American Express Membership Rewards program.
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American Express Cobalt Card Pros & Cons
Pros:
- Earn 5X Membership Rewards points on eligible eats and drinks (restaurants, food delivery, groceries)
- 3X points on eligible streaming subscriptions
- 2X points on travel and transit (including ride shares)
- Comprehensive insurance coverage including mobile device protection
- Flexible redemption options through American Express Travel
- Monthly billing structure instead of annual fee
- Access to exclusive Amex Offers
- Transfer points to several frequent flyer and hotel partners
Cons:
- $155.88 annual fee (charged as $12.99 monthly)
- 2.5% foreign transaction fee
- Limited acceptance compared to Visa/Mastercard
- Spend caps on bonus categories
- Some stand-alone grocery stores may not accept Amex
Who Is the American Express Cobalt Card For?
The American Express Cobalt Card is ideal for:
- Urban Food Enthusiasts: If you frequently dine out, order food delivery, or shop at grocery stores, you'll benefit from the 5X points multiplier on these purchases.
- Regular Travelers: The card's 2X points on travel purchases, comprehensive travel insurance coverage, and ability to transfer points to airline and hotel partners make it valuable for travelers.
- Streaming Service Subscribers: With 3X points on eligible streaming subscriptions, it's perfect for those who heavily use digital entertainment services.
- Points Maximizers: If you enjoy optimizing reward earnings and want flexibility in how you redeem points, this card's diverse redemption options will appeal to you.
Comparing the American Express Cobalt Card With Other Credit Cards
When considering the American Express Cobalt Card, it's helpful to compare it with other popular options in the credit builder card category:
Chime Credit Builder Secured Visa® Credit Card:
- Annual fee: $0
- Security deposit: Flexible, based on the amount transferred to Credit Builder account
- Key features: No credit check to apply, reports to all three major credit bureaus
- Standout feature: No minimum security deposit required
Capital One Quicksilver Secured Cash Rewards Credit Card (rate & fees):
- Annual fee: $0
- Security deposit: Minimum $200, which becomes your credit limit
- Key features: 1.5% cash back on all purchases, automatic credit line reviews
- Standout feature: Earn rewards while building credit
Current Build Visa® Credit Card:
- Annual fee: $0
- Security deposit: Flexible, based on the amount transferred to Build account
- Key features: No credit check required, reports to all three major credit bureaus
- Standout feature: Linked to Current banking app for easy fund transfers
Each card offers unique benefits tailored to different spending habits and preferences. Consider your personal financial goals when choosing the best card for you.
Key Takeaways:
- American Express Cobalt Card excels in maximizing the earning potential of customers on everyday purchases
- Chime Credit Builder offers flexibility with no minimum deposit
- Capital One Quicksilver Secured provides cash back rewards
- Current Build integrates with banking app for convenient use
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Consider Using Kudos to Maximize Your Rewards
To get even more value from your American Express Cobalt Card, consider using Kudos, a free AI-powered browser extension. Kudos helps you:
- Automatically identify which credit card will earn you the most rewards for each purchase
- Track your rewards across multiple cards
- Discover exclusive "Flash Boost" events that can multiply your rewards up to 5X
- Find the best credit cards based on your spending patterns
Currently, Kudos is offering $20 back after your first eligible purchase — just sign-up for free with code "GET20" and make a purchase at a Boost merchant.
Our Expert Takeaway
The American Express Cobalt Card is a powerful earning tool for Canadians who spend significantly on dining, groceries, and travel. While the monthly fee structure and foreign transaction fees are considerations, the potential to earn 5X points on everyday purchases and flexible redemption options make it a compelling choice for rewards enthusiasts.
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American Express Cobalt Card FAQ
How many points can I earn with the Cobalt Card?
You can earn 5X points on eligible food and drinks, 3X on streaming services, 2X on travel and transit, and 1X on everything else.
What is the welcome bonus?
New Cobalt cardmembers can earn up to 50,000 Membership Rewards points in their first year.
Can I transfer points to airline partners?
Yes, you can transfer MR points to several frequent flyer programs including Air Canada Aeroplan and British Airways Executive Club.
What insurance coverage is included?
The card includes travel insurance, mobile device protection, purchase protection, and extended warranty coverage.
How does the monthly fee work?
Instead of an annual fee, you're charged $12.99 monthly, totaling $155.88 per year.
Are there spending caps on bonus categories?
Yes, the 5X earning rate has a $30,000 annual spend cap. After reaching the cap, purchases earn 1X points.
Can I use the Cobalt Card internationally?
Yes, but there's a 2.5% foreign transaction fee on purchases made in non-Canadian currency.
How do I redeem Membership Rewards points?
Points can be redeemed through American Express Travel, transferred to hotel and airline partners, or used for statement credits and other rewards.
Supercharge Your Credit Cards
Experience smarter spending with Kudos and unlock more from your credit cards. Earn $20.00 when you sign up for Kudos with "GET20" and make an eligible Kudos Boost purchase.
Editorial Disclosure: Opinions expressed here are those of Kudos alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
