Update: The refreshed Amex Gold card is now live.
Rumors are swirling about upcoming American Express Gold Card changes, and many cardholders and potential applicants wonder whether they should act now or wait.
According to Doctor of Credit, the annual fee for the Amex Gold Card is expected to increase from $250 to $325, and new perks such as Resy and Dunkin’ Donuts credits will be added.
But with no official confirmation from Amex yet, what should you do? Let’s dive into the details to help you make an informed decision.
Amex Gold Card Rumored Changes: What You Need to Know
The American Express Gold Card has been a go-to for dining enthusiasts and travelers.
However, the rumored changes could alter its value proposition significantly. Here’s what you need to know:
Annual Fee Increase: The annual fee might jump from $250 to $325, a $75 increase that represents a 30% hike. You’ll need to carefully consider whether the new benefits justify this higher cost.
New Dunkin’ Donuts Credit: A $7 monthly Dunkin’ Donuts credit could be added. Before you get excited, check the Dunkin’ Donuts locations in your area. Due to the limited Dunkin’ presence in the western United States, this credit might be less valuable.
Resy Credit Introduction: A new $50 semi-annual Resy credit might be introduced. Resy, owned by American Express, is a restaurant reservation platform. The value of this credit depends on Resy’s presence in your area and dining habits. If you’re not in a major city, you might struggle to use this credit effectively.
Cap on 4X Points for Restaurants: Currently, you earn unlimited 4X points on restaurant purchases. The rumored change would cap this at $50,000 per year. If you’re a high-spender in this category, this cap could significantly reduce your point-earning potential.
Changes to Dining Credit Partners: Your existing $10 monthly dining credit might see partner changes. Milk Bar and Shake Shack could be removed, while Five Guys might be added. The credit will likely continue to include Grubhub and other select partners. Consider how these changes align with your dining preferences.
New Card Design Option: A limited-time “white gold” card design option might be offered. While it might look sleek in your wallet, remember that aesthetics shouldn’t drive your financial decisions.
Unchanged Benefits: Your $10 monthly Uber Cash credit is expected to remain the same. This continued benefit adds value if you frequently use Uber or Uber Eats.
How These Changes Affect You
The Annual Fee Increase: The potential $75 jump in the annual fee is significant. You need to ask yourself: Will you get at least $325 worth of value from this card annually? If you’re not confident about this, the new fee structure might not work in your favor.
Dunkin’ Donuts Credit: This credit’s value depends heavily on your location and habits. If you’re a regular Dunkin’ customer, you could recoup $84 annually. However, if you’re in one of the six states without Dunkin’ locations or rarely visit, this credit becomes nearly worthless to you. Don’t fall into spending money just to use a credit.
Resy Credit: The $50 semi-annual Resy credit might seem attractive, but consider its practicality. Resy restaurants are often high-end and may not align with your usual dining habits. Your options might be limited if you’re not in a major city. Don’t let this credit push you into expensive meals you wouldn’t otherwise choose.
Capped 4X Points on Restaurants: A $50,000 annual cap on 4X points for restaurant purchases won’t be an issue for most cardholders. However, if you’re a high-spender in this category or use your card for business dining, this cap could significantly reduce your point earnings. Calculate your annual restaurant spending to understand if this affects you.
Dining Credit Partner Changes: Removing Milk Bar and Shake Shack in favor of Five Guys changes the $10 monthly dining credit dynamics. You might find less value if you frequently use this credit at the removed partners. Conversely, this could be a positive change for you if you’re a Five Guys fan.
New Card Design: While the white gold design might be appealing, remember that a card’s appearance doesn’t impact its financial value. Don’t let aesthetics sway your decision.
The new benefits add value if you frequently dine out, use Uber, and live in an area with good Dunkin ‘ and Resy coverage.
However, you might struggle to justify the higher annual fee if you prefer cooking at home, rarely use rideshare services, or live in an area with limited Dunkin’ and Resy options.
Credit card companies profit when you don’t fully utilize your benefits. American Express wins when you pay the annual fee, use their platforms like Resy, swipe their card for the interchange fees, and potentially pay interest. Be honest about how much you’ll truly use these benefits to avoid overspending or paying for perks you won’t use.
Should You Apply Now or Wait?
Applying Now:
If you decide to apply for the Gold Card before the changes take effect, you could potentially benefit in several ways:
Lower Annual Fee: You’ll lock in the current $250 annual fee for at least the first year, saving $75 compared to the rumored new fee.
New Benefits at Old Price: If the changes are implemented soon after you get the card, you might enjoy the new benefits (like the Dunkin’ and Resy credit) while still paying the lower annual fee.
Current Welcome Bonus: The current sign-up bonus of up to 90,000 points is a significant incentive. Based on the rumors, this offer might change with the new card version, potentially decreasing to as low as 60,000 points. Locking the higher bonus now could be a strategic move if you value Membership Rewards points.
However, applying now isn’t without risks:
Missed Opportunities: If American Express offers a higher welcome bonus or better benefits with the refresh, you’ll miss out on these.
Uncertain Timeline: We don’t know exactly when these changes will occur, so you might wait several months before seeing any new benefits.
Waiting to Apply:
On the other hand, waiting until after the refresh could have its advantages:
Full Information: You’ll have all the details about the new benefits and can make a fully informed decision.
Potential for Higher Welcome Bonus: Card refreshes often include increased welcome bonuses to attract new applicants.
Newer Benefits: You’ll get immediate access to any new perks or credits introduced with the refresh.
But waiting also has potential drawbacks:
Higher Annual Fee: You’ll be subject to the new, higher annual fee from the start.
Missed Value: If you would have used and valued the current benefits, you’re missing out on months of potential value by waiting.
So, What Should You Do?
Applying now could be a smart move if you’ve been considering the Gold Card for a while and the current benefits already make sense for your spending habits.
You’ll lock in the lower fee and enjoy new benefits at the old price.
However, if you’re on the fence or the current benefits don’t quite justify the fee, it might be worth waiting. The new benefits tip the scales in favor of the card, or you may decide it’s no longer the right fit for you.
Remember, there’s no guarantee these rumored changes will happen exactly as reported. American Express could surprise us with different updates or benefits.
To decide whether to apply now or wait, consider the following questions:
Do you value the current sign-up bonus and perks? If the current 90,000 points sign-up bonus and existing perks provide significant value, applying now might be the best option.
Are the rumored new perks useful to you? Evaluate whether the new Resy and Dunkin’ Donuts credits would be beneficial based on your location and spending habits. If these perks seem valuable, waiting might be advantageous.
Can you afford the higher annual fee? Consider whether the potential increase to $325 is within your budget and if the new perks justify this cost.
Are you willing to take a risk? Rumors always create uncertainty. If you prefer a guaranteed value, applying now ensures you lock in the current benefits and fees.
Reddit Community Insights
The overall sentiment on Reddit is mixed. Some users favor applying now to lock in the current lower fee and secure the existing sign-up bonus, while others prefer to wait for potentially better offers and perks with the new card version.
Many Reddit users suggest applying now to avoid the $75 annual fee increase. By securing the card at the current $250 fee, you can enjoy the first year’s benefits without the higher cost.
One user highlighted that if you apply now, your first annual fee would be $250; the next year, it would increase to $325, allowing you to save $75 for the first year.
Several users emphasize the value of the current sign-up bonus of 90,000 points, noting that it’s a substantial offer that may decrease with the new card version. One Redditor pointed out that securing the current high sign-up bonus is a significant advantage, especially since future offers might not be as generous.
Waiting for Better Offers
Some Reddit users speculate that the new card version might have a higher sign-up bonus to offset the increased annual fee.
For instance, one user mentioned that historically, Amex has sometimes introduced better bonuses alongside fee hikes to attract new applicants.
You might benefit from a more lucrative offer if you’re willing to wait.
A recurring theme in the Reddit discussions is the location-specific nature of the new credits. The Dunkin’ Donuts credit, for example, is less useful for those living in states with few or no Dunkin’ locations. One user from Arizona mentioned that there are only a few Dunkin’ locations near them, making the credit less attractive.
Reddit users also draw on historical context to provide insights.
For example, one user noted that when Amex refreshed the Business Gold Card, cardholders were given nearly four months before the new annual fee went into effect.
This historical precedent suggests that there might be a window of opportunity to apply for the Amex Gold Card before the new fee is implemented.
Another user highlighted that by law, Amex must provide at least 45 days’ notice before implementing a fee increase. This regulatory requirement means that even if the fee increase is announced, there will likely be a grace period before it takes effect, giving you time to make an informed decision.
Conclusion
The decision to apply now or wait depends on your circumstances and preferences.
If you value the current perks and want to avoid the higher fee, applying now might be the best choice.
However, holding off could be advantageous if you’re willing to take a risk and wait for better offers and new perks.