A Real Reward from American Express?

 
If you own an American Express gold card, you may find yourself in a serendipitous situation. Cannex Financial, parent company of American Express, recently announced that they would be reducing interest rates on their gold accounts, from 17.49% down to 11.99%. Additionally, they will maintain their full rewards program, with no changes. Inasmuch as the credit card industry is concerned, Cannex’s move is significant, and stands to attract many new accountholders. Many credit card companies are splashing their advertisement with seductive offers of low interest rates, and top industry pros are realizing that customers are starting to want a bit more “bang for their buck.”

For AmEx-touting consumers, the “bang” is the multi-tiered full rewards program. For an annual fee, consumers can choose between Ascent and Choices reward schemes, and earn one point per dollar spent. There is no expiry on points earned, and no cap on how many can be accumulated. For the right consumer, the gold American Express Rewards card may be the best value out there.

Any credit card rewards program, however, is a dual-edged blade. More dollars spent equal more points, but interest accumulated on high balances carried over from month to month can quickly devalue if not entirely negate any value “earned” off a rewards account. The lower interest rate can be dangerous, too – it is easy to spend more than one normally would, if the mindset is that less interest will be paid on the purchase. Also, market research indicates that many are taking advantage of lower-interest cards, and keeping balances on old higher-interest accounts. As seductive as offers like AmEx’s are, they are always most fruitful if you can pay off your balance every month. ■