The bottom line: If groceries and gas are significant parts of your budget and you refuse to pay an annual fee, this card is a fine choice. American Express isn't accepted at as many merchants as Visa or Mastercard. Alternate Pick: Higher reward rates. Terms apply. But the argument to make it your only rewards credit card breaks down when comparing it with its big brother and the best of its cash-back competition.
That leaves it mostly as a decent gas and groceries card for lighter spenders and those who refuse to pay an annual fee to boost rewards.
Terms Apply. It essentially means getting a discount on all the food, paper goods, personal care products and other items you buy regularly at the grocery store. So consider not only how much you spend on groceries but also where you most often buy them. The average U.
The nice part is that those double rewards aren't capped. However, restrictions apply here, too:. Higher gas rewards are available only at traditional stand-alone gas stations. Discount retailers such as Target and Wal-Mart are excluded, and your regional department store chain might not count.
American Express maintains a list of qualifying stores. But it comes at a price. An easy comparison is to look at supermarket spending only.
Instead, a flat-rate card that pays rewards on all spending might be a better fit. No spending categories to remember. With these cards, the amount of spending eligible for bonus rewards is capped; click through to their pages for details. American Express cards are not as widely accepted by U. You might have to carry a backup card with broader acceptance. The card is not ideal to use abroad because acceptance internationally lags Visa and Mastercard, and it charges a 2. Some cards charge no foreign transaction fee. Before you decide, check out flat-rate and quarterly category cash back cards , which might match your spending better and pay slightly higher dividends.
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