American Express Green Card Review
This entry Amex card may not seem great at first glance, but it has several benefits. Yes, it one of the lower-entry charge cards, but it’s one first step to opening a better Amex card. There are also several upgrade options to consider as well. We’ll review the American Express Green Card today. We’ll go over the good points and the not so good points so you can make an informed decision. If you’re looking for charge cards, the Amex Green Card may be an option to consider.
American Express Green Card Benefits
Waived Annual Fee
While the American Express Green Card has an annual fee, the lender waives it for the first year. This means that you can keep all of your rewards for the first year. This is a good adjustment period so you can try out the card. You’ll know by the end of the first year if this card is a good fit for your needs or not. If you like to travel through American Express, you’ll earn rewards.
Another benefit of the Amex Green Card is the rewards rate. When you book through American Express Travel, you get two points for every dollar you spend. So, if you spend $500 on travel, you’ll get 1,000 points. You’ll also earn one credit card reward point for every other dollar you spend on everything else. This has the potential to stack up quickly, especially if you travel a lot.
American Express Green Card Rewards Never Expire
Any rewards you earn are yours until you close the account. They never expire, so you can stack them for as long as you like. This makes it very easy to save up for a larger purchase or travel expenses. So, if you have a big trip coming up in a year, don’t spend any of your rewards. You’ll be able to cover a lot of your expenses with your saved rewards. With many credit cards, unused reward points expire.
A lot of people who travel frequently enroll themselves in frequent flyer programs. If you do, the American Express Green Card can be a valuable tool. Any points you earn with this card will transfer to several frequent flyer programs. So, if you don’t travel with American Express much, you can switch your points to your preferred airline. There is a small fee to transfer your points to US airlines, but it’s only $0.0006 per point.
Several Ways to Redeem
Along with redeeming your points for travel and travel expenses, there are several other ways to redeem your points. You can use these points as a statement credit. If you have 10,000 points you want to redeem, you’ll get a $60 statement credit. You can also redeem them for hotels, vacations, cruises, Airbnb bookings, and Expedia flights or hotels. You can also redeem your points for gift cards, entertainment, and point of sale transactions like taxi services.
Membership Rewards Program
The American Express Green Card allows you to get instant access to Amex Offers. This optional program gives you several discount opportunities just for having the card. There are over 70 different merchants that participate in this program today. You can get discounts for Sling TV, glasses.com, Wine Enthusiast, Dollar Shave Club, and much more. These do change periodically, so it’s always best to double check if you’re not sure.
This is a charge card and not a credit card. What makes it unique is that it doesn’t have an APR. You’re expected to pay your bill in full each month. This is also a very good learning tool if you’re just starting to budget. You’ll learn very fast how to spend inside of your means and not get yourself into debt.
Free Two-Day Shipping
Just having this card gives you access to free two-day shipping. This also works for free returns as well. You have to go through the ShopRunner service to get this free shipping. But, you can currently use it at over 140 brands or merchants. This list is always growing and changing, so you have the potential to save big. If you have your own business and ship a lot, this is a great perk.
The American Express Green Card sometimes offers various savings opportunities on utilities. You can get up to a 10% discount by adding the offer to your card. You can search online and just click to add it. This discount works on your cable, internet, satellite TV, or cell phone bills. If you get this discount a few times, it’s easy to justify the annual fee.
This beginner American Express charge card opens the door to various opportunities. Not only will you be able to upgrade to a better card eventually, but there is also a loan program. This personal loan program requires pre-approval. You can get a loan starting at $3,500 and going up to $25,000. These loans have fixed interest rates ranging between 6.90% to 19.97%. The interest rates vary depending on your credit.
American Express Green Card Drawbacks
American Express Green Card Annual Fee
The annual fee starts during the second year you have this card. It’ll cost you $95 per year to have this card. If you don’t use it a lot, this is very hard to justify. Ideally, you’ll have to spend around $5,000 in travel rewards to break even. This will give you $100 in travel rewards to offset the annual fee.
Mediocre Rewards Rate
While the rewards rate is okay for a beginner card, it’s low compared to other cards. It averages out to a 1:1 ratio for everyday spending and a 2:1 ratio for travel expenses. This means that it’ll take longer to accrue a decent amount of rewards. You’ll have to spend a lot more to earn fewer rewards. You can stack them, but it may take a while to have enough to cash out.
No Balance Rollover
This is a charge card, not a credit card. This is a very important distinction that you want to pay attention to. There is no APR, but this card doesn’t need it. You have to pay your balance off in full each month. The lender won’t allow you to carry a balance from month to month. This can be difficult if you’re used to credit cards. You may have to modify your spending habits to fit this card.
Foreign Transaction Fee
This is a travel card with a foreign transaction fee. So, it’ll charge you 2.7% for each transaction you make through a non-US bank. So if you travel, you may want to bring a card to use while you’re abroad. You can use this charge card for booking your travel and accommodations.
Late Payment Fee
If you don’t pay your balance in full at the end of the billing cycle, you’ll pay a late payment fee. You’ll pay either $37 or 2.99% each time you’re late paying your bill. This can stack up quickly, especially if you’re habitually late. If this sounds like you, you may want to check other cards.
The lender wants to make sure that you pay your balance. If you don’t pay it, they’ll restrict your card. You won’t be able to make any additional purchases with it until you pay your balance in full. This can be a nasty shock, especially the first time it happens. You’ll also forfeit any rewards you earn during the month that you make a late payment. This can be a powerful reminder to pay in full and pay on time.
You have to earn a minimum of 5,000 points to redeem them. This can take a long time, especially if you don’t plan to travel. If you’re looking for a quick redemption option, there are better cards available. This is something to think about before you apply for this card.
American Express® Green Card – Bottom Line
The American Express Green Card is a good choice for people who travel. It’s also a solid choice for people who are learning to budget as well. The perks outweigh the drawbacks, and this is a good learning tool. It’s also an excellent way to open the door for better Amex card opportunities and upgrades. If you’re looking for a new card, try the American Express Green Card.