Should You Get an American Express Platinum Card if You Rarely Travel?

When it comes to credit cards, the decision to sign up for a rewards card that offers significant travel benefits, such as the American Express Platinum Card, can be complex. If you rarely travel, it’s essential to consider whether the features and associated annual membership fee are worth the investment. This article delves into the pros and cons, helping you make an informed decision based on your travel habits and financial situation.

Understanding the American Express Platinum Card

The American Express Platinum Card is renowned for its extensive travel-related perks, making it a popular choice for frequent travelers. Key features include:

No foreign transaction fees Access to elite airport lounges 200 airline fee credits per year Preferred seating on select airlines Fee credits for Global Entry or TSA Precheck

These benefits are designed to make traveling more convenient and cost-effective. However, the card comes with an annual membership fee, which is currently $395, making it a premium choice in the rewards card market.

Why You Might Consider the American Express Platinum Card

Even if you don’t travel frequently, there might be scenarios where the Platinum Card could offer value:

Business Travel: If you are often travelling for work, the card’s business-related benefits such as access to airport lounges and preferred seating could be beneficial. Some companies also offer reimbursement or gifts for signing up for a rewards card, which could offset the annual fee. Occasional Out-of-City Trips: If you travel to meet clients or attend conferences, the travel perks could justify the annual fee. Investing in Future Travel: If you plan to travel more in the future and want to start building a rewards base now, the Platinum Card could be a smart investment in your financial future.

Why You Might Not Want the American Express Platinum Card

If you rarely travel for personal or business reasons, the high annual fee might not be justified. Here are some points to consider:

No Geographic or Frequency Thresholds: Unlike some travel credit cards that only offer benefits for a certain number of qualifying transactions or trips, the Platinum Card’s benefits are always available, whether you travel or not. This feature can be appealing to some, but it also means the annual fee is always a fixed cost. Annual Membership Fee: The $395 annual fee can be prohibitive for those who do not travel enough to fully utilize the card’s benefits. Additionally, if you switch to a different card with similar benefits that offer a lower annual fee, the cost could be offset. High Credit Limit: While a high credit limit ($100,000) might seem enticing, it can also be a liability if you misuse it. Navigating the high credit limit responsibly is crucial to avoid potential credit score concerns.

Alternatives to the American Express Platinum Card

For those who rarely travel but still want access to some of the card’s benefits, there are alternative options:

American Express Blueカード: This card offers a lower annual fee ($95) and similar travel rewards, albeit on a smaller scale. It might be a better fit for those who occasionally travel for business or personal reasons. Chase Sapphire Preferred Card: While this card also offers robust travel benefits, it comes with a lower annual fee ($95) and provides flexibility in earning points that can be redeemed for travel expenses, groceries, or cash back. Blue Cash Everyday Card: This card specializes in cashback rewards in certain categories like grocery stores, gas stations, and pharmacies, which might be more useful for individuals who do not travel frequently but still prefer cashback benefits.

Conclusion

When deciding whether to get the American Express Platinum Card, consider your travel habits and whether the card’s benefits align with your needs. If you frequently travel for personal or business reasons, the Platinum Card could be a valuable asset. However, if you rarely travel, you might want to explore lower-fee alternatives that offer similar benefits on a smaller scale.

Ultimately, the decision should be based on a thorough evaluation of your travel patterns, financial situation, and the specific benefits you seek. By carefully weighing the pros and cons, you can make an informed decision that best suits your lifestyle and needs.