One of our readers Diane Citrin posed this question : Is it worth it to have an American Express Platinum card? Is a gold just as good without paying the high fee?

Answer : It really depends on what you will use the card for? Since I started off with the Gold Card 15 years ago and upgraded to the Platinum Card about 2 years ago, I think I am in a good position to comment on this question. Let’s compare the two cards in terms of features.

Rewards – Both cards have reward programs based on the American Express Membership Rewards Program. Membership Rewards has 3 levels in their membership. The first is the Express Level, which is used for the Amex Blue Card. The middle level, which is called simply the Membership Rewards applies to the Gold Card. The top level, called the first, applies to both the American Express and Centurion Card. The difference between the Membership Rewards First and the regular Membership Rewards is that the First has more partners with high end boutiques.

Earning Points – Both cards allow you to earn 1 point for every dollar that you spend on the card. You can earn unlimited Membership Rewards points, which do not expire. One key difference (or rather benefit) of the American Express Platinum Card is that you can earn 4 points for every dollar you spend at BonusPointsMall.com versus 3 points for every dollar you spend with the Gold Card. Without the Platinum Card, you could also earn double points when you book your travel online with American Express.

BonusPointsMall.com is American Express’s aggregation mall. So rather than going say to Toyr R Us website, you can go to Toys R Us from BonusPointsMall.com and earn more points using your card than if you went straight to toysrus.com. So with the Platinum Card, you could potentially earn more points this way.

Annual Fee – The Gold Card has an annual fee of $125. The first year fee is waived. The annual fee for the Platinum Card is $450. Both are charge cards that require you to pay in full although these days, you can set aside a portion to actually carry a balance.

Similarities and Differences in Travel benefits

Both cards have coverage for loss baggage, guaranteed room reservations, 24/7 roadside assistance, 24/7 medical, legal, financial, or other emergency assistance while traveling.

The Platinum Card has these other features that the Gold Card does not have. They have a concierge and dedicated team of travel consultants to help you with your travel arrangements. Whether you use them or not depends on your personality. Some people like to hunt for the best bargains!

You also have access to private airport clubs at many airports. This is one feature that I really like. Just not too long ago, I had a flight delay at the Philadelphia International Airport. But with my Amex Platinum Card, I was able to get access to the American Airlines Lounge (which would have probably cost me $50 per person). Instead, my whole family (Mrs Credit Card plus 3 kids) had a decent place to hang out for a couple of hours.

The Amex Platinum also has arrangements which hotels where you get special amenities and services at fine hotels and resorts. As a Platinum Card member, you will be part of the Fine Hotels and Resorts Program. When you make reservations with any of the hotels in the program, you can get room upgrades and special amenities.

You also get elite status in car rental and hotel programs. For example, if you enroll in the Starwood Preferred Guest program, you will get a complimentary Gold status with a Platinum Card.

Similarities and Differences in Dining and Entertainment Benefits

Both cards have access to preferred seating and event ticket protection plan (up to $2000). They also have extended warranty plans. This is a program whereby Amex will extend the warranty on the product you bought for one additional year if the warranty is less than 5 years. Both cards also have the purchase protection plan where you can Amex will reimburse you if a merchant refuses to accept returned goods or if you break them.

The Platinum Card has several dining and entertainment features that the Gold card does not have. For example, you have access to special VIP events, and you could actually get seats in very difficult to get restaurants around the world without advanced bookings. The Platinum Card also offers personal shopping services and elite shopper programs that the gold card does not offer.

Departure Magazine

If you have the Platinum Card, you will also get 4 issues of their own “Departure Magazine” a year. The magazine is really about great travel places, great stuff to ! All designed (I guess) to make you shop more on your platinum card. You also get a nice year end summary of your expenses in a nice booklet!

So Which is Better?

It really depends. First off, let me say that they are both great cards which very good customer service (from my own experience which may differ from others). I would say that if you travel a lot, value being a gold level status with Starwood, or having elite membership with car rental companies, stay at elite hotels a lot, appreciate hotel upgrades, a chance to get tickets to great events and concerts and value being able to access airport lounges for free, then I would get the Platinum Credit Card.

If not, then the American Express® Preferred Rewards Gold Card will surface.

Having had the gold card and being a present platinum member, you would not go wrong with either.

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