Good morning, friends. Thanksgiving is right around the corner and we all have some serious thinking to do... Thinking about what the heck we're going to get our friends and family for holiday gifts, of course.
So today I thought I'd share a little secret with you... a credit card that pays for itself and can earn you tons of points on your upcoming spending 👇
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💳 The best keeper card on the market
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By now you’ve heard me throw around the term “keeper card” a few times, referring to cards that make sense to hold onto year after year because the value you get will always outweigh the annual fee.
It doesn't matter which airlines or hotels you like, how much you spend, or anything else. A $700 hotel card makes sense for a very specific type of traveler, but a keeper card like the one I'm about to share with you makes sense for pretty much everyone.
Since Black Friday is fast approaching and we all have some serious spending to do in the near future, I’m going to tell you about a certain keeper card that stands out from the rest of the pack. I’m talking, of course, about the American Express® Gold Card.
You can think of this card as the younger, more handsome brother of the famous American Express® Platinum card. Thankfully, it also comes with a “little brother-sized” annual fee of $250†.
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Terms apply to American Express benefits and offers.
Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more.
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But before we jump into the nitty-gritty of fees, credits, and value, let’s talk about the points you earn from spending your cold, hard cash.
One of the biggest categories of spending for anyone is food, i.e. your morning coffee(s), groceries, drinks with friends, or the tiny $5 sandwich you paid $30 for on UberEats while sitting at home binge-watching Sex and the City… no? Is that just me?
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Anyway, we all eat, and we all spend a decent amount of our money on food-related things. That’s exactly why the Gold Card is so awesome. You can earn 4X Membership Rewards® points per dollar spent at restaurants, including takeout and delivery in the U.S., and at U.S. supermarkets (on up to $25,000 in purchases per calendar year, then it drops to 1 point per dollar) - more than any other card we recommend on dailydrop.com.
Because of this multiplier, you can rack up tons of points every month and then redeem them for travel just from eating food. It’s basically a dream come true.
If you’re reading this newsletter, you probably also spend a few dollars here and there on flights. At least I hope you do.
With the Gold Card you also earn you 3 points per dollar on flights booked directly with the airline or through AmexTravel.com. While there are other cards out there that earn more than this, none of those other cards have the same perks as the Gold Card.
That brings me to my favorite thing about this card - the credits. And let me tell you, this card doesn’t mess around when it comes to credits.
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After you enroll, you get up to $120 worth of annual dining credits, in the form of $10 per month statement credits when you make the purchase with your Gold Card at participating partners.
If you're new to statement credits, here is basically what this means:
- Enroll in the benefit online, through the American Express® App, or by calling the number on the back of your card
- Spend $10 in a given month at a participating partner on your Gold Card
- "Participating partners" are specific brand establishments, but the list is long enough that it would be difficult to not find a use for this.
- Receive a statement credit (i.e. a reduction in your Gold account balance), typically 6-8 weeks after your purchase
Second, you get up to another $120 of credits in the form of Uber Cash, also broken up into $10 per month after you add your Gold Card to your Uber account. You can also use these credits for UberEats in the U.S., making it easy to use if you aren't traveling in a big city.
So right off the bat, you’re looking at $240 of annual credits that you don’t even have to work hard to use.
Now you might be thinking to yourself “Ummmmmm Mike, you literally just told me a little while ago that the annual fee of this card is only $250. Surely that must be a mistake if the card offers a total of $240 worth of annual dining statement credits and Uber Cash….right?”
And I would respond by saying “No, Steve. You’re wrong.”
Most of you aren’t named Steve, but those of you who are named Steve probably just felt really special there for a second.
It’s true, though. Because of the $240 of annual benefits that are earned from spending money I know I would be spending anyway, the $250 annual fee doesn't feel quite the same as other $250 purchases in my bank account 😁. Remember when I said this was a keeper card? Yea, that’s why.
Every year you hold the card and mind your p's and q's (enroll in the benefit, put the right monthly spend to the right merchants on your Gold Card, etc.), you can get that level of value, no matter what.
But wait… there’s more 😮. Did I mention this card also earns points and has a welcome offer?!?!?!
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This card also currently has a Welcome offer to earn 60,000 Membership Rewards points after you spend $4,000 in purchases on the Card in the first 6 months of Card Membership (Terms apply ).
So let’s walk through what you’d need to spend per month to hit the welcome bonus, then walk through what you could do with all of the points you earn.
- $400 on U.S. supermarkets and restaurants (1,600 points)
- $100 on gas (100 points)
- $100 on internet and utilities (100 points)
- $100 on other miscellaneous things (100 points)
This is obviously a very simple and conservative budget, and I assume most of you spend quite a bit more than this. But for the sake of this example, let’s assume this is all you spend.
In a given month, you’re spending $700 on the card and earning 1,900 points.
In your first 6 months, you could earn a total of 71,400 Membership Reward points, by reaching the minimum spending requirement by spending $4,200. (60,000 from the Welcome offer and 11,400 from monthly spending).
Now for the exciting part - let's walk through some examples of how you could use those points!
Let's say you live in New York and you want to spend a lovely, relaxing week in the Spanish countryside.
First, you could transfer 30,000 Membership Rewards points to KLM/Air France Flying Blue. With those points, you could book round-trip flights between New York and Madrid.
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Next, you could take your remaining 41,400 points, transfer them to Marriott Bonvoy, and book this 7-night stay at a hotel in A Coruña, Spain. |
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To reiterate, by signing up for the Gold Card and paying the annual fee and spending $4,200 in six months (that you are likely spending already), you're earning enough Membership Rewards points to book a hypothetical (and yet very much real) round-trip airfare and 7 nights in a hotel ALL on points plus the taxes and fees for the airline ticket (no more than $150 total).
🤯 That's pretty ridiculous, especially for a card you know you're going to keep year after year and continue to rack up heaps of points with.
If you're interested in gaining a lifelong partner-in-crime in the fight to earn points, check it out 👇
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Bonus Tip: If you’re selected for an instant credit card number, you can even start shopping online immediately. Or you know, in 3 days after waiting outside in the cold for that doorbuster deal on Black Friday. And then again in 6 days from the comfort of your she-shed on Cyber Monday. No judgement from us on your holiday shopping habits 🤐. |
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Well, that's all for today! Sorry again to the international readers to who this doesn't apply, but it's a great offer that many of you could really benefit from, so it's worth sharing.
If you live outside of the U.S., you shouldn't be completely discouraged either. Many countries all around the world from Canada to the U.K. to India to Israel to Australia have amazing travel credit cards that can help you enter the travel hacking game, so spend a few minutes looking into it.
How much money do you spend on food in a given month (I promise I won't tell anyone)? Do you think you'll apply for the Amex Gold Card soon? Let me know by replying to this email or reaching out on social media.
Be careful out there on Black Friday, it's like the wild west of shopping.
Talk soon,
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