The American Express Platinum Card® recently upped its annual fee to $895, making it one of the most expensive luxury credit cards on the market. With the new fee came a plethora of new credits and boosted existing benefits. However, for many cardholders, the new fee could be difficult to justify. See Rates & Fees
When to Downgrade Your American Express Platinum Card®
The Annual Fee Is Too High
Americans are cutting back on discretionary spending now more than ever due to a shaky economy. And annual fees on credit cards could be one of the first expenses to go.
Plus, if you’re a not-so-frequent flyer or if your traveling has recently slowed, it may be difficult to justify the new cost of the AmEx Platinum. Especially if you’re unable to take full advantage of travel perks like lounge access and hotel status.
Credits Will Go Unused
The AmEx Platinum offers 12 different annual credits — ranging from Saks Fifth Avenue to Walmart — worth up to $2,784. At face value, these credits alone could justify the $895 annual fee. But it’s worth noting that enrollment is required for most of these credits, and you will not be able to use all 12 every year.
For example, you’re given a $200 Oura Ring credit every year for a smart ring that tracks your body’s health and wellness metrics. But enrollment is required to use this credit, and Oura memberships cost $69.99/year or $5.99/month. And, since you only really need one ring, you use your credit once and you’re done. It remains unused every year after (unless you buy rings for friends and family).
You Want More of an Everyday Card
The American Express® Gold Card and American Express® Green Card are more everyday cards than the Platinum Card. Both the Gold Card and the Green Card offer rewards at restaurants and on travel purchases, and the Gold Card earns rewards at U.S. supermarkets, as well.
The only downside is you will get fewer travel perks. But if you only travel a handful of times a year and can live without airport lounge access, either could be a good alternative.
[Read: Travel Credit Cards]
| Card | American Express Platinum Card® | American Express® Gold Card | American Express® Green Card |
| Annual Fee | $895 | $325 See Rates & Fees | $150 |
| Rewards Rate |
— Five points per dollar spent on flights booked directly with airlines or through American Express Travel® (on up to $500,000 in purchases per calendar year) — Five points per dollar spent on prepaid hotels booked on AmExTravel® — One point per dollar spent on all other purchases |
— Four points per dollar spent at restaurants worldwide (on up to $50,000 in purchases per calendar year) — Four points per dollar spent at U.S. supermarkets (on up to $25,000 in purchases per calendar year) — Three points per dollar spent on flights booked directly with airlines or on AmExTravel® — Two points per dollar spent on prepaid hotels and other eligible travel purchases booked through AmExTravel® — One point per dollar spent on all other purchases |
— Three points per dollar spent on travel, including airfare, hotels, cruises, tours, car rentals, campgrounds, vacation rentals, travel purchases on third-party travel websites and travel purchases on AmExTravel® — Three points per dollar spent on transit including trains, taxicabs, ride-hailing services, ferries, tolls, parking, buses and subways — Three points per dollar spent on dining at restaurants worldwide, including takeout and delivery in the U.S. — One point per dollar spent on all other purchases |
| Airport Lounge Access | Yes | No | No |
| TSA PreCheck®, Global Entry or CLEAR® Plus Credit | Yes | No | No |
| Resy Credit | Yes (Enrollent required) | Yes (Enrollent required) | No |
How to Downgrade Your American Express Platinum Card
Thankfully, the process is fairly simple. Call the number on the back of your card to speak directly to a customer service representative. You’ll most likely have to explain your reason for requesting a downgrade. If you mention the annual fee is too high, you may be given a retention offer.
Retention offers can and will differ depending on the situation (and possibly even the representative you speak to). So if you hear an offer you don’t like and want to try and snag a different one, hang up and call again.
If you move forward with the downgrade, you’ll be able to choose between the American Express Gold Card or the American Express Green Card. If you downgrade during the 30-day grace period after your annual fee is charged, your annual fee will be refunded to you in full. If you downgrade after your 30-day grace period, you’ll receive a prorated refund.
At the end of the day, it’s about making your credit card work for you, not the other way around.
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How to Downgrade Your American Express Platinum Card® originally appeared on usnews.com
