Suffice to say, it’s been a busy spring and summer when it comes to major credit card changes.
BMO updated their CashBack and Air Miles World Elite Mastercards.
MBNA Rewards Mastercards just got overhauled.
And Amex has been busy too – with white hot offers, a subtle (but impactful) change to the cash value with Membership Rewards cards, and giving this writer many reasons to keep the Platinum Card for year 2.
And now (not that it needed it), the #1 overall credit card in Canada got a huge refresh on August 16, 2021.
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Big changes to the American Express Cobalt Card
Yes, the
With all of the changes that have happened to other major credit cards around it, the Cobalt has remained our top ranked credit card. Here’s what changed, which ensured its continued dominance.
Bigger welcome bonus
One of the most exciting changes was the increased welcome bonus.
Before, you could earn 30,000 points in your first year…
But now you can earn up to 50,000 points – which is worth up to $1,000 when transferred to Aeroplan (er, spoiler alert: you can transfer to Aeroplan now).
Earning rewards on purchases
There’s a new category for earning rewards on purchases.
Before the update, here’s what you used to earn:
- 5 points per $1 spent on groceries and restaurants,
- 2 points per $1 spent on gas, transit, and travel, and
- 1 point per $1 spent on all other purchases.
And on August 16, a new category was introduced. You now earn 3 points per $1 spent on select streaming services.
Here are a few providers that will be eligible:
- Apple TV+,
- Apple Music,
- Crave,
- Disney+,
- Netflix,
- SiriusXM Canada, and
- Spotify.
It won’t be a ton of extra points, but it’s definitely something extra to add to your points bank.
Mobile device insurance
A new insurance coverage was introduced – mobile device insurance.
You’ll get coverage for that expensive piece of tech you take everywhere. And as we demonstrated, you can get some major savings in case your phone breaks beyond repair.
Though this is a rare coverage right now, the Cobalt Card is joining the growing list of credit cards that offer it.
New redemption options
And now for one of the best changes.
Before the update, there was one Membership Rewards redemption option that wasn’t available to the Cobalt Card – airline transfers.
But that changed too. You’ll be able to transfer points earned from the Cobalt Card to participating airline partners, which includes Aeroplan.
So that means the rewards with this card are potentially worth even more than before.
Before, the max value you could get from one point was 1.75 cents through the Fixed Points Travel Program. And based on a typical $2,000 monthly spend, you earned 51,600 points per year.
That translates into $903 in annual rewards, or a return of 3.76%.
But with the Aeroplan transfer option, where each point is worth 2 cents each, the annual rewards are increased to $1,080, or a return of 4.5%.
It’s a stunning overall return for a credit card.
A new monthly fee
There is one slight negative – it can’t all be sunshine and rainbows, after all.
The monthly fee has slightly increased – from $10 per month to $12.99 (why it can’t be a round $13, we’ll never know).
In annual terms, it went from $120 to $155.88.
So that’s not great. But in terms of what you’re getting back, that $3 extra per month is more than offset by the increased rewards and benefits.
All-in-all, there’s really nothing to quibble with this refresh.
It will ensure it retains its grip as the best overall credit card, and will most likely be our best Aeroplan credit card as well (not that it needs to win any more rewards than it already does).
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Your turn
It’s exciting news, and there’s nothing to argue with what Amex has done (except the slight annual fee increase).
To summarize, the Cobalt card got:
- a bigger welcome bonus (up to 50,000 points),
- a new bonus category (3 points per $1 on streaming services),
- a new insurance coverage (mobile device insurance),
- a new redemption option (transfer to airline partners), and
- a new monthly fee ($12.99 instead of $10).
What are your thoughts on what Amex has done here?
Let us know in the comments below.
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