New American Express Cobalt Card Dropping Now

Written by creditcardGenius Team

updated on Mar 10, 2021

Fact Checked

Please note this news post is out of date. You can find current offers here.

If you’ve been surfing around any personal finance forums these last few days…

..then, you may have already heard the exciting news.

What’s the news, you ask?

American Express has a brand new card hitting the shelves today.

Here’s the details straight from Amex.

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The American Express Cobalt Card

American Express says that this is the card that “rewards you for being you”, in these areas:

Eats & Drinks
Travel & Transit
Entertainment

My, oh my.

And boy, have they delivered!

Rumor Has It

For days the rumors of this card have been floating around, and now we finally have the exciting details.

This new American Express Cobalt Card is definitely a contender for one of the better cards on the Canadian market.

High earn rates in 4 categories, an intriguing welcome bonus (more below), an annual fee that isn’t paid in one lump sum, and rewards that can be redeemed for virtually any purchase.

The Details

Here are the facts straight from American Express…

Eats & Drinks

The American Express Cobalt Card allows you to earn 5x the membership rewards on food. Not just groceries, but dining as well.

Everyone has to eat, right? So whether most of your meals come from your oven or a takeout container, this card has you covered.

Travel & Transit

The new Cobalt card is also gives you 2x the membership rewards whenever you use your card for travel or transit. Use your card for your Metro pass, your Uber rides, and even your yearly get away…

This card will have you racking up the rewards in no time.

Annual Fee

With an annual fee sitting at $120, this card sits somewhere between the American Express Gold and The Platinum Card.

However, Amex wants to try and make the $120 seem a bit more manageable. Instead of charging you $120 every year, they will be charging cardholders $10 a month. (That softens the blow of a $120 fee and the fact that the first year will not be free for this card.)

Welcome Bonus

In a similar manner, the American Express Cobalt will also be spreading its welcome bonus out over 12 months.

In fact, for the first year, each month that you spend $500, you’ll earn 2,500 membership rewards.

Insurance

The new Cobalt card comes with a pretty decent insurance package as well:

Emergency Medical
Travel Accident
Car Rental Theft and Damage
Lost or Stolen Baggage
Hotel/Motel Burglary
Flight Delay
Baggage Delay
Extended Warranty
Purchase Protection

And while it doesn’t quite stack up to the Gold Rewards (or other credit cards with a $120 annual fee) it gives travelers enough to feel peace of mind while they shop and travel.

The Downside

Unlike the Gold and Platinum versions of this card, the Cobalt card won’t allow you to transfer your rewards to airline partners. For many people this is a major disappointment.

However, that doesn’t make the Cobalt’s reward points any less valuable. Especially when you look at the Fixed Points Travel Program that is available through American Express. On long haul flights from Canada to the US, book through this program, you are looking at a 1.75% return on your regular spending.

If you look at grocery and restaurant purchases, then you’re getting an 8.75% return on spending when redeeming for flights using the Fixed Points Travel Program. No other card in Canada offers a return on spending that high.

Plus, this card will allow you to redeem your rewards in pretty flexible ways. In fact, you will be able to use your mobile app to use your rewards points to pay for virtually anything – a trip, your monthly streaming service, a new outfit, even your groceries. Amex has also teamed up with Amazon and TicketMaster allowing you to use your points directly on their sites… That’s pretty convenient if you shop those sites often.

When The Wait Is Actually Worth It

With all the rumors and speculation going around for weeks, it was hard not to get caught up in the excitement.

One forum user said they felt like a kid, waiting for Christmas morning and…we agree.

Annnd finally, with the official launch of the American Express Cobalt, we get to find out what’s been waiting for us under the tree. With one of the highest earn rates, a great bonus rewards program, and an annual fee that’s a little easier to swallow…

It seems the gift under the tree isn’t just a pair of socks.

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Editorial Disclaimer: The content here reflects the author's opinion alone. No bank, credit card issuer, rewards program, or other entity has reviewed, approved, or endorsed this content. For complete and updated product information please visit the product issuer's website. Our credit card scores and rankings are based on our Rating Methodology that takes into account 126+ features for each of 227 Canadian credit cards.

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Comments

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Showing 21 comments

dwight

December 5, 2017

agree with stephen...have a backup card....i often shop at costco and shoppers for small purchases and use the rogers mastercard (nominal annual fee of $29, but actually free since I'm a Fido customer) then use my AMEX where the points are multiplied .that said, cobalt is really only for those who drink/eat out often. i use AMEX (now cobalt, used to use the scotiabank amex gold) at timmies, mcdonalds, uber, etc...it adds up. when i do eat out other than quick service and drink, those places always take AMEX, with the exception of the few asian bars/restaurants...there, again, i juse use my rogers card.

Kevin

October 11, 2017

Any recommendations on minimum credit score before I consider applying for the Cobalt w/ 50K+ salary? I know the AMEX charge cards tend to be easier to be accepted for

creditcardGenius Team

October 13, 2017

We have heard of people getting approved with a credit score as low as 620. High 600 and up would probably be safe, but sadly, there is no "magic number".

Rooters

September 30, 2017

Have I missed out on something? May I ask, does amazon and World elite MC have some sort of connection? What does MBNA refer to?

Stephen Weyman

October 3, 2017

Amazon issued a Visa credit card for a few years here in Canada. They are no longer taking new applicants. MBNA is a bank that is owned by Toronto Dominion Bank that solely issues credit cards in Canada.

David

September 27, 2017

If I were to maximize the bonus points for the first year ie 40K, could you tell me the dollar value of this when used with Amazon? Thank you.

Stephen Weyman

September 27, 2017

You will get a 0.7 cent point value if you make a purchase on Amazon.ca just using the card. If you hook the card up directly to your Amazon account, I have not yet received confirmation if that changes the value of your points. That could make it go up to 1 cent, we're not sure yet. At the 0.7 cent value, the bonus is worth $280. At a 1 cent value it's worth $400.

Tom

September 26, 2017

Not sure why all the hype on AMEX since it is not accepted in many places. I switch to MBNA Elite with 2% cash back which is now accepted at Costco which is a bonus. Even after the first year the fee applies still makes this card a winner for me.

Stephen Weyman

September 27, 2017

The MBNA Rewards World Elite is definitely a winner Tom. This card has higher rewards potential though if you shop at enough stores that accept Amex. EDIT: This card received a recent devaluation. More info here: https://creditcardgenius.ca/blog/mbna-rewards-changes/

Tech guy in bc

September 26, 2017

Big drawback for me - AMEX not accepted at Costco, not accepted at Superstore, a number of restaurants and a few other places I shop.

Julie Lee

September 26, 2017

For me personally, Amex is not accepted at some of the major grocery retailers such as Costco, Real Canadian Superstore, T&T ... my major grocery purchases for only two people in this household. I do, however, shop for my meat at a retailer who accepts Amex @ approximately a couple hundreds/ month so is it worthwhile to switch as there is also the $120 fee. Though my present Mastercard also charges $120, the fact that I can use it everyone is a real plus so ... besides, I just switched to this Mastercard and cancelling this card which I recently received may affect my credit rating?

Stephen Weyman

September 27, 2017

It may not make sense for you to switch if there are no groceries stores nearby that take Amex that you are also willing to shop at and you don't order food out very much. A good strategy is to combine a top no fee Mastercard or Visa with a top Amex card like this one with an annual fee. That way whenever Amex isn't accepted, you just pay with your backup. Having multiple cards is also useful in case one of your cards gets lost, stolen, or deactivated for fraud suspicion. If you are responsible with your credit and your current Mastercard isn't your only credit product (do you have other loans, mortgages, bills, etc?), then cancelling one and applying for another won't have a long lasting impact to your score.

sceptic

September 30, 2017

I don't understand all the hype and Stephen's push for this card either. The Amex cards have really fallen off the wagon. That is, unless you never cook at home that 5 points reward will never materialize as none large grocery stores that I know of (Loblaws, Costco, Coops, Sobeys/Safeway) accept Amex ... The point redemption rates are overblown. You have to read fine print - The Fixed Points Travel Program covers only "base price" while "taxes, fees or carrier surcharges" are still on you to pay. These ones quite often amount to 25-50% of the purchase price. The short haul is only for adjusting states/provinces - i.e. covers flight from Ontario to New York, or Alberta to BC. Such tickets cost 15,000 in points + all taxes fees. You can buy those tickets for around $150-$250 all in, so redemption rate is almost 1:1. The long haul, it will be hard to have 40,000 to be worth $700 (remember, you still have to pay all taxes and fees), but even then it is only 1.75% redemption rate (and don't forget annual $120 fees that will eat into this 40,000 points)... I also don't understand why I have to combine a no fee MC with this Amex. There are better MC out there than this Amex and I can go by with only one card that is accepted everywhere. My backup is cash or debit. If anything, get MC and Visa, forget Amex. I also don't understand big concern regarding credit score...who cares about that??? Just live within your means. I'll pass ...

Stephen Weyman

October 3, 2017

For sure, points redemption rates are considering you maximize your redemption. If that's not possible for you, then you're going to get closer to that 5% return on spending on gas and restaurants instead of 8.75%. This is no different (actually better) than Aeroplan though where you have difficult availability + taxes and fees to deal with. Flying coast to coast in Canada will get you a $700+ ticket before taxes and fees so you get the full $700 value. Agree with you about grocery stores being a challenge. Many people report Sobeys/Safeway and other Sobeys owned grocery chains as accepting Amex as is the case where I live. Not sure if it is different where you are from. Costco wouldn't give 5x anyway unfortunately because it isn't a "grocery store". Unfortunately, no credit card treats it as a grocery store when it comes to spending bonuses. There are no 5x Mastercards out there that I'm aware of but, as you say, you can get a good return on spending with just one Mastercard - less hassle for sure.

Tom PRYDE

September 26, 2017

Considering our family uses Costco, Loblaws type stores and Walmart where AMEX is not accepted it's marginal at best. AMEX in my experience never does anything for the consumer. Plus you are still paying fees for the card.

Marpy

September 30, 2017

I tried calling their insurance number before using an AMEX card for a car rental just to ask a few questions and see what their service was like and ended up on "Perpetual Hold". I put the phone on speaker and carried on with what ever else I was doing. After about 40 minutes I hang up. Not Very Impressed To Say The Least!! They promise but do not deliver!!! and all their regular customer service can do is put you through to the "Perpetual Hold Number"!!!! on another note - Cheapest car rental site I found was Costco!! over 10% cheaper than Kayak, rental company sites and the others I checked as well. Also different locations for the same car rental company will have different prices with the airport location being by far the most expensive. i saved $80 by walking 1 kilometer to pick up the car as opposed to picking it up at the location beside the hotel I was staying at. :-)

Stephen Weyman

October 3, 2017

Yes, credit card insurance is outsourced to regular insurance companies typically. Sounds like they had a glitch in their automated phone system. I've been on perpetual hold with several companies over the years. It's way more common than it should be. Very frustrating. Hopefully they have it fixed by now. How long ago was this?

Stephen Weyman

September 27, 2017

I'd like to know what you mean by "Amex never does anything for the consumer". In my experience as a customer, they've always had some of the best customer service, are quick with dealing with fraud problems, and provide cards with high value rewards, perks, and benefits. Acceptance is the biggest issue which does drag down their ratings. The other benefits just overpower that drawback. My recommendation is to have a top Amex with an annual fee you use as your primary card to maximize your rewards, and then a secondary no fee Mastercard or Visa you use as a backup when American Express isn't accepted.

sam

September 26, 2017

for some reason annual fees turn me right off.... I CAN'T DO IT STEPHEN I CAN'T DO IT!! lol

Nicole

September 27, 2017

Same here. As soon as I see a fee it's off the table

Maria Weyman

September 26, 2017

We get it, Sam! Check our best no-fee card rankings right here: No-fee cash back: https://creditcardgenius.ca/best-credit-cards/no-fee-cash-back No-fee travel: https://creditcardgenius.ca/best-credit-cards/no-fee-travel :)

^◊ The creditcardGenius algorithm, based on our Rating Methodology, calculates an estimated dollar value for all rewards and bonuses by combining typical monthly spending with well-researched reward point value estimates. "Annual Rewards" is calculated by combining our default $2,000 in monthly spending ($24,000 annually) spread across 8 different spending categories (gas, groceries, travel, etc) with our point value estimates. "Welcome Bonus" is calculated by combining all one-time bonuses available to new cardholders within the first year with our point value estimates. To qualify for the full bonus you may need to make purchases, meet minimum spending requirements, or complete special actions. "Annual Interest Savings" is based on a credit card balance of $8,000 and a standard credit card interest rate of 19.99%. Annual Rewards, Welcome Bonus, and Annual Interest Savings values will change if the person adjusts their monthly spending away from the $2,000 monthly default or changes their reward preferences.

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New American Express Cobalt Card Dropping Now

The American Express Cobalt Card

Rumor Has It