American Express Preferred Rewards Credit Card

Best Features of the American Express Preferred Rewards Credit Card

• 20,000 bonus Membership Rewards points for new cardholders who spend £1,000 in first 3 months
• Bonus points every year just for spending at least £15,000
• Travel and purchase protection insurance
• No pre-set spending limit

Our Review

The Preferred Rewards credit card from American Express isn’t a standard credit card because you must pay the full balance off at the end of every month or face steep fees. If you have the funds to cover your purchases, this card can be well worth the annual fee associated with it. There is a wide array of great bonuses including travel, accommodation, gifts, and coverage. If you aren’t spending at least £15,000 on the card per year though, it isn’t going to be such a good deal.

Who it’s for

This rewards card is designed for people who travel and make large purchases frequently, but also always pay their bills off in full. If this sounds like you, then you can benefit from the numerous rewards that cardholders get.

Eligibility

To be eligible for the AmEx Preferred Rewards credit card, you must be at least 18 years old, have a UK bank or building society account, be a permanent UK resident, have a minimum income of at least £20,000, have a good credit record, and (if self employed) have been working for at least a full year with accounts to prove it.

Balance Transfers

Balance transfers are not available with this card.

Purchases

There is no interest rate for purchases with the American Express Preferred Rewards credit card. Instead, you must pay off your balance in full at the end of every month and if you don’t, you will be hit with large fees. Do keep in mind that AmEx is still making interest off of your purchases – just in a different way. Many retailers have an extra surcharge for using AmEx cards so your purchases could end up costing more just because you choose this card.

You have 39 days interest-free to pay off your bill in full compared to the 56 that most credit cards offer. There is a £125 p.a. annual fee (£93 in your first year) for this card.

Rewards

The AmEx Preferred Rewards card really lives up to its name. There are numerous different types of rewards available. You accumulate points and can use them towards travel, accommodation, and a wide range of gifts.

You will earn 1 point for virtually every £1 you spend. There are double points for certain purchases, like overseas transactions and travel expenses. During your first year as a cardholder, you will get double points at most supermarkets and petrol stations. There is a bonus for new cardholders of 20,000 Membership Rewards points so long as you spend £1,000 in the first 3 months – enough to fly to Paris with British Airways! There are also regular bonuses like the 7,500 points you get for spending £15,000 in a year.

Frequent travellers will enjoy many complimentary perks that come with being an AmEx Preferred cardholder, like 2 free airport lounge visits annually. There is complimentary travel insurance coverage including up to £200 per person for inconveniences, £200 for luggage, and £250,000 for accidents.

Frequent shoppers will also enjoy some nice perks, like the 90 day refund protection up to £300 and purchase protection up to £2,500.

Cash Advances

Cash advances are available with the AmEx Preferred Rewards card, but you will not earn points on them.

Security & Fraud Protection

This card comes equipped with advanced fraud protection and security features, including 24/7 support available internationally in case you should need it.

Conclusion

If you are looking for an extensive rewards credit card that covers all the bases, then the American Express Preferred Rewards credit card delivers. Since most of the rewards are linked to travel, you should keep in mind that AmEx is not as widely accepted worldwide as Visa and MasterCard. While the AmEx surcharges are annoying, and this card does have a hefty yearly fee, it can pay itself off quickly if you make the most out of the rewards program.