The Platinum Card is its own product; in fact, the name "Platinum Card" is a registered trademark of AMEX. There is a personal version and a business version. I'll be focusing on the personal Platinum Card. (I did have the business version at one time, but I couldn't justify owning both, so I reaped all the benefits to make it worthwhile for the year that I had it)
At the time of this writing, the card's annual fee is $450. Ouch...$450?!? Why pay so much when there are credit cards with no annual fee? Other reward cards have annual fees of less than $100. So why would I be willing to fork over 4x? Truth is, I'm not paying a dime. I'm currently making a profit by holding the Platinum Card. Do you want to know how? It's all about utilizing the benefits to their full potential. I'm not even using every one of them and I'm ahead. Note that it is because of my lifestyle and traveling that this card is profitable for me, as my normal purchasing habits activate a lot of the benefits. If you don't travel very much, it's almost not worth applying. All right, enough talk, how do I profit off the Platinum Card?
40,000 POINT SIGN-UP BONUS
The current bonus for becoming a new Platinum Card holder is 40,000 Membership Rewards points after spending $3000 (not including annual fee!) within the first three months of account opening. You can redeem the points towards any charges on your card like cash, but the redemption value is better if you used it on other rewards, like gift cards (GCs) or miles/points into your favorite airline or hotel rewards program. For example, today there is a 20% off special on Home Depot GCs - normally 50,000 points gives you a $500 GC but you can get it for 40,000. Gee, that's the sign-up bonus! You've covered your annual fee and then some if you were already planning on purchasing something at Home Depot. You can also transfer the points into a hotel or airline awards program and redeem them for airfare or hotel stays. I'm not going to go into these details as there are plenty of blogs that talk about getting the most value out of your points, including smart ways to meet a $3000 spend in three months if you don't normally spend that much.
$450 - $500 = $50 profit!
See, you've already turned a profit in the above example. But critics will argue, you only get the sign-up bonus once-in-a-lifetime (a recent AMEX rule). How do you continue holding the Platinum Card for "free" in subsequent years?
$200 AIRLINE FEE CREDIT PER CALENDAR YEAR
Travel several times a year and have to pay luggage fees? Paying to upgrade to a more comfortable seat? Ticket change fees? Buy-on-board meals and snacks? Getting a one-day pass for the airline lounge? Once you designate a specific airline on your account, when you pay fees to that airline with your Platinum Card, you will receive credits on your statement, totaling up to $200 per calendar year. You can change the airline each calendar year. What if you are an elite member of an airline program and don't normally pay baggage fees and get free upgrades? Or you fly Southwest that has no lounges and not many fees? You can try purchasing gift cards from the airline; sometimes these transactions qualify for the $200 credit. Rules always change so I check the airline and AMEX forums on FlyerTalk to learn the latest on what qualifies for the credit. This year, I signed up for Southwest and got a credit for purchasing $200 GCs. (example Flyertalk thread here) I fly Southwest several times a year, so this is money I would have spent anyway and the GCs don't expire.
Assuming we are starting over from scratch and ignoring profit from sign-up bonus: $450 - $200 = $250
GLOBAL ENTRY APPLICATION FEE CREDIT
The Platinum Card offers a credit towards applying for Global Entry, every 5 years. (since Global Entry is good for 5 years) This is worth $100.
$250 - $100 = $150
You can increase the savings by adding "authorized users" to your account, each with their own unique Platinum Card account number. The best value is paying $175 to add 3 authorized users. Since each of these users has their own account number, you have three credits towards Global Entry, worth $300! This is only valuable if you have a need for Global Entry for multiple persons (ie. your family).
$150 + $175 - $300 = $25
I'd pay $25 for the rest of the Platinum Card benefits! (and I'm not even done talking about them)
Okay, so Global Entry credit only happens every 5 years...how do you continue collecting value for the annual fee in the other years?
Let's assume you + 3 authorized users = $450 + $175 = $625 and that you collected the $200 airline fee credit = $425. (the $200 airline fee credit can only be redeemed by the primary cardholder) Let's knock out the annual fee dollar by dollar...
LOUNGE ACCESS
The Platinum Card comes with complimentary access to Delta Sky Clubs as well as AMEX's new Centurion Lounges, which are starting to pop up in airports around the U.S. Cardholders also have access to Priority Pass Select lounges, some located in the U.S. and many of them internationally. If you travel a lot and have long layovers, having lounge access is very helpful. Many lounges have comfortable seating areas and workspaces, free wi-fi, clean restrooms (some with shower facilities), snacks and/or buffets, and complimentary beverages, including alcohol. The Centurion Lounges are very nice and fortunately are in many of the airports that I frequent; I described the one in Las Vegas in my travel blog. The admission policy into the Centurion Lounge is very generous as a cardholder can bring him/herself and spouse/children under 18, or 2 guests. The Delta Sky Club requires a boarding pass on a flight operated by Delta, and only the cardholder can enter for free; guests pay $29. This is the same for Priority Pass Select lounges; only the cardholder can enter for free and guests pay $27. (you must carry a Priority Pass Select plastic card by calling AMEX; your Platinum Card itself does not grant admission to a Priority Pass Select lounge)
$425 - $100 (pessimistic example: 2 visits to lounges at $50 each) = $325
BOINGO WORLDWIDE INTERNET
The Platinum Card comes with a complimentary Boingo account, offering wi-fi access for up to 4 devices at 1 million hotspots worldwide. The going rate is around $10/mo, so that is $120 in value every year. I've found this handy a few times traveling in Europe. Boingo hotspots aren't everywhere, but it's nice to have just in case.
$325 - $120 = $205
Each card can open a Boingo account, so the additional users can benefit and we've already got the annual fee covered and then some. Let's pretend there aren't any other Boingo accounts and keep the tally going...
PREMIUM ROADSIDE ASSISTANCE
Locked your keys in your car? Battery died? Need a tow? Ran out of gas? Platinum Card holders can call 1-800-333-AMEX and receive complimentary Premium Roadside Assistance, up to four times a year. It covers things like towing up to 10 miles, 2 gallons of gas, jump starts, lock-outs, etc. Full details here. You can stop paying for a AAA classic membership or your auto insurance policy for roadside assistance. How many times do you actually use the service? Probably none! So four times a year should cover most people.
$205 - $56 (AAA classic membership fee) = $149
FINE HOTELS & RESORTS PROGRAM (FHR)
The hotels participating in the Fine Hotels & Resorts program are usually higher-priced, luxury brands. But if you use this program even once, it would definitely cover the remaining portion of the annual fee! I haven't yet updated my travel blog regarding my experience using FHR, but to make a long story short, I stayed at a hotel that I had to go to anyway for an event, which happened to be on the FHR list. The FHR website allowed me to book a lower-priced room that wasn't even offered on the hotel's own website! I also received a $100 hotel credit, an upgrade to the next room category, daily breakfast for 2 people, and early checkin/late checkout privileges. I'd say that the $149 running total is now eliminated.
And we're not even done yet...
AMEX OFFERS
Okay, AMEX offers aren't limited to just the Platinum Card; many other American Express cards have it (check your AMEX account online for offers that can be added to your card), but this adds to the "profit", especially for things you already buy. I've personally taken advantage of offers such as:
- $10 off $75 at Whole Foods
- $10 off $75 at AT&T (use up to 3 times)
- $20 off $20 at samsclub.com
- $5 off $5 at iTunes
- $25 off $50 at Smart and Final (use up to 3 times, I bought gas gift cards with this)
- $5 off $25 at Chevron
- $10 off $50 at Lowe's
- $25 off $100 at Staples (I bought Southwest gift cards)
- $10 off $10 during Small Business Saturday (use up to 3 times)
Now you can see that I don't pay an annual fee for my Platinum Card, but make a profit, because of all the benefits I reap with my normal spending habits.
AND SO MUCH MORE...
I'm not going to get into any more details as this is getting long, but here are other benefits that I use:
- Access to pre-sale tickets for concerts and events
- National Emerald Club Executive level membership
- Starwood Gold Preferred Guest level membership
- No foreign transaction fees
Now that you know more about the Platinum Card, do you see value in holding it in your situation? It's not for everyone, but if you travel a lot, you'll find that the benefits outweigh the annual fee, as the money you would have spent covers the cost and then some. Adding additional users further increases the potential value; they will have all the same benefits as the primary cardholder, except for the $200 airline credit. I'll keep my Platinum Card (and the 3 additional users) until the benefits disappear...deals don't last forever.
Interested in applying? You'd need very good credit. If you are lucky, you can find a 100,000 point sign-up bonus offer on CardMatch, so give that a try. If you are not lucky, please feel free to sign up through this link to the AMEX website, currently offering 40,000 points for spending $3000 in three months. I'd get 7500 points as a referral bonus if you are approved...thank you in advance!
One last thing: as this is a charge card, the balance must be paid in full every month. However, large transactions may trigger the "extended payment plan" and you are allowed to carry that portion of the balance. I do not recommend carrying a balance...pay in full!
