The AMEX Cobalt rewards card is one of the most compelling and rewarding credit card on the market.

So, YES, there is a $12.99 monthly fee for the card, but with attractive reward earn rates, a hefty welcome bonus, and generous perks, the card pays for itself and then some. In fact, American Express is known to put a lot of features into their cards, so new cardholders are wise to take some time to really understand what’s available so they get the most out of this top-notch card.

What’s great about this card

The Amazing High Earn Rates

If you’re looking for a rewards credit card that rewards you for everything you spend on, then look no further. The American Express Cobalt Card has one of the highest earn rates on a broad range of everyday purchases. With this card, you’ll earn rewards on the following:

• “Eats and drinks”: Five Membership Rewards® points per dollar on groceries, dining out, cafes, bars, takeout, and delivery services.
• “Travel and transit”: Two Membership Rewards® points per dollar on gas, flight and hotel bookings, transit (buses, subways, streetcars), taxis, and ride shares.
• Everything else: One Membership Rewards® point per dollar on every other purchase.

As if that’s not enough, you’ll also earn one additional point for eligible hotel or car rental purchases made through the Amex travel website.

Hefty welcome bonuses

Another exciting feature of the Amex Cobalt Card is the first-year rolling bonus, which allows cardholders to earn 2,500 extra points per month when you meet a small monthly spending cap of $500. If you spend at least $500 every month for the first year, you’ll earn a whopping 30,000 bonus points. Like…what!?

How much are the points worth? Most people use the points as a credit towards their balance. Every 1000 points is worth $10! So 30,000 bonus points is worth $30 plus the 500 points you earn by spending $500. So you will in fact get $35.

You have the potential to top that off with another 20,000 points when you spend at least $3,000 in the first three months of card membership. That adds up to a total of 50,000 points, with a potential conversion value of $500.

Monthly (not annual) fee

It’s not surprising for a credit card with this much earning power to charge a fee. But the Amex Cobalt Card adds a twist. Instead of a flat annual fee, you’ll pay a monthly fee of $12.99.

This can help you in a few ways. For one, you can easily decide if you’re earning enough on the card to justify paying the monthly fee. If you’re not earning at least $12.99 per month in rewards, the card isn’t worth it. Period. Secondly, if you decide you’re not earning enough per month to warrant having it, you can cancel at any time. Unlike cards with annual fees, you won’t have to stomach losing a full yearly charge.

More than likely, however, you’ll find the rewards will outweigh the fee. If that’s the case, the monthly fee may help you afford the card, since you won’t have to put down a full lump sum at once.

Travel and shopping insurance

In addition to rewards and welcome bonuses, the Amex Cobalt Card comes with comprehensive travel and shopping insurance package. When you’re a cardholder, here’s what you’ll benefit from:

• Extended warranty (one additional year on warranties of five years or less)
• Purchase protection (90 days of damage or theft protection)
• Flight delay (up to $500 in coverage)
• Baggage delay (up to $500 for four days of coverage)
• Baggage damage or theft (up to $500)
• Travel accident (up to $250,000)
• Out-of-province/country medical insurance (up to $5,000,000)
• Car rental damage/theft (up to $85,000)
• Hotel burglary (up to $500)

No charge on supplementary cards

Reward cards are known to charge you a fee on top of the annual fee for supplementary cards. This is not so with the Amex Cobalt Card. You’ll pay nothing to take out cards for your authorized users (up to nine cards), nor any fees to replace yours if it’s lost or stolen.

No strict income requirements

Unlike other rewards cards, which require users to earn a certain income, the Amex Cobalt Card doesn’t have such strict criteria. As long as your credit score is in the fair to good range (650-780), you should be able to get this card.

Exclusive Amex benefits for cardholders

Throughout the year, American Express will treat you with extra bonuses, rewards, and perks. As a cardholder, you may enjoy the following:

• The Hotel Collection: A hotel credit up to $100 for certain amenities (room service, spa visits, golfing) and a free room upgrade at over 600 participating hotels in 30 countries.
• American Express Experiences: As a cardholder, you may get private shopping experiences, curated wellness offers, advanced movie screenings, special access to food festivals, pre-sale access to high-demand concerts, theatre productions, and reserved seatings at sporting events.
• Exclusive offers: Throughout the year, you may receive offers to earn more rewards at restaurants or retail stores, as well as deals on flights and hotel bookings.

What’s not great

Earning cap on rewards

Though the earn rate on the American Express Cobalt Card is substantial, you do have an earning cap on the “eats and drinks” category. The five times earn rate has an annual maximum of $30,000 spent. After you spend $30,000 on any purchases within that category, your earn rate will fall to one point for every dollar spent.

Amex accepted at fewer places

In general, fewer retailers accept American Express than Visa or Mastercard. However, Amex has closed the gap over the years.

An easy solution to this, is to simply have a Visa or Mastercard on hand in the offhand chance you’re somewhere that doesn’t take Amex.

How it compares

With a massive earn rate, a comprehensive insurance suite, and a welcome bonus to make you smile, the Amex Cobalt Card is one of the most exciting rewards credit cards in Canada. When compared with other rewards cards with a similar annual fee, the five times earn rate on “eats and drinks” is highly competitive, as are the bonuses and perks you’ll enjoy throughout the year.

Perhaps one point of comparison is the manner in which you can transfer Amex points to partner loyalty programs. In the case of the Amex Cobalt Card, you really have one option: the Marriot Bonvoy program. When you transfer Amex points to the Marriot Bonvoy program, which allows you to book hotels at over 7,000 locations, you’ll get a ratio of 1:1.2. So, for every 1,000 Amex points you convert, you’ll get 1,200 Marriot Bonvoy points. Not bad, right?

The only downside is that you cannot convert Amex points to airline points, such as Aeroplan. But! Our solution to that is to simply book your travel on the AMEX Cobalt card, earn your points, and then use your points for statement credits.

American Express Cobalt Card: Earn more on travel

Now, if you want more value for your points, you can find and buy flights through American Express’s Fixed Points Travel Program. Through this program, Amex will allow you to redeem a fixed number of points for certain routes up to a maximum amount.

For example, if you’re taking a short haul trip (say Toronto to Montreal), you can buy a $300 plane ticket with 15,000 points.

How do you apply for the American Express Cobalt Card?

In order to apply for the American Express Cobalt Card, you should be the age of majority in your province (either 18 or 19) and have a good credit score (650 or above).

If you meet those requirements, applying is fairly simple. Just go to the American Express website, find the Cobalt Card, and fill out the application. Once you submit your application, you’ll hear back from American Express almost instantly.

Who should get this card?

The American Express Cobalt Card is an excellent all-around rewards credit card with a hefty earn rate for everyday purchases and a lucrative rolling sign-up bonus for new cardholders.

Since the points redemptions are geared toward travelers, this card is ideal for Canadian travelers and folks who like to eat out at restaurants often.