The Points Mom

I Converted Rob’s Business Gold Card To The New Version-Should You?

Apply For The American Express Business Gold Card Here

Despite the increased annual fee (from 175 to 295), I converted Rob’s old Business Gold Rewards card to the latest version.  The old card offered that you could choose one of the five categories to earn 3x Membership Rewards points per $1.  We had always chosen advertising as Rob spends a lot on advertising through his firm.  However, the new card allows you to choose two out of 6 categories in which you can earn 4x Membership Rewards points. These six categories are

Airfare purchased directly from airlines

Advertising (online, TV, radio)

Restaurants

Gas Stations

Shipping

Computer hardware, software and cloud computing purchases.

Note, you earn 1x Membership Rewards points in the remaining four categories and on all other purchases and the 4X points applies to the first $150,000 in combined purchases from these 2 categories each calendar year then earn 1 point per dollar.

We will obviously continue to select advertising and I think we will add gas to the mix.  (I would have said restaurants, but I just was approved for the American Express Gold card and will be earning my 4x points on restaurants with that card!)

And I can justify the higher annual fee. Valuations of Membership Rewards come in at about 1.9 cents per point.  I only need Rob to spend 3,881 on advertising and we make up the $295 fee.  (3,881 * 4 points per $ = 15,524 points) then (15,524 points * .019 = $295).  Rob spends much more each year on advertising than just $3,881 so it is definitely worth it to us to earn the 4x points versus the 3x.  Also, this quick calculation does not even account for the fact that we will now be earning 4x points on gas purchases.  (I currently have us using our American Express Everyday Preferred cards on gas for 2x points but I will likely get rid of those based on this new card and my new Amex Gold personal card.  Stay tuned on that front.)

Looking forward to so many more American Express Membership Rewards points…..I see free flights to Japan in our future.