Is Upgrading to the American Express Platinum Worthwhile?

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Update: Some offers mentioned below are no longer available. View the current offers here – Starwood Preferred Guest® Credit Card from American ExpressThe Business Platinum® Card from American Express OPEN

I recently helped my parents book an epic trip to Italy using 125,000 Delta SkyMiles each for Alitalia business class from New York (JFK)- Rome and returning from Milan back to JFK. My parents used their miles from the Barclaycard Arrival Plus World Elite Mastercard to pay for some nice bed and breakfasts in Italy, and then used Hyatt and Starpoints to cover the remainder of their hotel stays.

I’ve been talking with them about their trip and they’re pretty much all set, but my Dad called today asking about which cards he should use abroad. They know the Barclaycard Arrival Plus has Chip + PIN technology, which will come in handy, but my Dad has been a loyal Amex Gold and SPG Amex cardholder for years, but sadly both of them charge foreign transaction fees. When we traveled on our father/son trip to Europe a couple of years ago, I had to literally slap his wrist several times when he tried to pay with those cards. Earlier today Nick Ewen wrote about cards we wish didn’t have foreign transaction fees, and both of those cards are on the list.

I recently helped my parents book a trip to Rome (Shutterstock)
I recently helped my parents book a trip to Rome (Image courtesy of Shutterstock)

My dad said he called American Express and they offered him 50,000 Membership Rewards points to upgrade his longstanding Amex Gold card to the American Express Platinum Card, and he was wondering if it’s worth upgrading since that means an increase in the annual fee from $150 to $450.

My response: Absolutely.

Simply put, for that $300 difference, he’d get:

Alitalia Flights JFK FCO MXP
25,000 Delta SkyMiles and $50 per ticket sure beats paying $5,011.60

Plus, at 1.8 cents apiece, to me those 50,000 points are worth at least $900. On this trip alone, he had transferred existing Amex Membership Rewards points to Delta to book their flights on Alitalia. For 125,000 Delta SkyMiles and $50 each, they got tickets that would have cost a total of $5,011.60, meaning they got over 4 cents per point in value for their redemption. If you can redeem for that kind of value, the 50,000 points would be worth roughly $2,000!

Once I talked my dad through these benefits, which over the next year will be over $1,300 in just the points and airline credits  (and there are many more benefits I didn’t even touch on), he realized that upgrading to the American Express Platinum card was a no-brainer. If you have an existing Amex charge card, you can always call member services and see if they’ll offer you a deal to upgrade your card. If not, you can apply as a new cardholder and still earn 60,000 Membership Rewards points (after spending $5,000 on the card in the first 3 months).

American Express does send out targeted offers from time to time, so keep an eye out for them in the mail. For instance, I recently got The Business Platinum® Card from American Express OPEN (with a targeted offer of 100,000 points), which has the same basic benefits along with some enhanced options like OPEN savings and better flight redemption rates.

Centurion Lounge nooks LaGuardia
The Amex Platinum cards give you access to the new Centurion Lounges.

You can also check the Card March Tool to see instantly if American Express has identified you for an offer. I’ve spoken with reps at American Express, who said they’ve recently uploaded some lucrative targeted offers for consumers. There’s no hard credit pull for checking, and other issuers put targeted offers from time to time, so scope it out if you haven’t done so recently.

Overall, on the surface it may seem like $450 a year is a huge fee, but if you get a solid sign-up bonus and know how to maximize the benefits (especially the yearly $200 in airline rebates), the Platinum card is a no-brainer for many travelers.

The Platinum Card® from American Express

The American Express Platinum card has some of the best perks out there: cardholders enjoy the best domestic lounge access (Delta SkyClubs, Centurion Lounges, and Priority Pass), a $200 annual airline fee credit as well as up to $200 in Uber credits, and mid-tier elite status at SPG, Marriott, and Hilton. Combined with the 60,000 point welcome offer -- worth $1,140 based on TPG's valuations -- this card is a no-brainer for frequent travelers. Here are 5 reasons you should consider this card, as well as how you can figure out if the $550 annual fee makes sense for you.

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More Things to Know
  • Earn 60,000 Membership Rewards® points after you use your new Card to make $5,000 in purchases in your first 3 months.
  • Up to $200 for Uber rides annually. Credit and Uber VIP status available to Basic Card Member only.
  • 5X Membership Rewards® points on flights booked directly with airlines or with American Express Travel.
  • 5X Membership Rewards® points on eligible hotels booked on amextravel.com.
  • As a Platinum Card Member, you can enjoy access to the Global Lounge Collection, the only credit card airport lounge access program that includes proprietary lounge locations around the world.
  • Receive complimentary benefits with an average total value of $550 with Fine Hotels & Resorts. Learn More.
  • $200 Airline Fee Credit, up to $200 per calendar year in baggage fees and more at one qualifying airline.
  • Get up to $100 in statement credits annually for purchases at Saks Fifth Avenue on your Platinum Card®. That's up to $50 in statement credits semi-annually. Enrollment required.
  • $550 annual fee.
  • Terms Apply.
  • See Rates & Fees
Intro APR on Purchases
N/A
Regular APR
N/A
Annual Fee
$550
Balance Transfer Fee
See Terms
Recommended Credit
Excellent/Good
Terms and restrictions apply. See rates & fees.

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