What are the benefits of American Express credit cards?

American Express is a good credit card company for people with good credit or excellent credit who want to earn bonus rewards on a variety of purchases. American Express cards also come with an array of sign-up bonuses and introductory 0% APR promotions, in addition to a certain air of prestige.… read full answer

As good as American Express cards are, they’re not for everybody. American Express does not offer credit cards for students, or cards for applicants with less than good credit, such as secured cards. Additionally, Amex cards aren’t always the cheapest credit cards to own. While a number of Amex cards provide great value with a $0 annual fee, a card like Amex Platinum, with all of its high-end perks, charges an annual fee of $550.

In terms of credit card acceptance, the number of U.S. merchants that take American Express cards has risen in recent years to 10.6 million – the same as Discover, but slightly lower than the Visa and Mastercard networks. Worldwide, the number of countries where American Express cards are accepted trails the other three major credit card networks. Even in countries where American Express is accepted, some individual merchants may not accept them.

American Express vs. Mastercard is a debate typically reserved for people with good or excellent credit. That’s because American Express, the largest U.S. credit card company by purchase volume, only issues credit cards to people in the top tiers of the credit score scale. Mastercard credit cards, on the other hand, are available to people of all credit levels. But that’s not even the most important distinction between the two companies. What really sets them apart is the fact that Mastercards are issued by lots of different banks and credit unions, while American Express credit cards are largely issued by Amex itself. Both American Express and Mastercard are credit card … read full answernetworks, you see, but only Amex is a credit card issuer, too.

So while Mastercard handles transactions and determines where its cards can be used, it has no hand in setting the rates and rewards on individual cards. American Express does have that freedom, though.

American Express vs. Mastercard – Key Points:

• Network/Issuer: American Express does both, while Mastercard is a network only.
• Credit Cards in Circulation (U.S.): 47.5 million Amex; 199.8 million Mastercard.
• U.S. acceptance locations: 10.7 million for Mastercard; 8.5 for American Express.
• International Acceptance: 160+ countries and territories take American Express cards, while a Mastercard works in 210+.
• Major Issuers with cards on network: Cards on the Amex network are issued by American Express, USAA, PenFed, First National Bank of Omaha and Department Stores National Bank, among a few others. Nine of the 15 largest U.S. credit card issuers, along with scores of smaller banks and credit unions, offer cards on the Mastercard network. They include Chase, Bank of America, Citi, Capital One and U.S. Bank. Some of these institutions issue cards on both networks.
• Types of Cards: The American Express network has regular credit cards, charge cards, debit cards, gift cards and prepaid cards. Mastercard offers all but charge cards.
• Network benefits: American Express and Mastercard both have many benefits including extended warranties, purchase protection, price protection, rental car insurance and travel insurance, among others.

Surprisingly, American Express and Mastercard have similar purchase volume within the U.S., despite far more merchants accepting Mastercard. That’s due, at least in part, to Amex catering to wealthy high-spenders with cards that often emphasize rewards over financing.

Despite their differences, both American Express and Mastercard have some great credit card choices, and they each take the top spot in different categories.

Here are some of the top American Express and Mastercard credit cards:

• Travel Rewards: Lufthansa Credit Card
• Cash Back: Citi® Double Cash Card – 18 month BT offer
• Gas & Groceries: Blue Cash Preferred® Card from American Express
• Premium Perks: Citi Premier® Card
• Business: American Express Blue Business Cash™ Card
• Student: Deserve® EDU Mastercard for Students
• Limited Credit: Capital One Platinum Credit Card
• Bad Credit: Secured Mastercard® from Capital One

That’s just a taste of the best American Express cards and the best Mastercard credit cards. And now that you know the differences between the two networks, you’ll be able to make a more informed choice about which card to get. But don’t forget that there are two other networks, too: Discover and Visa.

An American Express card is not an ideal option for a first credit card.

There are better options out there since your goal should be to find a card that does not charge an annual fee. If you have an active college email address, we recommend comparing our editor’s picks for the … read full answerbest student credit cards. If not, the Capital One Platinum Card and the Capital One Secured Card both are excellent options.

You can find out more about them and apply for one here.