Bianca Smith, WalletHub Credit Cards Analyst
@bianca_stoian
The main reason Amex cards are so expensive is that many American Express credit cards offer generous rewards rates and high-end perks, which justify their steep annual fees. Amex cards are designed for people with good credit and a lot of income who are likely to charge large amounts to their cards every month.
That being said, not all American Express cards are expensive to own. There are several $0 annual fee Amex credit cards that still offer great rewards on purchases.
Reasons Why Amex Cards Are Expensive
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Amex credit cards are designed for high spenders
All Amex credit card offers are aimed at people with good credit or better and lots of expendable income. According to the Amex website, American Express cardholders spend an average of 30% more per transaction than non-Amex cardholders.
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Amex charges significant fees
The Centurion® Card from American Express, for instance, charges cardmembers a $5,000 fee every year, as well as a one-time $10,000 initiation fee. Annual fees for other Amex cards range from $0 to $895.
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Amex credit cards come with luxury perks
Depending on the card, Amex users can benefit from big initial bonus offers and generous ongoing rewards rates, as well as exclusive perks such as access to high-end airport lounges, airfare credits, and concierge services.
You can learn more and compare American Express credit card offers on WalletHub.
Popular Credit Cards from American Express, Our Partner
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People also ask
Does American Express help build credit?
Yes, American Express credit cards help build credit if you pay your bill on time each month and use your card responsibly. American Express reports your account information each month to all three major credit bureaus, and your credit score is based on the contents of your credit reports.
How to Build Credit with an American Express Credit Card
- Keep your credit utilization low. It’s good to keep your balance below 30% of your credit limit...
Are Amex cards worth it?
An Amex card is worth getting if you have good credit or better and you want to earn attractive rewards on purchases that you’ll pay off by the due date every month. Amex cards often have worthwhile low intro APR promotions and valuable cardholder benefits, too.
As long as the money you save with the American Express card you select cancels out or exceeds any annual fees and finance charges, that Amex card is...
read full answer by Joseph Bulebush, WalletHub AnalystIs American Express for rich people?
No, American Express is not specifically for rich people, even though it does have a high level of status in many people’s minds. Applicants need good or excellent credit scores of 700+ to qualify for Amex credit cards, and you don’t need to be rich to have a good credit score.
In addition, some forums even report approvals for people with incomes as low as $25,000 per year. An income of $60,000 or higher...
read full answer by Michael Battle, WalletHub Credit Card AnalystDid we answer your question?
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