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Credit Cards Business Amex Gold

Discussion in 'questions. answers. conversations.' started by laffingleigh, Nov 18, 2017.

  1. laffingleigh

    laffingleigh New Member

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    Hi there,

    I am currently within my first year of having the Amex Business Gold card. For $175/year, I do not think I'm putting enough spend on this to warrant having this card. Most spend goes on the Chase Business Ink Cash and the Amex Business Plus. Two questions:
    • I know this is basic, but I'm having trouble here. What is the math equation to figure out if I spend enough or not to make the card worth it?
    • Assuming my instincts are correct and I am not spending enough, what card do you think I should downgrade to? I would normally think to just close it but I think that's bad for credit scores.
    Leigh
     
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  2. MidSouth Skier

    MidSouth Skier Well-Known Member

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    Welcome @laffingleigh - the thing about the Business Gold card is that it's a charge card, so if Amex has another business charge card with lower/no fee then you can do that downgrade. I wanted the Blue Business Plus (a free MR-earning card) and had to apply for it. But for me it was a no-brainer as I was barely using the Gold card and was paying handsomely for the privilege.

    Ben values Membership Rewards points at 1.7 cents apiece so you can use that value in your math to see if keeping the Gold card makes sense for you or not.
     
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  3. laffingleigh

    laffingleigh New Member

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    Thanks MSS. I'm still not clear on the math. Do I divide $175/$0.017? Is that how I get the number that breaks even?

    I don't see another charge card I could downgrade to. They all have annual fees. So it's downgrade to one of those or cancel?
     
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  4. Gaurav

    Gaurav Well-Known Member

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    You would multiply the incremental points you earn with the Business gold by 0.017 and the result would need to exceed the $175 annual fee to justify the card. In this case since the BB+ effectively gives you 2x MR everywhere, you would count any MR more than 2x you earn on a transaction with the Gold. I agree it would be hard to justify unless you are spending significantly in the bonus categories.

    You should just cancel the card. AmEx does not give you the bonus on another card if you have had it before so there is no point in downgrading and passing on a potential bonus with another card down the line. Hope this helps.
     
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    Last edited: Nov 20, 2017
    MidSouth Skier and rickyw like this.
  5. laffingleigh

    laffingleigh New Member

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    Gaurav! So helpful!! Thank you! Card canceled.
     
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