Best American Express Cards

What Is the History of American Express?

American Express is a storied and diversified global financial services powerhouse with roots reaching back to the 19th century. It was launched in 1850 to provide express shipments of goods, securities, and currency within New York state. The company is currently a leader in charge card, credit card, and traveler's check lines of business.

What Kinds of Credit Cards Does American Express Issue?

Since American Express is both a network and a card issuer, it issues cards exclusively on its network-branded platform and doesn't issue Visa, Mastercard, or Discover network-branded cards. Amex primarily offers rewards charge cards and credit cards with cash back, generic travel points, and points tied to co-branded partner loyalty programs. It also has several cards catering to the small-business community.

What Type of Credit Is Required for American Express?

American Express generally requires excellent credit for its card products but also offers a few cards aimed at those with merely good credit. Amex does not offer cards for fair or bad credit and doesn't have options for student or secured credit cards.

How Does Amex's Membership Rewards Program Work?

American Express Membership Rewards are offered on purchases with a select number of Amex cards. Some provide a flat number of points on all purchases, while others offer bonus points on certain spending categories like airfare, prepaid hotels, restaurants, gas, or groceries.

The following American Express cards offer Membership Rewards:

• American Express Green Card
• American Express Gold Card
• The Platinum Card from American Express
• Amex Everyday
• Amex Everyday Preferred
• Blue Business Plus Credit Card
• Business Green Rewards Card
• Business Gold Card
• Business Platinum Card

For more details on Membership Rewards, please see our Ultimate Guide to American Express Membership Rewards.

Aside from the American Express rewards program, Amex offers other rewards cards that include cash back (both flat-rate rewards and those with bonus cash back on specific spending categories) and partner-based programs like airline, hotel, and retailer loyalty points.

How Good Is American Express Customer Service?

American Express receives excellent marks for its customer service, scoring 838 out of 1,000 points in the 2019 J.D. Power U.S. Credit Card Satisfaction Study, putting it second among national card issuers. (The average score among major national issuers was 806.) Only Discover, with 842 points, ranked higher for credit card satisfaction. 

Methodology

Information Gathering

In order to track and assess the U.S. domestic credit card market, we gather scores of data points on nearly 300 cards. This data is collected manually from both card-issuer websites and publicly available sources. 

To ensure that our information is as up-to-date as possible, we deploy automated tools that monitor changes in such key data as annual percentage rates, introductory rates, introductory periods, bonus offers, rewards earnings rates, fees, and card benefits. We then rapidly make any needed updates to our card listings, reviews, and recommendations to ensure that readers have the most reliable information and advice. 

Initial Scoring

Once we collect credit card data we organize it in our database according to features, which roll up into feature sets (such as rewards, interest, fees, benefits, and security/customer service). Each individual card feature is assigned a star rating score on a 1 to 5 scale using a prescribed formula. For instance, for a one-time bonus score we would use a formula like: If bonus is $500 or greater, then assign a score of 5; if $300-$499, then 4; and so forth. 

Weighting of Scores

Once all of a card’s features have received a score we apply a weighting factor to each feature to arrive at a weighted average score for the card (according to the general category in which it resides, such as travel rewards). 

This weighting process allows us to assign significantly more emphasis to the attributes important to a particular category and downplay those that are less relevant to it. That lets us objectively identify cards that stand out in their category and indicate why they do. For example, with travel rewards cards we apply significantly more weight to such travel-specific features as airport lounge access or primary rental car insurance than we do to attributes such as interest rates or fees that might be more strongly considered for other categories, such as balance-transfer cards.

Earnings Rates

Another critical factor we consider when rating and ranking travel cards and other types of rewards cards are the cards’ effective earnings rates. We first calculate the average value of points or miles for all the rewards cards in our database, a painstaking process that entails collecting all airline fare data by carrier across scores of popular domestic and international city-pairs along with per-night hotel charges at all major hotel brands. 

The required points and miles for air travel or hotel stays from the various reward programs is then used to calculate an effective earnings rate for each card. That allows our readers to make the most informed choices. By putting a card’s large one-time bonus or earnings rates into context across many dimensions and card features, readers can more readily weigh the card’s benefits relative to its costs. Uncovering the true but often opaque redemption value of rewards points or miles is, we feel, the only reliable way to make cogent choices among competing value-based cards.  

Card Features We Score

As mentioned above, we place significant weight on certain travel-related features in determining our ratings for each rewards card. Specifically, we base over 50% of our overall assessment score on the combination of the following factors:  

• Maximum value of any one-time bonus, whether in points or miles.
• Initial card spending required to earn any bonus.
• Redemption value of the bonus miles or points.
• Global card acceptance, as detailed by the four card networks (Visa, Mastercard, American Express, and Discover).
• Options to redeem points or miles with travel partners, both airline and hotel.

Another consideration is the cards’ coverage, if any, in these travel-related areas: 

• Car-rental collision insurance, whether primary or secondary.
• Travel accident insurance.
• Lost or delayed luggage insurance.
• Insurance for trip cancellation, interruption, or delay.
• Cell phone loss or damage coverage.
• Roadside assistance and towing.
• Emergency travel medical/dental benefits.

General, non-travel related features that we consider and score include:

• Interest rates, including both introductory and regular APRs for purchases and balance transfers.
• Fees, including those for annual membership, late payments, cash advances, and foreign transactions.
• Security/customer service features.
• Other non-travel benefits, such as access to credit scores, ID theft protection, and contactless payment capability.

How We Reach Our Final Assessments

We rely primarily on the objective scores created by our rating algorithms to determine which card is chosen as the best in each category or subcategory.

However, we may make some adjustments from time to time, to both features and weightings that could affect rankings, based on subjective input from our credit card experts. Any potential modifications will be consistent with Investopedia’s belief that consumers are best served by cards that:

• Provide superior value in earning awards.
• Charge reasonable interest rates in the event that the cardholder carries a balance from month to month.
• Charge fewer and/or more reasonable fees.
• Provide solid customer service, based on the number and quality of customer service features.
• Have helpful and protective security features.