American Express Cobalt® Card vs Neo Credit Card: Which one is better?

American Express Cobalt® Card

More Details

RECOMMENDED CREDIT SCORE*

300

Poor

560

Fair

660

Good

725

Very Good

760

Excellent

Neo Credit Card

3.2

More Details

RECOMMENDED CREDIT SCORE

300

Poor

560

Fair

660

Good

725

Very Good

760

Excellent

Rewards Breakdown

Annual Rewards

$1,041.82

American Express Membership Rewards

Welcome Bonus

$315

American Express Membership Rewards

Annual Fee

$155.8

First Year Value

$1,201.02

$886.02 in years after

Based on $2,000/mo average spending. Calculate your rewards.

Rewards Breakdown

Annual Rewards

$288

Welcome Bonus

Annual Fee

First Year Value

$288

Based on $2,000/mo average spending. Calculate your rewards.

Insurance Included*

Emergency Out of province Medical

$5M/insured Person Up to 15 days

Flight Delay

$500

Baggage Delay

$500

Hotel Burglary Insurance

$500

Lost or Stolen Baggage

$500

Travel Accident

$250,000

Car Rental Damage & Theft

$85K up to 48 days

Mobile Device Insurance

$1000

Purchase Protection

90 days

Extended Warranty

1 year

Insurance Included

N/A

Extra Benefits*

American Express Experiences

Extra Benefits

Neo Premium ($4.99/month)

Neo Travel Benefits ($4.99/month)

Neo Food Cashback boost ($1.99/month)

Neo Mind and Body Perks ($9.99/month)

Interest Rates*

Purchase:

21.99%¹

Cash Advance:

21.99%¹

Interest Rates

Purchase:

19.99% - 29.99%

Cash Advance:

22.99% - 31.99%

Annual Fee*

$155.8

Annual Fee

Income Required*

Min Personal Income:

N/A

Min Household Income:

N/A

Income Required

Min Personal Income:

N/A

Min Household Income:

N/A

Welcome Bonus*

Earn 1,250 Membership Rewards® points for each monthly billing period in which you spend $750 in purchases on your Card in the first Year

Welcome Bonus

N/A

Rewards Rate*

5x points per $1 spent in Restaurants, Fast Foods, Coffee Shops, Food delivery and Groceries up to 12500 points monthly
3x points per $1 spent on eligible streaming subscriptions in Canada
2x points per $1 spent in standalone gasoline stations, Amex Travel online, travel services or local commuter transportation in Canada including ride share services
1x point per $1 spent on all other purchases

Rewards Rate

Average of 5% cashback at Neo Partners
Up to 15% cashback on first purchases at Neo partners
1% cashback on gas and grocery
0% at Neo non-partners but with a 0.5% cashback guarantee on overall purchases
With all these condition, the average estimated cashback on all purchases came to 1.2% by FinlyWealth

Loyalty Program*

American Express Membership Rewards

Loyalty Program

N/A

Point Redemption Options*

Most Optimal

Transfer to Airline Partners

2.1¢ / point

Fixed Point Travel Program

1.66¢ / point

Transfer to Hotel Partners

1.66¢ / point

Statement Credits

1¢ / point

Gift Cards

0.765¢ / point

Amazon.ca

0.7¢ / point

Merchandise

0.63¢ / point

Point Redemption Options

Not Applicable

Is this card worth it?

This card was voted the Best Credit Card in Canada by FinlyWealth. The rewards earned on this card for a person with average spending exceed those of other credit cards in Canada by a huge margin! In addition, the card has good benefit coverage, making it the best candidate to become the main credit card for the majority of people.

Is this card worth it?

The Neo Credit Card is special because it earns rewards based on whether the merchant is a partner or not. Most of the time, the cashback earned at these partners is the highest possible compared to all other credit cards. However, we don't recommend using this card as your main credit card and suggest using it only at partner merchants. This is because the rewards at non-partner merchants are very small, and most merchants are not partnered with Neo.

Pros

Generous welcome bonus of up to 15,000 points
4 different ways of redeeming your points for great value
10 different types of insurance, including travel
Often referred to as the Best Credit Card in Canada

Pros

Unique cashback program which earns cashback based on partner instead of purchase category.
Massive cashback at some partners that any other credit card couldn't beat.
Unique benefit system where perks could be bought with a monthly fee and cancelled after use.

Cons

Less acceptance of American Express at different merchants across Canada
Not all types of travel insurance are covered, especially trip cancellation and interruption insurance

Cons

Almost no cashback or very little cashback is available at non-Neo partners, which comprise most merchants.
No built-in purchase protection and extended warranty benefit.

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American Express Cobalt® Card vs Neo Credit Card: When to go for one over the other

Annual Fees and Requirements

The American Express Cobalt® Card and the Neo Credit Card differ significantly in terms of annual fees and eligibility requirements. The Cobalt® Card has an annual fee, which may be justified by the extensive rewards and benefits it offers. On the other hand, the Neo Credit Card has no annual fee, making it more accessible for those who prefer a no-cost option. Both cards have no specific income requirements, which makes them approachable for a wide range of applicants.

Rewards Comparison

When comparing rewards, the American Express Cobalt® Card stands out with its high points rate on categories like dining, groceries, and travel, offering significant value for those who spend heavily in these areas. It also includes a generous welcome bonus. In contrast, the Neo Credit Card offers cashback primarily through its network of partners, with varying rates depending on where you shop. While the potential cashback can be competitive at certain merchants, overall, the Neo card provides less value compared to the Cobalt® Card's broader rewards structure.

Reward Redemption Options

The American Express Cobalt Card provides multiple redemption options, including point transfers to airline and hotel partners, statement credits, and more, offering flexibility in maximizing rewards. The Neo Credit Card’s cashback is more straightforward and flexible, as it is given directly in cash and can be used anywhere, making it more versatile for everyday spending.

Benefits and Insurance

The American Express Cobalt® Card offers a comprehensive suite of benefits, including various travel insurances, purchase protection, and extended warranties, making it a well-rounded choice for frequent travelers and shoppers. The Neo Credit Card, while unique in its ability to purchase specific perks on a monthly basis, lacks built-in insurance and protection benefits, making it less attractive for those seeking extensive coverage.

Conclusion

For most users, the American Express Cobalt® Card is the superior choice due to its robust rewards, extensive benefits, and insurance coverage. It’s ideal for those who spend heavily on dining, groceries, and travel, and who can justify the annual fee with the rewards earned. However, the Neo Credit Card may appeal to individuals who prefer a no-fee option and shop frequently at Neo partner stores, where they can maximize their cashback.

Annual Fees and Requirements
Rewards Comparison
Reward Redemption Options
Benefits and Insurance
Conclusion

Legal

^*American Express is not responsible for maintaining or monitoring the accuracy of information on this website. If you apply and get approved for an American Express Card, (I/we) may receive compensation from American Express, which can be in the form of monetary payment. Check for full details and current product information.

¹ If you have 2 separate missed Payments, the applicable rates for your account will be 25.99%. If you have 3 or more separate missed payments, the applicable rates will be 28.99%.