American Express Cobalt Card Review

Earn 1,250 Membership Rewards^® points for each monthly billing period in which you spend $750 in purchases on your amex cobalt credit card in the first Year. That's up to 15,000 Membership Rewards^® points.

How You Earn Rewards with the American Express Cobalt Card

With the American Express Cobalt Card, you earn points as follows:

• 5x points per $1 spent on eligible eats and drinks in Canada, including groceries and food delivery (up to 12,500 points per month)
• 3x points per $1 spent on eligible streaming subscriptions in Canada
• 2x points per $1 spent on eligible gas, transit & ride share in Canada
• 1x point per $1 spent on all other purchases

As you can see, this card optimizes common categories like food and groceries, two of the most popular monthly expenses. Given this generous rewards program, the Amex Cobalt earns the highest rewards for the majority of people.

One restriction you have to be aware of is that there is a cap on how much you can earn in the grocery and restaurant category, which is 12,500 points, meaning $2,500 spent every month. While most people don't even get near the cap, if you are a very high spender and will frequently exceed that cap, then this card may limit your rewards, however on average you'll still come ahead with it.

How You Redeem Rewards with the American Express Cobalt Card

American Express MR points are known for the flexibility they offer, mainly because they can be used in many different ways and are potentially worth a lot of money. In fact, they were voted the most flexible Points Program by FinlyWealth.

We'll go through the most optimal redemption methods and then work our way down to the ones that are less optimal.

Transfer MR points to other airlines

Basically, you can convert your American Express points to these available Airline partner programs. These programs are great ways to maximize the value of your points by finding flights that don't use that many points.

Some of the best airlines to use MR points on is Air Canada Aeroplan, British Airways or Air France KLM Flying Blue. With these airlines, your MR points can be transferred over to the respective loyalty programs at a 1:1 ratio, with a value of 2 cents per point.

The Fixed Points Travel Program

This is the second-best option for redeeming your MR points. You essentially can redeem a fix number of your points to fly to a specific region. These points can cover the base cost of your ticket, leaving you to pay for the taxes or any other fees.

Here's a chart from the Amex website that showcases the Economy class.

A good way to maximize your points is to redeem them towards certain short-haul routes. These can generally yield 2 cents per point, however, there's a limited selection that you can choose from. To redeem, simply book a flight through the American Express Travel portal and log into your account.

Transfer MR points to hotel programs

You can transfer your points to hotel programs to book your stay. Marriott Bonvoy is the better of the 2 since it provides more value on average, at about 1.1 cents per point.

Redeem MR points for any purchase

This option gives a relatively lower redemption rate compared to those mentioned above. For example, if you go to your Membership Rewards page, you can get a statement credit to pay off any of your past month's purchases with your points balance. This redemption will give you 1 cent per point, which is still a considerable amount.

Redeem MR points for Gift Cards, Amazon and Merchandise

Generally, these redemption options are not recommended because they would give you even less value than redeeming for statement credits. If you're buying from Amazon or select merchandise, it's best to simply make the purchase and pay it off with points later using the statement credit redemption.

How to Apply for the Cobalt American Express Card

To apply for the Cobalt Card, follow these steps:

1. Click on the "Apply now" button on the American Express website.
2. Indicate whether you are a new or returning American Express customer. If you’re an existing customer, sign in with your account; otherwise, proceed as a new applicant.
3. Review the card's terms and conditions, then click "Agree and continue."
4. Enter your personal information such as your name, contact details, and address.
5. Provide your financial information, including your income, employment status, and any other required details.
6. Upload any supporting documentation, if necessary.
7. Review your application carefully, then hit "Submit Application."

7 Benefits of the American Express Cobalt Card

There are several benefits that make the American Express Cobalt Card worthwhile.

3 Downsides of the American Express Cobalt Credit Card

Before committing, there are also a few drawbacks to consider.