March 6, 2018
Review: American Express EveryDay Credit Card
I’m working on reviewing every major travel related credit card available. So expect to see more credit card related articles in the coming weeks and months. The Amex EveryDay credit card is a great no annual fee travel card and a good introductory card for miles and points enthusiasts. Let’s break it down.
The Amex EveryDay card comes with 10,000 Membership Rewards points after spending $1,000 in the first three months of account opening. It also offers a $0 balance transfer fee on transfers requested within the first 60 days of account opening. The intro APR on purchases and balance transfers is 0% for 15 months, then a variable 14.24% to 25.24%.
The $0 balance transfer fee is a huge benefit if you’re carrying significant credit card debt on other cards. The first rule when it comes to credit cards is to always pay off your balance in full. With the Amex EveryDay card, you can transfer your debt over from other cards without paying a fee (usually it’s 3%). And you’ll have 15 months to pay it off with a 0% APR. The 10,000 Membership Rewards points are nice but nothing to go crazy about. More on that below.
The Amex EveryDay card earns 2x Membership Rewards points per $1 at US supermarkets on up to $6,000 per year. It earns 1x point per $1 on everything else. You’ll earn a 20% bonus if you make 20+ purchases in a single billing period. When you factor in the 20% bonus, you’ll be earning 2.4x points per $1 at US supermarkets (on up to $6,000) and 1.2x on everything else.
American Express MR points can be transferred to many airlines at a 1:1 ratio. That makes earning 2.4x on supermarket purchases and 1.2x on everything else very appealing for a no annual fee card. There are cards which earn more on those categories, but they have fees.
As I mentioned, the Amex EveryDay card earns Membership Rewards points. This is important because MR points can be redeemed in several ways. You can redeem them for statement charges, you can use them to shop on Amazon, or use them to pay for Uber rides. The problem is you get between 0.5 cents-1 cent per point if you redeem them this way-a pretty bad value.
The best way to redeem Membership Rewards points is to transfer them to American Express’s 16 airline or three hotel partners, and then book high value awards with points. In addition to the above airlines, MR points can be transferred to the Choice Privileges, Hilton Honors, and SPG hotel programs.
Every airline & hotel program has its own benefits and sweet spots when it comes to booking awards. Here’s one example. You can transfer MR points to Virgin Atlantic Flying Club at a 1:1 ratio. Transfer 110,000 points to Virgin Atlantic, and then use those points to book a roundtrip flight between the West Coast and Japan in ANA First Class. Those flights typically sell for around $18,000.
Redeeming your points for that booking would net you an astronomical 16 cents per point ($18,000/110,000). Compare that with the 0.5- 1 cent per point you’d get by redeeming them for statement credits or Uber rides and you’ll see why the best value is almost always to transfer the points to an airline or hotel partner.
Cardholders have access to American Express Offers. This targets specific promotions to cardholders like 20% Off Hilton Stays, bonus points for airline bookings, etc. The card also comes with travel accident insurance and secondary rental car insurance.
The Amex EveryDay card has no annual fee, but it does charge foreign transaction fees. That means it’s best to only use it in the United States.
Should You Get It?
This is a great entry level travel card with no annual fee. Membership Rewards points are one of four transferrable currencies used for airline and hotel bookings, so they can be enormously useful. It’s comparable to the no fee Freedom Unlimited card from Chase. If you really don’t want to pay an annual fee this is a good option. If you are comfortable paying an annual fee, there are better travel credit cards available.
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