American Express Cobalt Review

All of your card purchases earn Membership Rewards points—5 points on every dollar, for some purchase categories. Plus, you get tons of flexibility to redeem your points, including the ability to transfer them to other loyalty programs. You also receive a solid suite of travel insurance benefits, along with complimentary automatic membership in American Express Invites and Amex Offers that gives you early access to big-event ticket purchases and more.

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American Express Cobalt

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Annual fee: $156

Rewards: 1 – 5 Points per dollar

• 5 points per $1 on dining and groceries
• 3 points per $1 on streaming services
• 2 points per $1 on travel, transit and gas
• 1 point per $1 on all other purchases

Welcome offer: earn 1,250 points for each month you spend $750, up to a maximum of 15,000 points.

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Card details

Interest rates	21.99% on purchases, 21.99% on cash advances
Income required	None specified
Credit score	725 or higher
Point value	1 Amex Membership Rewards point = $0.01 when redeemed with the Flexible Points Travel Program, $0.015 on average with the Fixed Points Travel Program, and up to $0.02 with airline points transfers.

6 things to know about the Amex Cobalt

1. The card has an impressive earn rate

At five points per dollar on purchases at grocery stores and restaurants (including cafes, bars and delivery services), you’ll be earning back big rewards on virtually everything you eat or drink. For public transit, including rideshares, gas and transit—earn two points per dollar, one point per dollar on travel booked through the Amex Online portal and one point per one dollar spent on any other purchases. In terms of earn rates, Amex Cobalt is in the top tier for travel rewards credit cards.

2. The card comes with a generous welcome bonus

You can earn 1,250 points for each month you spend $750, up to a maximum of 15,000 points. Do note, however, that you won’t receive all the points at once, which could be a drawback for those looking to redeem for a trip that is rapidly approaching.

3. You can refer a friend and get even more rewards

If you refer friends or family to this card, you can get a bonus for each approved referral—this can add up to a maximum of 75,000 Membership Rewards points.

4. The fee is charged monthly

The American Express Cobalt has an annual fee of $156, but unlike most other cards, it charges you monthly rather than annually, so it feels more manageable. As an additional draw, the card allows for up to nine free supplementary cards at no charge, so your spouse and family members can spend and earn points on the same account—a cost-effective way to boost your rewards even more.

5. It comes with great travel insurance

Travel insurance is a competitive area when it comes to credit card perks, and the American Express Cobalt makes a strong showing with its included package. Use the card to make your travel purchase and you’re automatically covered on that trip for up to $5 million in travel medical emergency insurance plus add-ons like $250,000 in travel accident protection, lost or delayed baggage, hotel/motel burglary, and flight delay coverage. The car rental collision/loss/damage waiver insurance covers you up to $85,000—more than the standard $60,000 offered by most cards. While these benefits are all valuable, cardholders need to be aware that trip cancellation/trip interruption coverage is not included, and the emergency travel medical coverage is only for people under the age of 65 and lasts for only 15 days, so it’s not suitable for older travellers or for longer trips.

6. You’ll receive American Express Invites and Amex Offers

As an American Express card, the Cobalt gets account holders automatic access to exclusive ticket-buying and money-saving opportunities. American Express Invites grants access to advance tickets or reservations to sought-after events or experiences through their Front of the Line Presale & Reserved program. Through Amex Offers, cardholders can get deep discounts and special promotions when they spend at certain retailers.

How do I redeem my American Express Membership Reward Points?

Redeeming for travel can be done in three ways, all of which have their own benefits.

1. Amex’s Flexible Points Program

Those who crave simplicity will want to look at the Flexible Points Program, which gives you a flat rate of $10 in travel credit for 1,000 points. This credit can be spent against purchases of everything from flights to hotel stays, and can be used to offset the cost of a purchase made anywhere, not just on the Amex proprietary rewards site.

2. Amex’s Fixed Points Travel Program

When redeeming through the Fixed Points Program, you use a redemption chart where there is potential to get a better rate on round-trip flights within Canada and abroad. Unlike with many other travel rewards programs, the value of your points towards your desired flight doesn’t change based on when you wish to travel, or the number of seats already booked on that flight. If you are willing to trade some flexibility for value, this may be the best option.

3. Points transfer

You can transfer Membership Rewards points to a hotel loyalty program such as Marriott Bonvoy or Hilton Honors. Those looking to bump up their hotel experience may well find that this is a smart move.

4. Purchases 

You can also redeem your Membership Rewards points for anything you can purchase on your card—everything from retail, to restaurants, to streaming services like Netflix or Amazon Prime. While this flexibility is extremely attractive, travel is where you’ll get the biggest bang for your buck.

Can I transfer American Express Cobalt points to Aeroplan?

Yes. You can transfer your Membership Rewards points to Aeroplan, as well as several other frequent flyer and loyalty programs. MR points transfer at a 1:1 ratio, too, so 1,000 Membership Rewards points = 1,000 Aeroplan points. However, you will need to transfer a minimum of 1,000 MR points to convert them to Aeroplan.

Is American Express Cobalt a charge card?

No. Some people have the misconception that all American Express Cards are charge cards. While similar in many ways to credit cards, charge cards usually don’t have a spending limit but do need to be paid off in full each billing cycle. The American Express Cobalt is a typical credit card, so if you sign up, you will be assigned a spending limit, and unpaid balances are charged interest at a conventional annual interest rate of 20.99%.

Are there any drawbacks to the American Express Cobalt?

The Cobalt has a lot going for it, but as an American Express card, it isn’t as widely accepted as Mastercard or Visa. This could be an issue if you spend a lot at certain independent retailers, restaurants or grocers. For instance, while Sobeys, Wholefoods and Longo’s accept American Express, Loblaws banner stores notably don’t. While American Express cards are still widely accepted at many merchants across Canada, it might be prudent to carry a second no-fee credit card from Mastercard or Visa as a backup.

When looking at Amex options, you’ll also want to consider the Scotiabank Gold American Express card, which offers a similar earn rate to the American Express Cobalt but, as an additional perk waives its foreign transaction fees; however, the Scotiabank offering doesn’t include access to the valuable Amex Fixed Points Travel Program. 

More on credit cards:

• The best American Express cards in Canada 2022
• Canada’s best credit cards for gas
• Canada’s best credit cards for grocery purchases 2022
• Best cash back credit cards

About Keph Senett

Keph Senett writes about personal finance through a community-building lens. She seeks to make clear and actionable knowledge available to everyone.