Review: American Express Cobalt^® Card

Our Review of the Amex Cobalt in Canada

The American Express Cobalt^® Card does not require a minimum income. That doesn’t stop it from having many advantages:

• An impressive welcome offer
• Up to 5 points per dollar in Canada
• Flexible rewards: travel, points transfer, cashback
• American Express Promotional Offers
• Travel insurance

Amex Cobalt Welcome Offer Points

The welcome bonus is split monthly for the first 12 months. You’ll earn 1,250 Membership Rewards points for every $750 in purchases charged to your card during the month (whether in the 1X, 2X, 3X or 5X category).

For the monthly welcome bonus, it’s best to make eligible purchases at stores offering 5 points per dollar:

• 1,250 points for the monthly welcome bonus
• 3,750 points for purchases in a category with 5 points per $.

That’s a minimum return of 6.7% for the first 12 months on each of your first $750 in purchases in 5-point-per-dollar categories like groceries.

Here’s how you can earn 60,000 points in your first year by optimizing your purchases in the 5 points-per-dollar categories:

60,000 points for $9,000 in purchases over 12 months, that’s a minimum return of 6.7% if you use your points for a Statement credit on any purchase. That’s a value of $600!

If you remove the cost of the card fee ($15.99 per month, or $191.88 over 12 months, outside Quebec; $191.88 per year for Quebec residents), you have a net value of approximately $408 in the first year ($600 − $191.88)!

To make this work, put your grocery, restaurant and food delivery spending on the card. On the other hand, there is no point in buying gift cards for other stores such as Amazon, SAQ, GAP or Old Navy: under the American Express Canada Membership Rewards terms, these purchases earn no points, even when they appear as purchases on your statement: buying and reloading gift cards are cash equivalent transactions.

Monthly or Annual Fee

Thus, the monthly fee for the American Express Cobalt^® Card is $15.99. For Quebec residents, the fees are $191.88 and are paid once a year, as per the law.

Earn Rewards at a Fast Pace

With the American Express Cobalt^® Card, you can earn between 1 and 5 points per dollar:

Be wary of the trick of buying gift cards (Amazon, SAQ, Netflix, etc.) at grocery stores to earn 5x the points. The American Express Canada Membership Rewards terms (section “When you will not earn points”) exclude “cash equivalent transactions”, which include purchasing and reloading gift cards, whether or not they appear as purchases on your statement. American Express can also deduct points awarded for these purchases.

5X Points on Groceries with the Amex Cobalt

With the American Express Cobalt^MD Card, you earn 5 points for every dollar spent on groceries.

For example, here is a $226.12 grocery invoice at Super C, where I earned 1,131 Membership Rewards Points:

Grocery stores also sell gift cards, but under the Membership Rewards terms, buying them earns no points. The example below is shown for historical reference.

Here, for example, is a $250 purchase of SAQ gift cards I made on my American Express Cobalt^MD Card at a Métro grocery store, right next to an SAQ Dépôt branch:

At the time, buying SAQ gift cards in grocery stores earned me 5 points per dollar for the SAQ. Under the current program terms, this type of purchase earns no points.

Convenience Stores: 1 Point per Dollar

Convenience stores are not part of the 5X tier of the American Express Cobalt^® Card. Under the American Express Canada Cobalt Card terms, the 5 points per dollar rate applies to restaurants, quick service restaurants, coffee shops and drinking establishments in Canada, stand-alone grocery stores in Canada, and food and grocery delivery.

These categories share one cap: $2,500 in net purchases per month, all combined. Beyond that, and at convenience stores such as Couche-Tard, Circle K or 7-Eleven, you earn 1 point per dollar.

5X Points at Restaurants and Bars

Also, with the American Express Cobalt^MD Card, you get 5 points per dollar at restaurants and bars.

Here, for example, is a series of restaurants, grocery stores and bars on our American Express Cobalt^MD Card:

With all these purchases, I earned 5 points per dollar!

5 Points per Dollar on Food Delivery

We’re big fans of home food delivery with platforms like Uber Eats or GoodFood! Here too, with the American Express Cobalt^MD Card, you get 5 points per dollar for home food delivery!

Here are two purchases:

• Uber Eats for $42.64 (213 Membership Rewards Points)
• GoodFood for $90.00 (450 Membership Rewards points)

There used to be an annual limit of $30,000 on purchases eligible for the 5X multiplier, which has now been changed to a limit of $2,500 per month.

Between 1 and 2 Points per Dollar Everywhere Else

With the American Express Cobalt^® Card, you earn 2 points per dollar on all your purchases:

• at service stations (Shell, Petro-Canada, etc.)
• local transport (cabs, commuter trains, etc.)

Outside of all the above categories, with the American Express Cobalt^® Card, you earn 1 point per dollar.

Flexible Membership Rewards Points!

It’s not enough to accumulate Privilege Points quickly, you also have to be able to use them.

Here are the best uses for your Membership Rewards points earned with your American Express Cobalt^® Card.

Redeem Membership Rewards Points on Travel Purchases

It’s the easiest way to use American Express Cobalt^® Card Membership Rewards points:

1. You charge a trip to your card: flights, hotels, Airbnb, car rental, etc.
2. You redeem your points on this purchase: 1,000 points = $10

Here are two examples of travel companies without loyalty program, Air Transat and Airbnb:

Redeem Membership Rewards Points on Everyday Purchases

Here, the principle is the same as for travel purchases… except that it applies to everyday purchases:

1. You buy something with your American Express Cobalt^® Card.
2. You redeem your points on this purchase: 1,000 points = $10

Redeem Membership Rewards Points through American Express Fixed Points Travel

Here, it’s simply THE best use of American Express Cobalt^® Card Membership Rewards points:

1. Connect to the American Express travel portal
2. You book some flights at fixed-points pricing: 15,000 points = $300!

But this only applies to specific flights:

Transfer Membership Rewards Points to Marriott Bonvoy

Here, it’s aimed at those who want to earn Marriott Bonvoy points towards a stay at one of the group’s 9,000+ hotels:

1. You log on to the Membership Rewards transfer portal
2. You transfer your Membership Rewards points into Marriott Bonvoy pointsat a rate of 1:1.2(or 5:6 if you prefer).
3. Book your hotel directly with your Marriott Bonvoy account

This is a great way to earn Marriott Bonvoy points, especially when you have exhausted other solutions like with Marriott Bonvoy credit cards bonuses!

That’s why we rank the American Express Cobalt^® Card alongside Marriott Bonvoy cards for earning Marriott Bonvoy points!

Transfer of Membership Rewards Points to Aeroplan, British Airways Executive Club, etc.

This is for those who want to earn Aeroplan points or Avios miles when booking flights with our partner airlines:

1. You log on to the Membership Rewards transfer portal
2. You transfer your Membership Rewards points to Aeroplan points or Avios miles at a 1:1 ratio
3. You book your flight directly via your Aeroplan or British Airways Club account

Transfer Marriott Bonvoy Points to Airline Programs

Here, you use the Marriott Bonvoy program as leverage to collect airline program miles via your American Express Cobalt^® Card

So this is for those who want to earn miles in an airline program that is not a direct American Express transfer partner with purchases made on their American Express Cobalt^® Card:

1. You log on to the Membership Rewards transfer portal
2. You transfer your Membership Rewards points into Marriott Bonvoy pointsat a rate of 1:1.2(or 5:6 if you prefer).
3. Transfer your Marriott Bonvoy points into airline miles at a rate of 3:1(or 2.4:1 when transferring in increments of 60,000 Marriott Bonvoy points).
4. You book your airline reward directly within the airline program

In short, with every purchase on your American Express Cobalt^® Card in a 5 points-per-dollar category, you earn 6 Marriott points/$ or 2 airline miles per dollar (compared with 5 miles per dollar through a direct 1:1 transfer to Aeroplan, Flying Blue or British Airways Club)!

And it can be much more than that:

• When transferring your Marriott Bonvoy points in 60,000 increments: you get 5,000 bonus miles (so 60,000 points = 25,000 miles)
• Initiating this transfer during a conversion bonus period, such as those offered 3 or 4 times a year by airline programs (25 to 35% bonus)

That’s why we think the American Express Cobalt^MD Card is one of the best credit cards in Canada!

Numerous promotions throughout the year

Throughout the year, American Express offers promotional offers to American Express Cobalt^MD Card holders.

Here are three recent examples:

Up to $95 easily accumulated, enough to offset about half of the $191.88 annual fee.

Cobalt Card Travel Insurance

With the American Express Cobalt^® Card, you’ll benefit from a number of attractive insurances, especially for a card costing $15.99 a month.

Mobile Device Insurance

You are covered for $1,000 for your mobile devices.

Rental Car Loss and Damage Insurance with the American Express Cobalt^® Card

Save when you travel with the flight and damage Insurance for rental cars included with your Card This insurance provides compensation for theft, loss and damage up to the market value of the rental car with a maximum MSRP of $85,000 depending on the year of the model.

To take advantage of this benefit, simply decline the loss/damage coverage or similar option offered by the rental company and charge the entire rental to your Card. There’s no additional charge for this coverage, and you save yourself the daily insurance fee (usually $16 to $23 per day) charged by the car rental company.

Baggage Delay Insurance

Having booked your flight with your Card, you can receive up to $500 (maximum in combination with Flight Delay Insurance) for any necessary and reasonable everyday purchases of clothing and minor items deemed essential that you make within four days, if your baggage is not returned to you within six hours of arriving at your departure flight destination.

Lost or Stolen Baggage Insurance

If you charge the full cost of your airline ticket to your Card, you are covered for loss or damage to your personal effects, carry-on baggage or checked baggage while traveling, up to a combined maximum of $500 per trip .

Flight Delay Insurance

Charge your airline tickets to your Card and receive up to $500 (maximum in combination with Baggage Delay Insurance) for reasonable and necessary hotel, motel, restaurant or incidental expenses incurred within 48 hours if your flight is delayed or you are denied boarding for four hours or more without alternate transportation.

$250,000 Travel Accident Insurance

Travel Accident Insurance provides automatic coverage of up to $250,000 for accidental death and dismemberment for you, your spouse and dependent children under age 23 when you travel on a common carrier (plane, train, boat or bus) and charge the full cost of all tickets to your Card. Supplementary Cardholders, their spouses and dependent children under 23 are also covered.

Hotel/Motel Burglary Insurance

Simply pay for your hotel or motel room with your card and you will receive coverage of up to $500 in case of loss of most personal belongings in the event of a burglary at your hotel or motel room.

Buyer’s Assurance Protection Plan

Eligible items purchased on your card may be insured for a period of 90 days from the date of purchase against accidental property damage and theft up to a maximum of $1,000 per claim (all items purchased combined).

Buyer’s Assurance^® Protection Plan

Your protection can automatically extend the original manufacturer’s warranty by up to one additional year when you charge the full amount of eligible items to your Card.

If you need to consult the insurance booklet, it can be found at this link.

The favorite of our Milesopedia community!

On March 14, 2022, we took a poll in our Facebook group.

95% of respondents clearly preferred the American Express Cobalt Card and found it worthwhile in the long run. Here’s further proof that it really is the best, both on paper and in “real life”.

Video

Our Review: Benefits of the Amex Cobalt Credit Card in Canada

The American Express Cobalt^® Card is one of our favorite cards for all the reasons mentioned above.

Every time someone asks “which credit card to sign up for” in the Facebook group, many enthusiastic members arrive to talk about the virtues of American Express Cobalt^® Card!

You would like to apply for this Card while supporting milesopedia? Click here!

Finally, with American Express becoming more cautious about accepting new applications, this is one of the first cards to add to your portfolio.

This article was not sponsored. The views and opinions expressed in this article are purely my own.

American Express is not responsible for maintaining or controlling the accuracy of the information published on this website. For full and up-to-date product information, click on the Subscription link. Terms and conditions apply.

In France, American Express cards differ.

FAQ – American Express Cobalt Card