AMEX Rewards

I use my American Express as much as possible for all my purchases due to the company's excellent customer service and its Membership Rewards program. I have Optima and Blue cards which do not incur annual fees. Both of these cards generate points towards the same rewards program which is also free.

Why do I have two American Express cards? I got the Optima card years ago and then decided to get the Blue card because, simply, it looks cool. The Optima's billing cycle ends at the end of the month while the Blue ends in the middle of the month. Usually, I use my Optima card in the first half of every month and the Blue for the second half. This way each bill appears smaller when I get it. I do pay off all my credit card bills each month but seeing smaller bills somehow makes me feel better. In reality, it really makes no difference if I only use my Blue or the Optima or both.

Since I try to use my American Express for all my purchases, I have accumulated many points and redeemed various rewards over the years. Each dollar that is charged using the card(s) adds one point towards the program. The best return on reward redemptions are gift certificates for retail stores such as Banana Republic. 10,000 reward points equates to a $100 gift card which is a 1% return for dollars charged on the card(s). Most people choose to accumulate airline miles with their credit cards. After some calculations, I feel that milege points generate a return lower than 1%. It is hard to gain a consistent return on airline miles since ticket prices can swing significantly depending on booking and travelling times. In many cases, restrictions and blackout dates cost double the points or miles to obtain tickets. This will significantly lower the return to less than 0.5%. I prefer consistency, flexibility, choices, and better returns.

My latest redemption is a Denali Vest by The North Face which retails for $125. As with all products redeemed via American Express, the 14,000 points I used for the vest includes shipping fees. Shipping and handling fees usually cost around $5. This makes the vest redemption a pretty decent return of 0.93% return which is almost as good as retail gift certificates. With fall around the corner, this vest will sure come in handy and it is FREE!