American Express Cobalt® Card vs American Express Platinum Card®: Which one is better?

Annual Fees and Requirements

The American Express Cobalt Card has a significantly lower annual fee compared to the American Express Platinum Card. This makes the Cobalt Card more accessible to users who may not want to pay a premium for their credit card but still seek a valuable rewards program. In contrast, the Platinum Card’s much higher annual fee is justified by the extensive travel perks and luxury benefits it offers. Neither card has a strict minimum income requirement, which makes them both accessible based on creditworthiness rather than income levels.

Rewards Comparison

When it comes to rewards, the American Express Cobalt Card excels in everyday spending categories such as groceries, dining, and streaming services. This card is ideal for users looking to maximize their points through common, recurring purchases. The Platinum Card also earns points on purchases, but its rewards rate is less focused on everyday spending and more geared towards travel and dining. Although both cards offer a valuable signup bonus, the Platinum Card requires higher spending to unlock its larger bonus. The Cobalt Card delivers better long-term value for individuals who prioritize earning rewards on daily expenses.

Benefits and Insurance Comparison

The American Express Cobalt Card and Platinum Card offer distinctly different benefits, tailored to two types of users. The Cobalt Card shines in its rewards-earning capabilities, especially for everyday spending on dining, groceries, and subscriptions. It also offers essential insurance coverage like purchase protection, extended warranty, and basic travel accident insurance. However, its travel-related perks are not as comprehensive, and it lacks benefits like trip cancellation or interruption insurance.

The Platinum Card, on the other hand, is designed for luxury travelers who value perks over rewards. It provides unlimited access to over 1,300 airport lounges globally, automatic hotel status upgrades, annual travel and dining credits, and Nexus application fee reimbursement. The Platinum Card also includes a concierge service and priority airport services. Additionally, it has a wide range of insurance offerings, including emergency medical, trip cancellation, and trip interruption coverage. This makes it the clear choice for frequent travelers who prefer high-end perks and comprehensive protection.

Conclusion

The decision between the American Express Cobalt Card and the Platinum Card ultimately depends on your personal priorities. If you value maximizing rewards from everyday spending on groceries, dining, and entertainment, the Cobalt Card is a better fit. It offers strong rewards rates and a lower annual fee, making it ideal for people who spend primarily on routine purchases.

Conversely, if you’re a frequent traveler looking for luxurious perks, extensive travel benefits, and comprehensive insurance coverage, the Platinum Card is the superior option. Although it has a much higher annual fee, the access to premium lounges, travel credits, and hotel status upgrades make it worthwhile for those who travel often and prefer a first-class experience. In short, Cobalt is for rewards-focused individuals, while Platinum is for those who prioritize luxury travel and premium benefits.