American Express Cobalt® Card vs CIBC Costco Mastercard: Which one is better?

Annual Fees and Requirements

The American Express Cobalt Card has an annual fee, which might be a consideration for those who prefer a no-fee card. In contrast, the CIBC Costco Mastercard comes with no annual fee, making it more accessible for budget-conscious consumers. Additionally, the CIBC Costco Mastercard requires a minimum personal income, whereas the Amex Cobalt Card has no such stated income requirement, making it more flexible for those with varying income levels.

Rewards

The American Express Cobalt Card offers significantly higher rewards across various categories such as dining, groceries, and travel. This makes it highly lucrative for those who spend frequently in these areas. On the other hand, the CIBC Costco Mastercard provides modest cashback, particularly on restaurant purchases and Costco-specific spending, but does not offer a sign-up bonus like the Amex Cobalt.

Reward Redemption Options

The American Express Cobalt Card offers a variety of redemption options, including travel, point transfers to airline and hotel partners, and statement credits. While these options provide flexibility, they require strategic use to maximize value. In contrast, the CIBC Costco Mastercard offers straightforward cashback, which is more flexible and can be used on anything, making it a more practical choice for those who prefer the simplicity and versatility of cash rewards over points.

Benefits and Insurance

The Amex Cobalt Card provides extensive insurance coverage, including travel insurance, purchase protection, and extended warranty, among others. It also offers unique perks such as access to American Express Experiences. The CIBC Costco Mastercard includes basic insurance like mobile device coverage and purchase protection but lacks the extensive benefits offered by the Amex Cobalt.

Network and Acceptance

The American Express Cobalt Card operates on the Amex network, which is less widely accepted than the Mastercard network. The CIBC Costco Mastercard, being a Mastercard, is accepted at more locations, including Costco warehouses, where Amex is not accepted.

Conclusion

For those who prioritize high rewards, extensive benefits, and flexible redemption options, the American Express Cobalt Card is the superior choice, especially for frequent diners and travelers. However, the CIBC Costco Mastercard is ideal for individuals who prefer a no-fee card with decent cashback on dining and Costco purchases, especially if they frequently shop at Costco or require a card with broader acceptance.