American Express Cobalt® Card vs CIBC Costco Mastercard: Which one is better?
American Express Cobalt® Card
5
CIBC Costco Mastercard
2.8
Rewards Breakdown
Annual Rewards
$1,096
American Express Membership Rewards
First Year Bonus
$315
American Express Membership Rewards
Annual Fee
$155.8
First Year Value
$1,255.2
$940.2 in years after
Based on $2,000/mo average spending. Calculate your rewards.
Rewards Breakdown
Annual Rewards
$347.33
First Year Bonus
$0
Annual Fee
$0
First Year Value
$347.33
Based on $2,000/mo average spending. Calculate your rewards.
Insurance Included*
Mobile Device Insurance
$1,000
Extended Warranty
Up to 1 year
Purchase Protection
90 days
Lost or Stolen Baggage
$500
Baggage Delay
$500
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Car Rental Damage & Theft
yes
Travel Accident
$250,000
Hotel Burglary Insurance
$500
Emergency Out of province Medical
15 days
Flight Delay
$500
Insurance Included
Mobile Device Insurance
$1000
Extended Warranty
Up to a year
Purchase Protection
Up to 90 days
Extra Benefits*
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Travel Credit
Book two or more consecutive nights at participating properties through The Hotel Collection with American Express Travel to receive a $100 credit for amenities or a complimentary room upgrade, if available.
Amex Experiences™
Access Front Of The Line® Amex Presale & Reserved Tickets to some of your favourite concerts and theatre performances and special offers and events curated for Cardmembers with Amex Experiences™
Extra Benefits
N/A
Interest Rates*
Purchase:
21.99%1
Cash Advance:
21.99%1
Interest Rates
Purchase:
20.75%
Cash Advance:
22.49%
Balance Transfer:
22.49%
Annual Fee*
$155.8
Annual Fee
$0
Income Required*
Min Personal Income:
N/A
Min Household Income:
N/A
Income Required
Min Personal Income:
$15,000
Min Household Income:
N/A
Welcome Bonus*
Earn 1,250 Membership Rewards® points for each monthly billing period in which you spend $750 in purchases on your Card in the first Year
Welcome Bonus
N/A
Rewards Rate*
- 5x points per $1 spent on eligible eats and drinks in Canada, including groceries and food delivery (up to 12,500 points per month)
- 3x points per $1 spent on eligible streaming subscriptions in Canada
- 2x points per $1 spent on eligible gas, transit & ride share in Canada
- 1x point per $1 spent on all other purchases
Rewards Rate
- 3% cash back on Restaurants
- 3% cash back on Costco Gas stations and 2% cash back on non-Costco Gas up to a combined maximum of $5,000 in spending (max $150 cashback per year)
- 2% cash back on Costco.ca purchases up to $8,000 in spending (max $160 cashback per year)
- 1% on everything else
Loyalty Program*
Loyalty Program
N/A
Point Redemption Options*
Most Optimal
Transfer to Airline Partners
2.1¢ / point
Fixed Point Travel Program
1.66¢ / point
Transfer to Hotel Partners
1.66¢ / point
Statement Credits (Cash)
1¢ / point
Gift Cards
0.765¢ / point
Amazon.ca
0.7¢ / point
Merchandise
0.63¢ / point
Point Redemption Options
Not Applicable
Is this card worth it?
This card was voted the Best Credit Card in Canada by FinlyWealth. The rewards earned on this card for a person with average spending exceed those of other credit cards in Canada by a huge margin! In addition, this card has a good benefits coverage, a flexible points redemption program (1:1 transfer to Aeroplan® or Avios), making it the best candidate to become the main credit card for the majority of people.
Is this card worth it?
The CIBC Costco Mastercard offers one of the highest cashback rates on restaurant purchases in Canada, making it an excellent choice for optimizing rewards in this specific category, especially since it has no annual fees. If you use Costco Gas or shop on Costco Online, there is a decent cashback rate as well. However, for other categories, the cashback rate is average. Notably, you will be better off using other credit cards for warehouse Costco purchases, as you will only earn 1% cashback. If you are looking for no annual fee credit cards only, this is a good card to go for.
Pros
- Points can be transferred to Air Canada Aeroplan® at a 1:1 ratio, making this card a solid Aeroplan® points earner as an alternative to Aeroplan® branded credit cards
- Generous welcome bonus of up to 15,000 points
- 4+ different ways of redeeming your points for great value
- 10 different types of insurance, including travel
- Often referred to as the Best Credit Card in Canada
Pros
- Decent reward rate for a no annual fee credit card
- One of the highest cashback rates for restaurant purchases in Canada
- Has Mobile insurance
Cons
- Less acceptance of American Express at different merchants across Canada
- Not all types of travel insurance are covered, especially trip cancellation and interruption insurance
Cons
- Doesn't come with a lot of benefits
- Doesn't earn much on Costco Warehouse purchases!
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American Express Cobalt® Card vs CIBC Costco Mastercard: When to go for one over the other
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.
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