Over $4,000 in value: Why I made the Amex Platinum my first-ever premium card

13.12.2024 - 18:21 / thepointsguy.com

Confession: I work at The Points Guy and know almost nothing about points and miles. Sure, I've flown with just about every well-known airline and stayed with nearly every mainstream hotel chain you can think of, but for the most part, I was a bargain traveler hunting for the lowest price, brand loyalty be darned.

When it came to credit cards, I had a Visa Platinum affiliated with my small credit union, but I rarely used it because it didn't earn me any points. Instead, I relied on my trusty Capital One VentureOne Rewards Credit Card for everyday purchases for one simple reason: I hate fees, and it doesn't have any.

I especially could have never imagined opening The Platinum Card® from American Express, which has a high annual fee of $695 (see rates and fees).

Surrounded by some of the most brilliant minds of points and miles at TPG, I took the opportunity to learn what I could, which led me to rethink what it means for something to have value.

Let me tell you why I now have a Platinum Amex in my wallet and how I've made it work to suit my needs.

I earned the bulk of my 160,000 points by purchasing my car. After reading about how another TPG writer bought a minivan using his Amex, the wheels started turning.

I decided to buy out my car lease at the end of its term. Given that I was in the market for a premium card anyway, I figured I could capitalize on a welcome bonus with a purchase that large. I was drawn to the Amex Platinum because I travel a lot, and it offers other incentives that appeal to me (more on that below).

Unfortunately, the dealer I was working with wasn't an Amex Auto Purchasing Program partner, but I convinced them to allow me to put a $5,000 down payment on my Amex Platinum. By doing this, I reached nearly 64% of the minimum spend requirement — $8,000 in the first six months of card membership — toward earning the 80,000-point welcome bonus.

Plus, I earned 5,000 Amex Membership Rewards points which are worth 2 cents each according to TPG's December 2024 valuations. The purchase was like getting a $100 return on my $5,000 down payment.

It's worth noting that I could have purchased the car directly through the bank that held my lease. If I had done that, it would have cost me about $1,000 less, but I also wouldn't have been able to add an extended warranty, nor would I have been able to use a card for the payment to earn points.

After meeting the spending requirement, the 100,000 points I racked up were worth about $2,000. So even though I spent an extra $1,000 by going through the dealership instead of the bank, I still came out $1,000 ahead. That alone was more than enough to offset the $695 annual fee.

Perk total: $1,100

Related: The best credit cards for purchasing a car

Bein