American Express recently announced a significant change to its Membership Rewards program.
Eligible cards now have the option to use fewer points for purchases. The new redemption rate is 1,000 Membership Rewards® points for a $10 statement credit toward any eligible purchase charged to the card, up from a $7 value prior to May 31, 2021. That is a $3 increase per 1,000 points.
Typically, rewards programs that offer travel provide the best redemption value for travel-related purchases, as was the case for Membership Rewards. This is still true for programs like Scotia Rewards, BMO Rewards and CIBC Rewards. However, eligible American Express cardholders can get the same redemption rate when redeeming points toward any eligible purchase on the card, travel or otherwise, thanks to this upgrade.
Changes affect the following American Express cards:
Cardholders can redeem their Membership Rewards® points online or through the American Express® App once they have a minimum of 1,000 points.
American Express credit cards are already well-equipped with high earn rates for everyday spending and feature top-of-the-line insurance coverage and perks. The American Express CobaltTM Credit Card, for example, provides one of the best first-year values according to the RATESDOTCA Best of Finance methodology, at an estimated $1,560.
Currently, new card members can earn up to 15,000 Membership Rewards® points in the first year. This offer is subject to change at any time without notice.
If a person were to earn the complete welcome offer of 30,000 Membership Rewards® points, they would have a $300 value to spend on travel or statement credits: one of the most flexible and valuable options available today.
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