Amex preferred rewards gold card worth it?

Verylucky2022

For the last few years my wife and I have largely used our Amex Platinum Cashback credit cards for everyday spending this has an annual £25 fee and we pay the balance off in full every month without question. The result is usually around £250 to £300 back annually from Amex from spending between £1200 and £2000 a month. Recently they have been advertising the preferred rewards gold card with an opening bonus of 20000 rewards points when you spend £3000 within the first month. I understand how the rewards points can be redeemed but am unsure how much each is worth and if this would be a more rewarding way to go? This card does have a much higher fee of £195 a year.

Verylucky2022

Verylucky2022 said:

For the last few years my wife and I have largely used our Amex Platinum Cashback credit cards for everyday spending this has an annual £25 fee and we pay the balance off in full every month without question. The result is usually around £250 to £300 back annually from Amex from spending between £1200 and £2000 a month. Recently they have been advertising the preferred rewards gold card with an opening bonus of 20000 rewards points when you spend £3000 within the first month. I understand how the rewards points can be redeemed but am unsure how much each is worth and if this would be a more rewarding way to go? This card does have a much higher fee of £195 a year.

Sorry spending £3000 within the first two months.

DullGreyGuy

Verylucky2022 said:

For the last few years my wife and I have largely used our Amex Platinum Cashback credit cards for everyday spending this has an annual £25 fee and we pay the balance off in full every month without question. The result is usually around £250 to £300 back annually from Amex from spending between £1200 and £2000 a month. Recently they have been advertising the preferred rewards gold card with an opening bonus of 20000 rewards points when you spend £3000 within the first month. I understand how the rewards points can be redeemed but am unsure how much each is worth and if this would be a more rewarding way to go? This card does have a much higher fee of £195 a year.

The card is free in the first year and some downgrade it to a free card in year 2 to avoid the fees. 

It ultimately depends on what you will use the points for and how you choose to value them and if you put any value on the other aspects like 4 airport lounge passes or £10/month on deliveroo.

You will generally get best value from converting them to air miles and using them to book higher class travel but putting an actual value is still hard. For example to fly to Milan in a couple of weeks with 1 suitcase on BA is £334 economy or £757 business and EasyJet are £256 but to fly Business with Avios would be £25 + 32,500 miles. 

So how much have you earned per point (one MR = one Avios)? If you think you'd have only flown EasyJet had it not been for the points then you've gotten 0.7p per point which isnt great, if you compare it to BA economy then its 1p per point whereas BA Club is 2.3p but can you really claim 2.3p if you'd never have booked business class were it not for the points?

Personally dont over think it, I think there is some value in flying business even if you wouldnt have paid cash for it so it's probably somewhere between the two. Personal best was getting a first class flight for us$5 which would have been over £10k cash.