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Comparing the Visa Black Card With American Express Platinum and Centurion Cards

by Flexo on June 3, 2009

in Credit, Reviews

American Express created a frenzy among the wealthy when it decided to take advantage of rumors of an exclusive black-colored charge card, used by movie stars and music celebrities for purchasing jets and other items beyond the financial reach of us mere mortals. In 1999, American Express introduced the Centurion Card, a black charge card with no spending limits and a veritable cornucopia of exclusive benefits, all for a significant fee.

Last year, Visa saw the opportunity to market to the same demographic when this company launched its answer to the Centurion Card, the Visa Black Card which I’ve previously described in detail.

Although the assumption is that the Visa Black Card would compete with the American Express Centurion Card, it actually has more in common with the American Express Platinum Card.

Do you qualify?

If you want to hold a Centurion Card, you must be a Platinum cardholder for at least one year and you must have spent $250,000 on the card in twelve months. Both the Platinum and Centurion Cards are charge cards, not credit cards, so you are expected to pay off your entire charged balance each month.

To qualify for an American Express Platinum Card, the prevailing thought is that you will need an annual income of at least $100,000 and a high credit score in order to be approved.

Visa Black CardThe Visa Black Card is a credit card, not a charge card, offered to only 1% of the United States population. You and three million other people might qualify for this card. Some current Visa customers have received invitations or have had their existing Visa cards automatically upgraded. There have been reports of people with poor credit and little or no income being approved for this card, and an invitation package was sent to a man who had been deceased for seven years.

Annual fees

The Centurion Card is in a class of its own. When you qualify for the Centurion Card, you will be charged a $5,000 initiation fee and an annual membership fee of $2,500. That’s a total of $7,500 will will owe after the first billing period without having spent any money.

American Express PlatinumThe Visa Black Card carries an annual fee of $495 while the American Express Platinum Card requires a yearly membership payment of $450. This fee comparison makes it clear that the features of the Visa Black Card are more likely to be in line with the Platinum rather than the Centurion.

Concierge services

All three cards offer 24-hour concierge services. The purpose of a concierge is to have a personal assistant with the resources to take care of arrangements you do not have time for yourself. A good concierge should be able to order and deliver gifts to the people you specify, give dining recommendations and make reservations, even in the most popular restaurants. A concierge would be your proxy for shopping.

American Express CenturionThe Centurion Card goes further by assigning you a personal concierge, so you theoretically always deal with the same employee from the service, who gets to know you and your preferences. Additionally, the Centurion Card reportedly permits you to schedule private shopping at high end stores, such as Gucci, Neiman Marcus, and Sony.

Travel services

The Visa Black Card offers 24/7 legal, medical, and financial emergency travel services, as does the Platinum Card and the Centurion Card. All three cards offer travel accident insurance. The Visa Black Card offers up to $250,000 insurance while the Platinum Card offers $500,000 insurance. The Centurion Card offers $1,500,000 in travel accident insurance.

If your baggage is delayed while traveling, the Visa Black Card will credit you $100 a day for three days, while the Platinum Card will insure your baggage up to $2,000. The Centurion Card will insure up to $1,250 for carry-on items and $500 for each checked bag.

Purchase protection and warranties

If there is a problem with any purchase you make with the Visa Black Card, the card can reimburse the owner up to $500 before 90 days have passed since the date of purchase. The Platinum and Centurion Cards protects holders up to $10,000 per occurrence and $50,000 total per cardholder per year within the same 90 days of the purchase.

Summary

In most cases, the Visa Black Card, despite its appearance, is more competitive with the Platinum Card. Based on these benefits, the Centurion Card is in its own class despite some features in common with the Platinum Card. Many of the Visa Black Card’s services are more aligned with Visa Signature benefits, a level that usually does not carry any annual membership fees.

I’ll stick with a free Visa Signature Card, which also comes with concierge services, purchase security, and all features at levels identical to the Visa Black Card.

Review the details from the sources: Visa Black Card, American Express Platinum Card, American Express Centurion Card, Visa Signature Card.

Your opinions

With fees starting at $450, are luxury credit cards worthwhile? Have you received any offers for the Visa Black Card?

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Get a $50 or $100 Gift Card From American Express

by Flexo on October 2, 2008

in Credit

If you’re responsible with credit cards and looking for a bonus, look into the Preferred Rewards Green Card or the Preferred Rewards Gold Card from American Express. Both of these cards are charge cards, so if you use one of these cards, you must pay the balance in full every month.

With the American Express Preferred Rewards Gold Card you will receive 10,000 Membership Rewards points after spending $500 over the first three months. The points will be awarded no later than eight weeks after your first purchase and can be redeemed right away for a $100 gift card.

The Gold Card requires an annual membership fee of $125. This fee is waived for the first year, so unless you believe the American Express services are worth the cost of the annual fee, it may make sense to cancel the card before the fee is charged. That approach requires consideration of your credit score. Opening and closing a credit card in quick succession may affect your credit score, so if perfect credit is important to you, carefully evaluate your plan and decide whether the $100 is important to you.

If you choose the American Express Preferred Rewards Green Card, you have the opportunity to earn 5,000 Membership Rewards points after you spend $500 over the first three months. Those points can be redeemed for a $50 gift card or held as you accumulate more points for a larger reward.

This is not as good of a deal as the Gold Card due to the annual fee. To remain a cardholder of the Preferred Rewards Green Card, American Express will charge a $95 annual fee. This fee is not waived for the first year, but you may be able to speak to a customer service representative and ask for flexibility.

With both cards, you will accumulate one point for “virtually” every dollar you spend. Points can then be redeemed for rewards with a large number of airlines, hotels, spas, and entertainment events. The points are unlimited, so big spenders could easily recoup annual fees.

The Gold Card has an additional advantage, perhaps worth the cost of the annual membership fee if you keep the card. As a member, you have the opportunity to purchase tickets to certain events like concerts and sports before they are available to the general public.

As a holder of an Ameican Express Blue for Business Credit Card, my advice is to be very careful about scheduling your payments. If your payment is late, you will get charged a fee. After I posted a payment a few hours late, I was charged a late fee in excess of $35. I was able to have the fee waived without asking, but the finance charge stayed on my account. With a charge card, where American Express requires a full payment every month rather than a minimum payment, there might be less leeway when dealing with late payments.

Continue reading about more American Express rewards cards.

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Get a $25 Bonus With the Amex True Earnings Card

by Flexo on September 5, 2008

in Uncategorized

Costco and American Express are offering a $25 bonus in the form of a statement credit for new customers who make their first purchase using their TrueEarnings® Card.

The TrueEarnings® Card from Costco and American Express also offers significant cash back awards on most purchases, including 3% on gasoline and restaurants, 2% for travel, and 1% everywhere else. This cash back is unlimited, so you don’t have to worry about an annual cap. You’ll even earn cash back when shopping at Costco, which from what I understand already has low prices.

There is no annual fee for current members of Costco, but that’s the catch. You have to be a member of Costco to be approved for this card.

Also consider the equivalent card for businesses, the TrueEarnings® Business Card from Costco and American Express. This is a very similar card, but it does not offer the $25 statement credit with your first purchase. This card does, however, offer 5% cash back on gasoline rather than 3%. Therefore, if you plan on spending more than $1,250 on gas and if you don’t need $25 right away, the business card may be the better choice.

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