Two of the best travel cards for everyday rewards

They might be two of the most lucrative travel credit cards available today, but there’s a clear divide between the American Express® Gold Card and the Chase Sapphire Preferred® Card.

If you’re looking for great rewards on both travel and your regular spending — along with a ton of redemption value — these cards are probably already at the top of your list. Before you apply, here’s everything you need to know about both the Amex Gold and Chase Sapphire Preferred, and how to decide which one is best for your travel goals.

American Express Gold Card overview

Why we like it: With the highest rewards on dining and at supermarkets, you can easily rack up rewards at home — then cash them in for your next flight or vacation.

We also like the annual savings you’ll get to offset the annual fee. These include up to $120 in annual Uber Cash ($10 per month) when you connect your card to your Uber account, and up to $120 in annual dining statement credits ($10 per month, with enrollment) for spending at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, Milk Bar and select Shake Shack locations. Though Amex Gold does have a high $250 annual fee, these credits alone can get you a potential $240 each year.

American Express Gold Card pros

• Annual credits: With up to $240 back in Uber Cash and annual dining statement credits each year, you can nearly outpace the Amex Gold card’s annual fee before even accounting for rewards. Of course, these credits only add value if they give you money back on things you would have bought anyway. If you don’t typically use Uber for ridesharing or purchase from any of the eligible dining options, you may not get the full annual potential.

• Transfer partners: One of the best ways to use your Amex points is by transferring them to a transfer partner loyalty program. Amex has more than 20 travel partners, including Air Canada Aeroplan, Delta SkyMiles, Emirates Skywards, Marriott Bonvoy, and Hilton Honors.

American Express Gold Card cons

• High annual fee: Though it offers a lot in return, there’s no getting around the fact that Amex Gold has a steep annual fee. At $250 per year (see rates and fees), you’ll absolutely want to do the math on your spending and travel before you apply to make sure you’re getting enough out of your rewards and benefits to justify the cost.

• Getting the most from your redemptions: Unlike some other rewards programs, different Membership Rewards redemption options carry different values. If you want to make the most of your Amex Gold points, you’ll generally want to use them to book flights through Amex Travel or transfer to partners. While there are other ways to get the full 1 cent per point value, many other travel redemptions (including hotels, rental cars, and vacation packages through Amex Travel) typically redeem at a lower rate.

Chase Sapphire Preferred Card overview

Why we like it: Yes, it offers rewards in multiple categories, but we we like Chase Sapphire Preferred’s redemptions even more. If you choose to redeem your points for travel through Chase Travel, you can get a 25% boost on the value, making each point effectively worth 1.25 cents. If you have 100,000 points to redeem, for example, you can get up to $1,250 toward your next Chase Travel booking.

You’ll also get up to $50 in statement credits annually for hotels you book through Chase Travel and an annual points bonus on your account anniversary, totaling 10% of your total purchase value over the prior year — and it all comes at a $95 annual fee.

Chase Sapphire Preferred pros

• High-value redemptions: The Chase Sapphire Preferred’s 25% redemption boost when you use points to book travel through Chase Travel is one of the card’s biggest benefits — and makes the rewards points among the most valuable you’ll find. If you don’t mind booking travel through the issuer’s portal, this can be a great way to get the most out of every point you earn.

• Transfer partners: Like Amex, Chase has a long list of travel transfer partners you can redeem your points with. They include British Airways Executive Club, Flying Blue Air France KLM, JetBlue TrueBlue, United MileagePlus, Marriott Bonvoy, World of Hyatt, and more.

Chase Sapphire Preferred cons

• Lack of annual credits/benefits: While you will get up to $50 back in statement credits when you book hotel stays through Chase Travel, it’s tough to match Amex Gold’s high-value credits. Compare your own spending before you apply to make sure you’ll get enough rewards value to offset the annual fee.

• Not the highest rewards rates: This card can help you earn big rewards if your spending falls in line with rewards categories. But it does lag a bit behind the 4x rates offered by Amex Gold, as well as the wider-reaching rewards categories you’ll find on some other travel cards. Still, there’s plenty of opportunities to earn great rewards with the Sapphire Preferred.

Should you get the Amex Gold?

The Amex Gold everyday rewards categories and high-value annual credits make it one of the most rewarding travel credit cards available today — even with a higher annual fee.

To start, the 4x rewards rate on both dining at restaurants and at U.S. supermarkets (up to the annual limit) is one of the highest you’ll find among any rewards card. On top of that, the Uber Cash and dining statement credits can help you earn back nearly the entire annual fee each year. Even when you’re not traveling, these can be useful for maintaining your card’s annual value.

But when you also factor in travel rewards and credits, you can potentially far exceed the cost. This includes 3x points on airfare spending through Amex Travel or the airline, and up to $100 in experience credits for eligible Hotel Collection stays you book through Amex Travel.

One thing you should think about before getting the American Express Gold Card is how you’ll redeem your rewards. You’ll get the best Membership Rewards program redemptions when you use them to book flights through Amex Travel. There are some other high-value redemptions, but hotel and rental car redemptions, for example, generally get 0.7 cents per point value compared to a full 1 cent per point for flights.

Should you get the Chase Sapphire Preferred?

We think nearly anyone who wants major travel value for a relatively low annual fee could benefit from Chase Sapphire Preferred.

The 25% boost on redemptions may just be the best reason to choose this card, as long as you don’t mind booking your travel through the Chase Ultimate Rewards portal. And at just $95 per year, it’s not difficult to earn back the annual fee amount in rewards value even if you only travel a few times per year.

Depending on how much you spend, you can also get a significant boost with the 10% bonus on every account anniversary. For example, say you charge an average of $1,200 per month to your card, or $14,400 per year. That would make your 10% bonus worth 1,440 additional Ultimate Rewards points — on top of what you’ve already earned for the year. While that’s not a huge amount of points in itself, the amount adds up year after year.

Should you get both cards?

For most cardholders, there’s little reason to open both the American Express Gold Card and the Chase Sapphire Preferred Card. They have relatively similar reward structures, and neither offers extra benefits like lounge access, elite status, or other huge annual discounts that could justify the extra cost of owning both.

Instead, consider which of these cards makes the most sense for how you spend. Take groceries, for example — for many Americans, it’s one of the most consistently high monthly expenses. If you don’t already have a grocery rewards card but you do spend a lot of money at your local supermarket, the Amex Gold offers one of the highest rates among any rewards credit card today. But maybe you already have a card for grocery rewards, or you prefer your groceries through an online service. Then, you’ll probably get much more value from the Chase Sapphire Preferred.

How you travel can also be a big deciding factor between these cards — including which travel brands you prefer. If you always fly with Delta and you’re a Hilton Honors member, you’ll probably benefit more from Amex’s travel partners. But if, instead, you live near a United Airlines hub and World of Hyatt is your choice loyalty program, you’ll want access to the Chase Ultimate Rewards transfer partners.

With either of these cards — or any other travel rewards credit card — it’s most important to keep track of your spending and make sure you don’t overspend only to earn rewards or take advantage of benefits. These cards carry very high APRs that can lead to lasting debt balances if you can’t pay in full.

Other cards to consider

Depending on what exactly you’re looking for in a new travel card, here are a few more we like:

This article was edited by Rebecca McCracken

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