Banks have agreements with some firms accepted throughout the world in order to market debit, credit and prepaid cards. One of these firms is American Express, also known as “AmEx”, which differs from other credit card issuers because it is also a Bank.
The advantages and disadvantages of credit cards range from being like a short-term loan, since you can increase the limit of your credit card, or on the contrary, put your credit history at risk. So what advantages and disadvantages does an American Express credit card offer? Here we will show you the pros and cons of the American Express credit card.
Why should you choose an American Express credit card?
A credit card is a very useful tool, but it must be used responsibly. When choosing which signature to use, you must take into consideration your personal finances, your needs and possibilities.
You must evaluate if you are going to use it to cover most of your purchases, if you want it to travel, if you want to pay for services online or in physical stores.
One of the greatest advantages offered by American Express is that you have access to any VIP area at any airport in the world, due to its “Priority Pass” service. Likewise, American Express offers a business credit card that provides great benefits for companies.
This is why you should evaluate your needs before applying for a credit card online with your preferred manager. Whether or not you choose to have an American Express credit card, it’s a good idea to have a credit card in case of an emergency, as it can be very useful as a backup.
Advantages and disadvantages of an American Express credit card
American Express credit cards provide many benefits, ranging from travel, dining and entertainment. One of the most attractive benefits of American Express is that it offers a 5% discount on your regular purchases and access to two airport lounges each year.
Likewise, the American Express credit card benefits you in predetermined expenses, since there is normally no limit on this type of expense. In addition, a good credit history or credit report along with time as a customer will give you the opportunity to obtain more freedom with your card. It also offers global assistance and excellent technical support in case you do not know why your credit card was canceled.
Unfortunately, American Express credit cards are not without drawbacks. American Express is not as accepted as its competitors, and it represents only 1% of the market in Spain. Likewise, the annual rates to be paid for the service usually vary, being in some cases issued for the first year or for the first two years.
In addition, despite offering global coverage, this has the disadvantage of having a commission for payment in foreign currency, that is, one other than the euro. This charge can be inconvenient if you want to use your credit card for travel. Likewise, you can present extra charges for cash withdrawal with the credit card.
What are the differences of the American Express credit card with other credit cards?
The American Express credit card has a greater disadvantage in the market compared to its direct competitors Visa and MasterCard. Well, these credit cards are more used in Spain than American Express.
However, Visa presents a considerable drawback against MasterCard and American Express. It is that despite being accepted in a greater number of establishments, it is in turn accepted in fewer countries. For its part, MasterCard is the only one that presents a prepaid card service.
Despite this, American Express is mainly considered a VIP credit card, associated with quite exclusive services and insurance for accidents, life and hospitalization. But, it also offers better services and discounts in terms of travel compared to its competition, as well as exclusivity in Renfe services and various hotels. As well as access to airport VIP lounges.