American Express Cobalt, often touted as Canada's best credit card, is undergoing a significant change that might affect its status. Effective October 8, the earn rate for travel expenses will be reduced from two points per dollar spent to one point. Despite this reduction, Cobalt maintains its strongest feature: five points per dollar spent at restaurants, bars, and grocery stores, along with two points on gas and transit, and three points on select streaming services.
This downgrade could impact Cobalt's appeal as an all-around rewards card. The card was initially popular due to its robust rewards program, but as is common with high-reward cards, downgrades are almost inevitable. The change is seen as a move to differentiate Cobalt from the Gold Rewards card, which still offers two points per dollar spent on travel. Rewards Canada ranks the Gold Rewards card as the third best in Canada, suggesting that this change might boost its visibility.
While still a potent points earner, this downgrade has prompted some users to reconsider their options. The issue of merchants not accepting American Express remains a manageable inconvenience for many. However, for those heavily reliant on the travel rewards, the downgrade might push them to explore other credit card options. Feedback from readers and personal finance enthusiasts is encouraged to help navigate the evolving landscape of credit card rewards.
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