Travelers might want to take note – American Express recently announced a new credit card, the Starwood Preferred Guest (SPG) American Express Luxury Card. The card is targeted at customers who travel frequently. It isn’t cheap, however – it costs an annual fee of $450 to carry it.
What Does the Card Offer?
When the card comes out in August, it will offer a number of rewards. One of the perks is a free hotel stay on the anniversary date the cardholder started the account.
The night can cost as many as 50,000 points. It has to be at participating hotels, which includes some SPG and Marriott Rewards hotels.
In addition to the hotel stay, each cardholder will also receive a $300 credit each year, which they can spend at participating SPG and Marriott Rewards hotels. They can be used for meals, spa appointments, and to buy things in the hotel stores.
The card will offer a sign-up bonus, but it hasn’t been announced yet what it will be, MarketWatch reported. But the card will offer access to over 1,000 airport lounges worldwide, plus cover the fees for TSA PreCheck or Global Entry, which cost $85 and $100, respectively.
With each dollar cardholders spend on their credit card, they will receive six points at the SPG and Marriott hotels that participate, three points when used at U.S. restaurants and for airfare that’s booked through airlines, and two points on other items that are eligible for rewards.
Who Can Benefit From Using This Card?
The only people who will likely benefit from this card are travelers who enjoy staying at SPG and Marriott Rewards hotels. But because the APR is so high, ranging from 17.24 to 26.24 percent, it will only make sense for customers who pay their bill in full each month. Otherwise, the interest costs can start to outweigh what you’re earning in rewards.
That high interest rate is on top of the $450 annual fee the card requires. Also, if a customer is interested in earning “Platinum Elite” status, which is a notch above the “Gold Elite” status every cardholder gets, they’d better start spending. To earn that status, cardholders have to spend $75,000 annually on their card.
If cardholders don’t think they’d get enough use out of this card, there are other American Express cards that will also have new benefits beginning in August.
There is the SPG consumer card that has a $95 annual fee. It doles out six points for every dollar spent at SPG and Marriott Rewards hotels and two points for every dollar spent on other eligible purchases.
American Express also offers an SPG business card that charges a $95 annual fee and also gives six points for every dollar spent at SPG and Marriott Rewards hotels, and four points for every dollar spent at U.S. gas stations, restaurants, domestic shipping purchases, and wireless telephone services.
Author: Mike Brown
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