3 Steps to Take Before Applying for the Amex Platinum Card

If you’ve been looking for a rewards card with a lot of features, the Platinum Card® from American Express fits that description. It has all sorts of benefits, including over $1,500 in annual spending credits. Terms and conditions apply. It’s also expensive, even compared to other top-tier card options, with an annual fee of $695 (see below). rates and fees).

This is a popular card and people often look forward to receiving it. There are a few important things you need to do before you apply.

1. Make sure you can take advantage of the benefits

You should only pay the annual fee for the card if you get your money’s worth. With this American Express card, that means you save over $695 every year with it to balance out the annual fee. And it probably only makes sense if it saves you at least $1,000.

This may seem simple at first. With so many advantages, how are you not going to come out ahead? First, review these benefits and consider how well they fit your lifestyle. The main disadvantage of this card is that its benefits can be difficult to take advantage of. Take those spending credits mentioned earlier. They include:

• $200 in annual Uber Cash (you get $15 per month and $35 in December)
• $240 in annual digital entertainment credits ($20 per month for qualifying purchases from eligible providers)
• $200 in annual airline fee credits
• $300 in annual Equinox credits
• $100 in annual Saks credits ($50 January through June and $50 July through December)
• Terms apply; registration may be required

If you can leverage all of this, you’ll already be getting a lot of value. But not everyone goes to Equinox, shops at Saks, and takes Uber. The only way to make sure this card is right is to look at what it offers you.

2. Check your credit score

Your credit score will largely determine whether you will be approved for this card. The general recommendation is to only apply if you have a FICO® Score of 670 or higher. This is a guide for many travel rewards cards, including this one.

It is quite possible to get approved with a lower score. I’ve found reports online of people getting this card with scores below 640. But a high credit score usually helps.

If you’re not sure what your credit score is, there are free tools you can use online. Be sure to use one that has your FICO® Score, which is what lenders typically check. Experian CreditWorks is a free option that allows you to get your FICO® score.

3. Pay off credit card debt

If you have credit card debt, it is not recommended to apply for this card. Credit card debt is a serious problem that can cost you quite a lot in interest. According to the Federal Reserve, the average credit card interest rate is 21.51%. On a $10,000 balance, that would mean about $2,150 in annual interest.

Getting this American Express card simply means more management, plus a $695 annual fee. The Platinum Card® from American Express is also designed to pay in full every month. If you are unable to pay the entire balance, this may cause problems with your account.

You’re better off focusing on getting rid of your credit card debt. Once you do this, you can apply for an American Express card. As an added bonus, paying off your credit card balances can improve your credit score.

Applying for the Platinum Card® from American Express is exciting. If you’re confident you can take advantage of its benefits, have verified that your credit score is 670 or higher, and have no credit card debt, you can feel confident that you’re ready to apply.