The American Express Platinum Card for Schwab has a hidden super power. Click "Show More" to see Ad Disclosure.
On the surface, it’s just like every other Amex Platinum Card: it comes with rich credit card points for travel, elite status with hotels (Marriott and Hilton) and rental cars (like Enterprise Rent A Car), airport lounge access (including the Centurion Lounge, Priority Pass, Delta SkyClub, Escape Lounge, and AirSpace Lounge networks), annual $200 credits for both Uber / Uber Eats and airline incidental charges, an annual $100 credit for Saks Fifth Avenue, and A LOT MORE!
Plus, it’s a metal credit card ;-)
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However, when it comes to cash back credit cards, Amex’s own cards that earn Membership Rewards Points (“MR points”) really do a poor job.
Most credit card points can be used for cash back in some way. The majority of the major card issuers allow you to do so at $0.01 per point (e.g. 10,000 points = $100). This is the ‘benchmark standard’ that many people use to compare the value of points when discussing cash back.
You can realize the $0.01 per point value with any of the following rewards programs / cards:
- JP Morgan Chase’s Ultimate Rewards points, including: Chase Sapphire, Chase Sapphire Preferred, Chase Sapphire Reserve, Chase Freedom, and Chase Freedom Unlimited
- Citi’s ThankYou points, including: Citi Preferred card, Citi Rewards Plus card, Citi Premier card, and Citi Prestige card. (Note, you’ll need to have the Citi Prestige card to unlock the 1¢ per point cash out rate)
- U.S. Bank’s Altitude points, including: US Bank Altitude Go card, US Bank Altitude Connect card (releasing August 2020), and US Bank Altitude Reserve card
- Wells Fargo’s Go Far Rewards points, including: Wells Fargo Propel American Express Card, Wells Fargo Visa Signature Card, and Wells Fargo Rewards Card
- BBVA’s rewards points, including: BBVA ClearPoints Credit Card and BBVA Select Credit Card
But with American Express, the Membership Rewards points can only be used for cash back (in the form of a statement credit) at a rate of $0.006 per point (e.g. 10,000 points = $60).
Amex Platinum Card for Schwab CHANGES ALL THAT!
With the Schwab version, your Amex MR points will be worth $0.0125 (e.g. 10,000 points = $125)!!
The best part is that when you have the Amex Schwab Platinum Card, it gives the 1.25x multiplier to ALL points earned across ALL cards that earn MR points.
So if you also have the Amex Gold Card, Amex Green Card, Amex Blue Business Plus Card, or any other Amex credit card that earns Membership Rewards points…ALL points earned across those cards will be pooled together in 1 account and become worth 1.25¢ each!
In fact, if you have all 4 of those Amex credit cards just mentioned, this would be your effective cash back earning rate (combining the best categories from each card):
6.25% cash back on FLIGHTS
6.25% cash back on HOTELS (Prepaid via AmexTravel.com)
5% cash back on RESTAURANTS
5% cash back on SUPERMARKETS (U.S.)
3.75% cash back on OTHER TRAVEL
3.75% cash back on TRANSIT
2.5% cash back on EVERYTHING ELSE
That’s an average cash back rate of 4.64%!
Watch the video for all the details. If you’d like to run this setup, here are the steps to follow:
1. Open a Schwab One Individual Brokerage Account
2. Connect your checking account or savings account to your new Schwab brokerage account via the online profile.
3. Apply for the American Express Platinum Card for Schwab
4. When you log into Amex.com to manage your Schwab Platinum Card, you’ll see a new feature called ‘Invest With Rewards.’ Click it to go through the process to convert your Membership Rewards points to cash. The cash will appear in your Schwab brokerage account.
5. Transfer your cash from the Schwab brokerage account to your external checking or savings account
6. Apply for any other Amex credit cards that earn Membership Rewards points. Whether they’re personal credit cards or business credit cards, they’ll all be added to the same account where points will be pooled together as 1 balance. You can then cash out your points whenever you like (minimum 1,000 points at a time) at an AMAZING RATE of 1.25¢ each!
Disclosure: This site is part of an affiliate sales network and receives compensation for sending traffic to partner sites, such as CreditCards.com. This compensation may impact how and where links appear on this site. This site does not include all financial companies or all available financial offers. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. Mark Reese is not a financial advisor.
#creditcards #amex #cashback