Which Is The Better Option: American Express Cobalt Card Or Scotiabank Gold American Express Card?

The American Express Cobalt Card is the best overall credit card of 2021 with a high earn rate. If you are looking for the best bonus rewards and want to save foreign exchange fees – Scotiabank Gold American Express Card can work the best for you.  

1. American Express Cobalt Card 

The American Express Cobalt Card rewards you for your lifestyle. Yes, not only do you earn points at an accelerated rate, but some exclusive rewards.  

Initial welcome offer 

This credit card allows you to earn 2,500 Membership Rewards (MR) points every month in which you spent at least $500 on purchases.  

When added up, your cumulative benefit is 30,000 MR points in the first year you join as a new Cobalt Card member.  

Let us move forward and understand some of its several conditions and best features.  

Let us evaluate this credit card and make you aware of its various conditions and features.  

1. Eligibility 

	Eligibility Requirements
1.	You must be a resident of Canada.
2.	You must be having a valid Canadian Credit file.
3.	You are a major to get this credit card in your name. This age of majority may vary from province to province.
4.	A credit score of about 650 is usually acceptable.

2. Annual Fee  

• This credit card has an annual fee of $12.99 per month for the primary holder. The bank charges this fee in the first statement after issuing the card and once a month.  
• The total card membership fee you are supposed to pay is $155.88  
• The best part is you can get up to 9 additional cards for free. Hence, the supplementary credit card fees are $0.

3. Interest charged on the balances 

Nature of Balance	Interest Rate
Purchases	20.99%
Funds Advances (effective from the day account is opened)	21.99%

Some points related to interest worth noting are:  

• Interest rates will increase to the Standard Rate of 23.99% for the 12 billing periods if in any 12 months you have 2 separate Missed Payments*.  
• Interest rates will increase to the Basic Rate of 26.99% for the 12 billing periods if in any 12 months you have three or more separate Missed Payments.  

*The term “Missed payment” means they did not receive the minimum monthly payment by the due date.  

4. Earn Rate  

This credit card allows you to earn points on every dollar spent via your credit card: 

Eligible Purchases	Reward Points per $1
On eats and drinks From eligible restaurants and food deliveries	5X (there is a cap of $30,000 per year)
On streaming subscriptions From eligible streaming subscriptions	3X
On travel and transit For eligible getaways and ride shares	2X
On everything else It covers online shopping and more	1X

You get one point when you book eligible hotels and car rentals using your American Express Cobalt Card.  

5. Exclusive Benefit  

The AMEX Cobalt Card offers six travel-related insurance policies to its holders: 

Travel Insurance Policy	Maximum Coverage
Emergency Medical Insurance	$5,000,000
Travel Accident Insurance	$250,000
Flight and Baggage Delay Insurance	$500
Lost or Stolen Baggage Insurance	$500
Hotel/Motel Burglary Insurance	$500
Car Rental Theft and Damage Insurance	$85,000

2. Scotiabank Gold American Express Card 

The Scotiabank Gold American Express Card has significant benefits that come at a low rate. It offers redemption flexibility and allows you to redeem your earned points against any travel purchase.  

Welcome-Offer

If you get this credit card on October 31, 2022:  

• This credit card allows you to earn 40,000 bonus SCENE+ points in your first year. These points are worth $400.  

Let us move forward and understand some of its several conditions and best features: 

1. Eligibility 

	Eligibility Requirements
1.	You must be a resident of Canada.
2.	Your annual income must be at least $12,000 per year. There is no condition for any minimum household income or payment.
3.	You must be a major to get this credit card in your name. This age of majority may vary from province to province.
4.	A credit score of about 660+ is usually acceptable.

2. Annual Fee 

• This credit card has an annual fee of $120 per year for the primary holder.  
• Each supplementary card is available at $29 yearly 

3. Interest on Balances 

Nature of Balance	Interest Rate
Purchases	19.99%
Cash Advances	22.99%

4. Earn Rate 

This credit card allows you to earn points on every dollar spent via your credit card: 

Eligible Purchases	Reward Points per $1
Entertainment and Dining  1. Covers eligible entertainment – movie tickets, theatres, etc.  2. Groceries, restaurants, fast food, delivery, and even food subscriptions	5X
Travel  1. It covers eligible gas and daily transit.   2. It includes rideshare, buses, taxis, the subway, and more.  Streaming  1. Covers eligible select streaming services.	3X
On everything else	1X

5. Exclusive Benefit 

This credit card is unique as you are not required to pay any surcharge (2.5%) when you make international purchases. Only the exchange rate applies. It also offers you several travel-related insurance policies. 

• Baggage delay insurance 
• Baggage loss insurance 
• Car rental insurance 
• Flight delay insurance 
• Travel accident insurance 
• Travel emergency medical 
• Trip cancellation 
• Trip interruption 

Comparative Analysis 

Let us compare some common conditions and features. 

Parameters	American Express Cobalt Card	Scotiabank Gold American Express Card
Credit Score Required	650+	660+
Income Condition	Not Applicable	$12,000 per year
Annual Fee	$155.88	$120
Supplementary Card(s) Fee	$0	$29 per year
Interest Rate:  1. Purchases Cash 2. Advances	20.99% 21.99%	19.99% 22.99%

What do we think?

If you are looking to build your credit profile and are low on income, you can prefer opting for American Express Cobalt Card because of the absence of any income condition.  

However, if you make several foreign transactions and are looking to save a surcharge of 2.5%, you can get the Scotiabank Gold American ExpressCard.  

What is more:  

• The reward points, credit score requirement, and interest charged are similar for both credit cards and must not be a deciding factor.  
• American Express Cobalt Card offers nine supplementary credit cards at $0. So, if you have a big family, you can get impressed by this feature.  
• The annual fee charged by Scotiabank Gold American Express Card is 23% lesser.  

Evaluate your requirements and perform an analysis. Choose the card that better serves your needs. 

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