Is it better to obtain the Amex Platinum card or become an authorized user? – The Points Guy

A highly favored premium credit card isThe American Express Platinum Card®Although it comes with a significant annual fee (refer to rates and fees), it can provide substantial value for the appropriate type of traveler.

The fee for each extra Platinum cardmember added to your account is $195 (refer to rates and fees). However, these additional cardmembers might be wondering: Should I remain an authorized user or obtain my own Platinum Card?

Here’s some advice to assist you in making that decision.

Summary of Amex Platinum costs

The yearly payment for theAmex PlatinumThe cost is $695 (refer to rates and fees), and an additional $195 per year will be charged for each authorized user added to the account.

It’s essential to compare the expenses of having your own Amex Platinum card versus being an authorized user on another person’s account. Therefore, you might want to calculate the costs to determine the more economical option.

When is the right time to obtain your Amex Platinum card?

There are multiple reasons to support having your ownAmex PlatinumAs expected, they begin with a welcome offer.

As an authorized user, you won’t be eligible for the welcome offer. However, if you apply for and are approved as the primary cardholder of the Platinum Card, you can earn 80,000 Membership Rewards points after spending $8,000 on eligible purchases within the first six months of card membership. According to TPG’s June 2024 valuations, this bonus is valued at $1,600 due to the numerous valuable ways to utilize Amex points.

(Pro tip: Make sure to review the CardMatch tool to find out if you’re eligible for a higher welcome offer, but keep in mind that these offers can change at any moment.)

Nevertheless, the introductory offer is available only during the first year. Additionally, several key benefits of the Amex Platinum are provided just once per account. If you can fully utilize any of the benefits listed below, you might be a suitable candidate for obtaining your own Platinum Card:

• Monthly Uber Credit:* By adding your Amex Platinum card as a payment method to your Uber account, you can receive up to $15 in monthly Uber Cash. Additionally, you’ll get a $20 bonus in December. This credit can be used for Uber rides and Uber Eats orders within the U.S. For even occasional Uber users, this benefit can offer up to $200 in annual value.
• Digital entertainment credit: The Amex Platinum offers up to $20 in statement credits monthly when used for subscriptions to specific digital entertainment services like Disney+ and The New York Times. Fully utilizing these credits can provide a total annual value of $240.
• Receive statement credit:* If you use your Amex Platinum to pay for a Clear Plus membership, you can get up to $189 in annual statement credits.
• Hotel statement credit: As a holder of the Amex Platinum card, you can utilize luxury hotel benefits via Fine Hotels + Resorts and The Hotel Collection (which necessitates a minimum stay of two nights). When you book a prepaid reservation at a qualifying property within these programs, you’ll receive up to $200 in statement credits annually.
• Airline statement credit: The Amex Platinum card offers up to $200 in annual statement credits for incidental fees charged to your designated airline. This credit can be used for expenses such as baggage fees, seat assignments, or guest passes for airline lounge visits.

*You need to enroll to access these benefits.

As an authorized user, your spending can activate these benefits for the main Platinum Card account, but you won’t receive your own set of perks as an additional Platinum cardholder. You would only get these benefits if you were to open your own Amex Platinum account.

Assign a specific monetary value to these advantages according to your anticipated usage over the coming year. If this amount exceeds $500, you are likely a strong candidate for obtaining your own Platinum Card.

Considering the welcome offer and the available statement credits — some of which permit you to receive double benefits in the first year — now might be an excellent opportunity to become a primary cardholder (instead of just an authorized user) of the Amex Platinum.

Discover: 10 activities to explore once you receive the Amex Platinum.

When you should be an authorized user

Several scenarios may make being an authorized user more advantageous.

If you’re under 18, your sole viable option is to become an additional Platinum cardholder. And even when you reach 18, theAmex PlatinumThere are stringent requirements that must be met for approval. Recent high school graduates with minimal credit histories will probably need to be authorized users for several years and establish their own credit rating before contemplating obtaining the Amex Platinum on their own.

Besides that, remaining (or becoming) an authorized user is probably most sensible for individuals who greatly appreciate the additional perks provided to extra Platinum cardholders — but are less concerned about the previously mentioned benefits. The American Express Global Lounge Collection access, the statement credit for Global Entry or TSA PreCheck, and complimentary Gold status with Marriott Bonvoy and Hilton Honors are all available to authorized users. For frequent lounge patrons or consistent Marriott and Hilton guests, paying $195 annually might still be a good deal. Enrollment is required for select benefits.

If you’re unsure about this decision, calculate the value by assigning specific dollar amounts to these benefits. For instance, consider how much you would be willing to pay to access an Amex Centurion Lounge. Entry for guests of the primary Platinum cardholder costs $50 (unless they gain guest privileges by spending $75,000 on the card within a year). If you agree with this valuation, you can easily offset the $195 annual fee for authorized users with just four visits (or more).

Related: Is the American Express Platinum card worth its annual fee?

When both options seem illogical

Certainly! Here is the reworded text:

“Naturally, for some clients, neither of these options may be suitable. Perhaps you previously had the…”Amex PlatinumConsequently, you do not qualify for a welcome offer. Maybe you visit airport lounges only occasionally or take advantage of hotel elite status benefits rarely.

Recalculate the figures based on the actual yearly value derived from the included benefits. If the calculated value is less than $195, it would be more advantageous to cancel your authorized user card.

Bottom line

The American Express Platinum CardThe charge for authorized users is $195, and while some individuals might think about removing extra Platinum cards from their accounts, others might want to evaluate when it is advantageous to become a primary cardholder.

Begin by examining the welcome offer, particularly if you have been selected for a special elevated offer. Next, calculate the worth of the additional benefits you’ll gain with your own Amex Platinum Card, considering that some perks are tied to the calendar year.

For additional information about the card, please read our comprehensive review of the Amex Platinum.

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Apply here: Amex Platinum

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To view the rates and fees for the Amex Platinum, please click here.