Q: What happened to the Optima credit card from American Express? I went to their website and can’t find it anywhere!

A: The Optima was AmEx’s very first credit card (versus their charge cards, which require payment in full each month). It was first launched in 1987 but beginning in July 2009, American Express stopped accepting new applications for it (the exception being the “Oasis” applicants, discussed below, who are still offered it). As of 2011 here are some caveats you need to know about it:

• It’s not a true Platinum Card: There are two classes – regular and platinum. Although the latter is technically called the American Express Optima Platinum, don’t confuse it with the AmEx Platinum Card which is a charge card. The Optima Platinum had no annual fee, versus the $450 fee for the Platinum Card. As you can expect, the differences in benefits between the two is like night and day.
• The rewards program: The Optima credit cards use Membership Rewards, which is a points-based program (the other AmEx charge cards also use it). It is a great program if you want to spend your points on travel, gift cards, etc. but when it comes to cash back, it’s not a good choice. Why? Because if you choose a cash or equivalent (like statement credit) the value you get is usually 50% less than choosing partner gift cards. This means if you use the Optima card for cash back, it’s like you’re only getting 1/2% rebate.
• The Optima Oasis is different: Still available, this program is for those who have burned bridges with AmEx in the past and are looking to make things right. After paying off an old debt in full, many ex-cardmembers would be invited to apply for the AmEx Optima Oasis card, which would have a credit limit up to half the amount of the charged-off balance. This program is a very targeted offer and not available to everyone. To the best of my knowledge, AmEx’s partner collection agencies (such as First Source Advantage and NCO) are the ones who are responsible for offering the Oasis program.
• Very few Optima accounts exist as of 2012: As mentioned the normal Optima card application was closed off in 2009 and since that time, many existing cardmembers have been converted to other AmEx cards. Long story short, the normal version of this credit card (not talking about the Oasis) is extinct and its probably only a matter of time before all accounts are switched to other American Express cards.

Best alternatives?

What made the Optima AmEx so attractive was that it was a no annual fee card that participated in Membership Rewards Program. As of today, all the cards that participate in this program involve an annual fee, so if you want it now you will have to pay. On the other hand, there are a number of other no annual fee cards that definitely beat the AmEx Optima Platinum anyday.

Some good current options with Membership Rewards:

Gold Card: A lot of benefits for a reasonable annual fee.
Platinum Card: This is the granddaddy, premier choice for a charge card. The $450 annual fee isn’t for everyone but if you travel a lot, it actually makes sense.

Great choices that have no annual fee:

Blue Cash: There are now two versions of this card and the cash rewards are hard to beat.
Blue Sky: For those that want a no annual fee travel rewards card with some extra perks.

American Express has really started to beef up the benefits for their Platinum and Centurion cardmembers. In spring of 2011 they expanded their airport lounge program by adding Priority Pass Select free of charge. I don’t know what’s better, that or the new $100 discount for the Global Entry program.

What is Global Entry?

In short, it’s a program run by the U.S. Customs and Border Protection (CBP) that essentially gives velvet rope treatment for qualified travelers. It allows you to skip the lines and go straight to a kiosk for entry into the US.

Currently the program is available to citizens and permanent residents of the United States, as well as Dutch citizens and Mexican nationals. Although Global Entry is geared towards frequent international travelers, anyone can apply regardless of how often (or not) they travel. As you can imagine, this program is specifically for low-risk travelers (translation: criminals need not apply).

How to apply?

There is an online application at GlobalEntry.gov and the cost is $100. If you pass the preliminary approval, you will be scheduled for an interview, where your photo will be taken and fingerprints scanned. Why fingerprints you ask? Well the kiosks that you will be using when re-entering the U.S. will require you to scan your fingerprints to confirm your identity. Your enrollment is good for five years.

How to get it for free?

If you are the primary accountholder of an American Express Platinum or Centurion, your $100 fee will be reimbursed as long as your charge it to your card. This perk along with the new $200 yearly fee reimbursement on an airline of your choice for checked bags, in-flight food, etc. have really upped the ante on the Platinum appeal. If you’re interested in learning more, I would suggest you check out this sponsored offer for CreditCardForum visitors: Learn more about the Platinum Card and take advantage of this special promotion

Q: Which American Express cards come with trip cancellation insurance? Does it mean I can cancel for any reason and get my money refunded?

A: There are a few credit cards on the market that come with trip cancellation and interruption coverage but surprisingly, none of the AmEx cards offer it. You won’t even find it on their high-end Platinum and Centurion cards.

That being said, you can buy American Express trip cancellation coverage from them for a fee, regardless of whether or not you are an AmEx cardmember. The fees and exact level of coverage vary by state. You can’t get refunded “for any reason” but there are quite a few things covered. Here’s a review of the coverage and exclusions with their Global Travel Shield insurance.

You or a Family Member are unexpectedly and seriously sick or injured

What constitutes “seriously” sick or injured? Well the phone rep I spoke to said a doctor usually has to document that you are not well enough to travel. This also echoes the feedback I have heard from forum posters regarding this type of claim.

On the other hand, if you are fine but are making the claim due to a family member’s health, the rep said “they will have to be critically ill or require you to care for them.”

Adverse weather conditions or natural disasters

I told the phone rep that the definition of “adverse weather” is definitely in the eye of the beholder, so she should explain to me what qualifies and what doesn’t.

Her response was that “adverse weather” means that your common carrier travel (plane, train, ship, etc) has to be cancelled for 24 hours or longer due to weather conditions. Coverage doesn’t apply to driving, so if you booked a hotel 500 miles away and a snow storm is preventing you from driving there, you will not be able to make a claim.

A labor dispute affecting travel services

I haven’t heard from any members who have had to make a claim under this one. As to what situations would be “labor disputes” one example would be if your airline went on strike and grounded their flights, and hence, you weren’t able to take your trip. The rep also mentioned that a bankruptcy would also fall under this category.

Your job is unexpectedly terminated

The website for AmEx trip cancellation insurance says “Please see your plan documents for a complete list of covered reasons.” Well, that’s not too helpful in my opinion, because wouldn’t people want to know the details before they buy?!

I had the rep email me the details and as expected, there is quite a bit of fine print with this one. The exclusion I was most surprised by was length of time at job. You must have been at the same job for 2 years. I specifically asked if working consecutively for 2 years at different jobs would count and she said no.

In summary, this benefit may be applicable if you are fired or laid off. But all the rules and fine print vary by state so you should call them directly to find out which circumstances would be applicable in your situation: 1-800-332-4899

Important things to remember

• You will only be reimbursed for the non-refundable portions of your trip. So if your airline ticket is non-refundable, AmEx will cover it. But if your hotel stay is refundable, then you should cancel and get the refund yourself.
• The costs vary based on the state you life, price of travel, and where you are traveling to.
• There are alternatives to paying for this American Express trip cancellation insurance. For example, after the 2% rewards, the Discover Escape card is probably best known for offering a wide array of insurance benefits, including trip cancellation/delay coverage.

This program is very popular overseas, yet I am always surprised to discover how few U.S. cardmembers even know about. In a nutshell, the American Express Selects offers a variety of exclusive opportunities for cardmembers to save money.  I will review with you what I like and dislike about the program.

Dining

As I write this review, nationwide there are 47 different restaurants in the United States with active offers available. If you live in major cities like Chicago, New York, Los Angeles and San Francisco, you will probably find some deals in your area. Speaking of Chicago, strangely enough that’s where 24 out of the 47 are located!

Here are some examples…

• For Chicagoans that just want some pizza, I actually see several deals available. One of which is at Connies Pizza. Through all of 2011 you can get 20% off any dine-in, pickup, or delivery order by using your American Express card. A pretty good deal but if you have a pizza addiction like me, I suppose that might be a drawback.
• For New York City, I see Grace’s Trattoria listed and the offer is for a $10 savings if there are 2+ people eating an entrée for lunch or dinner. That deal ran for 6 months from 12/1/10 thru 6/1/11.

What I don’t like about AmEx Selects is that it basically discriminates against everyone living outside the major cities when it comes to restaurant offers. However I did see one “normal” restaurant that is pretty big in the Midwest and that is Ruby Tuesdays…

Unfortunately American Express makes it very confusing as to which locations this particular coupon can be used at – they don’t list it under any of the cities. Under the “Locations” tab on the deal’s page, it directs you to the locator on Ruby Tuesdays’ website. I assume that means it likely could be used at all locations but don’t quote me on that.

Verdict? Great for Chicagoans and not-so-much for everyone else.

Shopping

The shopping selection is much better than the restaurant options. As I write this there are 228 American Express Selects shopping partners.

Almost every offer is for online shopping and I would consider the deals comparable to what you would find on your run-of-the-mill coupon sites. That being said, there were several that I have not seen elsewhere like…

• $5 off $50+ at Target.com
• $5 off $50+ at Kmart.com

If you used those on orders that were exactly $50, that’s a 10% savings. Then if you stacked them with what you could earn through the AmEx Bonus Points Mall, you could save even more.

Verdict: American Express Selects has a few one-of-kind offers. The rest is similar to what can be found elsewhere.

Entertainment

There were 59 current offers available. Some were very lackluster, like online discounts for booking a “Body Glove Cruise” (why a clothing company is having cruises, I have no idea). However if you are in the right location, there are some nice deals to be had. Here are a few…

As you see, there’s a lot of 2 for 1 deals and ticket discounts.

Verdict: If you happen to live or be on vacation in places the participate, these are some nice offers for sure.

Travel

We all know travel is a strong point when it comes to AmEx credit cards, so it comes as no surprise that they have a nice selection of deals for this category. And unlike the shopping deals which were mostly identical to coupon codes you will find elsewhere, the AmEx Selects US program has savings opportunities that you won’t find anywhere else.

There were 140 when I looked at here are a few random ones to give you an idea of what’s available…

Verdict: This is probably the most useful category out of all the American Express Selects offers because you get some real savings, plus many of these savings can be used by people no matter where they live in the US.

Don’t have a card or itching to get a new one? Find out how to get a whopping 6% cash back with the new Blue Cash Preferred & Everday cards

Written May 2011

The Clear from American Express was first launched back in 2005, hailing itself as the “first credit card with no fees.” At the time, that was a revolutionary concept – consumers were used to being nickel-and-dimed by credit card companies with fees under dubious circumstances (remember folks, we’re talking about the days before credit card reform).

Today in 2011, the American Express Clear card is still available but it is actually one of their least popular cards. It’s not that the customer reviews are bad for it… it’s just that the rewards on the card are nothing exciting and with no money rolling in from late fees, balance transfer fees, etc. is it any surprise that the rewards suck?

But in all fairness, it’s still a good card. After all, you can’t have your cake and eat it too! Here’s a review of the pros and cons so you can decide if it makes sense for your lifestyle:

Pros

• Obviously the biggest benefit is that you have no fees of any sort. That means no annual fee, late fee, no over-limit fees, no cash advance fees, and no balance transfer fee. The latter of which does make it useful for balance transfers but not surprisingly, American Express rarely offers 0% BT for this card since there is no BT fee.
• The Clear credit card does come with the standard benefits you get on other American Express cards such as extended warranty, return and purchase protections, car rental loss and damage insurance, and few others.

Cons

• Because there’s no money being made off fees, the interest rates tend to be a bit steep compared to other guys. As of May 2011, the rates listed on the Clear card’s application were 17.24%, 19.24% or 21.24% depending on the accountholders credit.
• I am actually deliberating whether I should list the rewards under the pros or the cons. The card does give 1% on all spending without any limits (every 2,500 points = $25 AmEx gift card automatically mailed to the account holder). But the drawback or “con” is that 1% is pretty lackluster these days, ESPECIALLY compared to AmEx’s other cards on the market.

Verdict

Ultimately I think it all depends on your lifestyle. For someone that makes late payments, uses cash advances, etc. then I could definitely see the Clear card making sense. Because if that’s you, the amount of money you pay on fees probably exceeds what even the best cash back credit cards would be giving you.

However if you are someone that consistently has good credit management habits and doesn’t encounter late fees, then what’s the point of applying for the AmEx Clear and its 1% rewards? I can’t think of any. You would be much better off with one of their others like the Blue Cash card which gives excellent rewards and has no annual fee.