A Points Card With a Long Purchase Intro APR
Credit Needed: Good/Excellent
The The Amex EveryDay Credit Card from American Express offers competitive rewards and favorable terms, particularly for a card that doesn’t charge an annual fee.
If you use the card to make $1,000 in purchases during your first three months as a cardholder, you’ll earn 10,000 points as a welcome bonus. But the opportunity to earn bonus points doesn’t end after your first three months with the card. In any given billing period, if you use your card to make 20 or more purchases you’ll earn 20% more Membership Rewards points. Terms may apply.
What about your APR on these purchases if you can’t pay your bill in full at the end of a billing period? Well, for your first 15 months as a cardholder you’ll get an introductory 0% APR. After the introductory term, an APR of 12.99% - 23.99% Variable will apply.
10,000-points – When you sign up for The Amex EveryDay Credit Card from American Express and spend $1,000 within your first three months as a cardholder you’ll earn a 10,000 point welcome bonus.
2 points for every dollar spent at the supermarket – When you swipe your card at U.S. supermarkets, you’ll earn double the points. The points are capped at $6,000 for the year, so you’ll only earn double points on your first $6,000. After that, you’ll earn points at the normal rate of one point per dollar spent.
20% bonus when you make 20+ purchases in a billing period– If you’re a frequent shopper you’re in luck. Amex wants to reward people who swipe their cards regularly. If you hit the 20-transaction mark in a given billing period, you’ll earn 20% more points on those purchases less returns and credits. Terms and limitations may apply.
0% introductory APR – The Amex EveryDay Credit Card comes with a 0% introductory APR for your first 15 months after approval. On your purchases, you won’t rack up interest for a full 15 months. After the introductory period expires, the ongoing APR will be 12.99% - 23.99% Variable depending on credit-worthiness.
No annual fee – You don’t have to pay for Amex EveryDay Credit Card perks like bonus points. That’s right – the Amex EveryDay Credit Card doesn’t come with an annual fee.
Who It Benefits
What kind of consumer would be well served by the Amex EveryDay Credit Card? Those who make frequent purchases each month and spend heavily at the supermarket stand to benefit from the card’s rewards. For example, a parent who makes frequent trips to the supermarket in the U.S. to stock the family fridge could be a good candidate for the Amex EveryDay Credit Card.
How It Works
Your three-month timeline for qualifying for the 10,000 bonus points starts as soon as you’re approved for the card, not when you receive the card in the mail. So if you’re determined to earn those points, err on the side of caution and frontload the $1,000 in spending that you need to qualify for the welcome bonus offer. If you hit the target, your 10,000 points will be credited to your Membership Rewards account six - eight weeks after you reach the $1,000 mark.
To qualify for the 20% extra points benefit you must make 20 or more separate purchases of goods or services on your card in a single billing period. Buying multiple items in one transaction still counts as a single purchase. Banking fees and charges, such as for cash advances, don’t count as a purchase. Buying cash equivalents like traveler's checks or prepaid cards doesn’t count, either. You can track your purchases in the Amex app so you know when you’re getting close to the 20-purchase milestone.
You’ll earn two points for every dollar charged at U.S. supermarkets, up to your first $6,000 in eligible purchases in a calendar year. Warehouse clubs like Costco are not considered eligible stores, and purchases of things like prepaid cards are also ineligible. After you hit the $6,000 threshold on grocery spending at supermarkets in the U.S., you’ll earn points at the normal rate of one point per dollar.
What's The Catch
Often, cards that offer rewards points require that customers pay an annual fee. The Amex EveryDay Credit Card doesn’t have that catch. It does, however, come with some fees and penalties that can add up for the unwary consumer.
The card comes with a penalty APR of 29.24% variable. This is a variable rate that can change with fluctuations in the Prime Rate. The penalty rate kicks in if you make one or more late payments or make a payment that is returned.
Once the penalty APR kicks in, it will apply for at least six months. Once six months have passed, American Express will review your account. You’ll be eligible to return to your normal APR after you have made on-time payments (with no returned payments) during a six-month period. If your income tends to fluctuate and you’ve missed credit card payments in the past, you might be better off with a card that doesn’t charge a penalty APR.
Just The Math Please
If you spend $1,000 in your first three months with the card, you’ll earn a welcome bonus in the form of 10,000 bonus points. You’ll also earn two points for every dollar you spend at supermarkets in the U.S., up to your first $6,000 in a given year. You’ll earn one point per dollar on all other purchases.
Rates And Fees
Annual Percentage Rate (APR) for Purchases
Receive 0% for 15 months on purchases. Afterward, your APR will be at a rate of 12.99% - 23.99% Variable. This rate is based on credit-worthiness and will vary with the market based on the Prime Rate.
APR for Balance Transfers
Balance Transfers are not available at this time.
APR for Cash Advances
The APR for cash advances is 25.24% Variable.
Penalty APR and When It Applies
There is a penalty APR of 29.24% Variable. The Penalty APR applies if you make one or more late payments or make a payment that is returned.
How to Avoid Paying Interest on Purchases
Your due date is at least 25 days after the close of each billing period. If you pay your entire balance by each month’s due date you will not accrue interest charges.
Balance Transfer: Balance Transfers are not available at this time.
Cash Advance: Either $10 or 5% of each cash advance, whichever is greater.
Foreign Purchase Transaction: 2.7% of each transaction after conversion to US dollars.
Late Payment: Up to $40
Returned Payment: Up to $40
How It Stacks Up
The natural point of comparison for the Amex EveryDay Credit Card is the Amex EveryDay Preferred Credit Card. The Amex EveryDay Preferred Credit Card charges an annual fee of $95 but offers 15,000 bonus points compared to the 10,000 you get with the Amex EveryDay Credit Card when you spend $1,000 in your first three months with the card.
The Amex EveryDay Preferred Credit Card offers 3x points at U.S. supermarkets, compared to 2x points with the Amex EveryDay Card, and includes a gas rewards rate of two points per dollar at U.S. gas stations. The Amex Everyday Preferred card offers a 50% extra points after 30+ transactions (fewer credits and returns) in a billing period, compared to the 20% bonus after 20+ transactions with the Amex EveryDay Card.
If you don’t consistently spend a lot on gas and you’re wary of annual-fee cards, you might want to stick with the Amex EveryDay Card and track your spending for a year. You can always upgrade to the preferred version if you find that your spending patterns would enable you to take advantage of the higher rewards and offset the annual fee.
Do you feel like you’re always making trips to the supermarket for one thing or another? Would you love to get points for your spending without having to pay an annual fee? If you answered yes to these questions, the Amex EveryDay Card could be a good fit for your needs.
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