CreditVerse

The Most Overpowered Credit Card in Canada — American Express Cobalt Review

The American Express Cobalt card has been frequently referred to as the “most overpowered card” in Canada. We tend to agree, let’s find out why.

If you prefer, we also have a video discussing the card on our YouTube channel which you can check.

The card was originally introduced in 2017, becoming Canada’s first “lifestyle” credit card. Since its release, it has undergone a couple revamps, and somehow it has outdone itself each time.

Earn Rates

Here’s a quick breakdown of the card’s insane earn rates:

  • 5X: dining, grocery, and food delivery
  • 3X: streaming subscriptions
  • 2X; travel & transit
  • 1X: everything else

These earn rates are unheard of in Canadian credit cards, and makes an appealing pickup for the average spender.

Cashing Out

So, you’ve earned all these points, what can you do with them?

The most efficient use of your MR points is by redeeming for travel. You can transfer your points at a 1:1 ratio to leading industry partners like Aeroplan, British Airways Avios, and many more.

These partners give you access to the best travel experiences offered, including Singapore Airlines Business Class, British Airways Club World, and Qatar Airways QSuite.

If you need some help booking some of these flights, check out our video walking you through the most efficient way to redeem your points.

You can also reach out to us, and we’d be happy to help!

Insurance

Like any good credit card, the Cobalt card offers a great insurance suite.

Some of the coverage includes:

  • Emergency medical insurance
  • Lost/stolen baggage insurance
  • Travel accident insurance
  • Flight & baggage delay insurance
  • Hotel burglary insurance
  • Car rental insurance
  • Mobile device insurance
  • Purchase protection & extended warranty

One thing the Cobalt doesn’t offer is trip cancellation and interruption insurance. If you’re a frequent traveller, you’ve probably been in a situation where this would have come in handy. While this card is amazing, there are other cards like the American Express Platinum which offer even more perks geared towards heavy travellers.

Amex Offers

If you are an American Express cardholder, you’d be familiar with Amex Offers, which is essentially an e-coupon inventory which gives you discounts to various stores, subscriptions, and more.

In the past, offers have mostly been irrelevant to users giving discounts to shops they would never frequent, but occasionally it hits the mark. For example, a popular offer has been Disney+ which has come in handy for many. Other useful ones include Lululemon and FuboTV.

Another great thing about Amex Offers, is that if you’re lucky, the offers you receive may even amount to saving your entire annual fee making this card essentially free.

Annual Fee

Speaking of the annual fee, it once again stands out amongst its competitors by offering a monthly fee instead. Adopting a subscription-like payment plan, it may be an indication as to where the credit card industry is headed. It comes in at $12.99/month or $156/year.

Competitors

This card stands in a class of its own, and when comparing it to other cards, it seems to always win. However, we’ve compiled a few cards that offer similar earn rates and perks:

Scotiabank American Express Gold

This card also offers really strong earn rates:

  • 6X: groceries
  • 5X: dining & entertainment
  • 3X: travel & transit
  • 3X: streaming services

However, its downfall is that points are collected as Scene+ making them nowhere near as valuable or versatile as American Express MR, especially for travellers.

Aeroplan Visa Infinite

Whether it’s through TD, CIBC, or American Express, the Aeroplan Visa Infinite card lineup is a popular pick for travellers. These cards can’t outdo the Cobalt in terms of its earn rates, but it does offer unique perks for travellers, namely free checked baggage.

Verdict

So, should you get this card? Of course, the answer depends on your spending habits, travel aspirations, and much more, but overall we do believe it is the strongest credit card in Canada.

If you spend a lot of money eating out, or doing groceries, this card is probably worth it for you as there is no real competition. On the other hand, if you don’t spend a lot on these categories, or the places you frequent don’t accept Amex, there may be some better options.

If you do decide to get this card, be sure to check out your odds of approval using our StackUp tool, and if you really want to help us out, we have a referral link on the same page.

Be sure to share your thoughts on this card in the comments below, and let us know if you plan to pick up this card.