American Express Cobalt has been described in a few credit card ratings as Canada’s best.
Expect some reassessments after a downgrading of this card’s rewards. As reported on Rewards Canada, and Milesopedia, the earn rate for travel expenses will fall to one point per dollar spent on Oct. 8, down from two points.
Cobalt retains its greatest attribute – five points for every dollar spent at restaurants, bars and grocery stores, and you still get two points for spending on gas and transit. Also, the earn rate on select streaming services remains at three points per dollar spent.
But Cobalt’s usefulness as an all-around card has taken a hit. So it goes with top reward credit cards. The better their reward package, the more likely it is that you’ll see a downgrade at some point.
I signed up for a Cobalt card several years ago after the earn rate on another card I held was downgraded. Cobalt has been a powerhouse points earner for my wife and I and the issue of merchants not accepting American Express had been manageable. While travelling in the United States, I have never had to reach for another card.
For now, Cobalt remains my go-to card. But I’m considering my options and am wide open to any thoughts from readers like you about the best card reward programs. As ever, you can reach me at rcarrick@globeandmail.com.
Rewards Canada says American Express has chipped away at Cobalt to differentiate it from its Gold Rewards card, which continues to offer two points per dollar spent on travel. “The Gold Rewards Card is still one of the best cards in Canada (we rank it Number Three overall) but living in the shadow of the Cobalt Card, it required something to bring it back into the light and this change will help that happen.”
Rewards Canada described Cobalt as “the best credit card in Canada” in an e-mail newsletter last week, and CreditCardGenius calls it the best card in Canada as well.
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Rob’s personal finance reading list
$1-million in RRSPs – is that good?
A personal finance blogger looks at whether a couple can retire with a $1-million balance in their registered retirement savings plans. Kudos for coming to a useful conclusion: “Any couple in their mid-60s that has greater than $1-million portfolio value has set themselves up well for retirement even without any workplace pensions.”
Interviewing an adviser – five key questions
These questions can help separate investment salespeople from those providing true financial advice.
Managing the higher capital gains tax
As of June 25, 66.7 per cent of capital gains above $250,000 per year will be taxed. That’s up from 50 per cent, which still applies on gains up to the $250,000 threshold. In this article for advisers, a strategy for managing capital gains in the future is discussed. It’s called crystallization, which in the case of publicly traded shares means selling and then buying back right after.
A U.S. personal finance expert signed up for some premium credit cards because they offered airport lounge access. After travelling the world, she decided lounge access is overrated.
Podcast fans
Subscribe to Stress Test on Apple podcasts or Spotify.
Ask Rob
Q: I moved to the Yukon and can’t find a fee-for-service financial planner. Can you help?
A: Here is some good news for anyone working in a remote area or somewhere that does not have any financial planners who work for a flat or hourly fee rather than commissions on investment products. You may be able to find a planner in another city who will work with you remotely. You could, for example, have meetings on zoom. Here’s a national directory of planners to start your search, and a list of advice-only planners compiled by an independent mutual fund company.
Do you have a question for me? Send it my way. Sorry I can’t answer every one personally. Questions and answers are edited for length and clarity.
Tools and guides
A guide to tax debt forgiveness.
In the social sphere
Social Media: An anecdote about Costco’s generous return policy, and how people are taking advantage.
Watch: All about ‘spaving’ – spending more to save money. Example: Increasing an online order to get free shipping.
Money-Free Zone: A psychedelic rock gem called The Flume from a band that went all-in on unusual with the name Assemble Head in Sunburst Sound.
More PF from The Globe
- New 30-year mortgages are coming and the devil’s in the details
- Retirees: Is it better to invest in bonds or GICs?
- Splitting income with your spouse can save big tax dollars if done properly
Rob Carrick