Why are American Express Credit Cards So Expensive? (2024)

The main reason why Amex cards are so expensive is that many American Express credit cards offer generous rewards rates and high-end perks, which warrant steep annual fees. Amex cards are targeted toward people with good credit and high incomes who are likely to charge large amounts to their cards every month.

That being said, not all American Express cards are expensive to own. There are several $0 annual fee Amex credit cards that still offer great rewards on purchases.

Reasons Why Amex Cards Are Expensive

1. Amex credit cards are designed for high spenders

   All Amex credit card offers are aimed at people with good credit or better and lots of expendable income. According to the Amex website, American Express cardholders spend an average of 30% more per transaction than non-Amex cardholders.

2. Amex charges significant fees

   The Centurion® Card from American Express, for instance, charges cardmembers a $5000 fee every year, as well as a one-time $10,000 initiation fee. Annual fees for other Amex cards range from $0 to $695.

   See Also

   Here's What Happens When You Ask Amex to Waive Your Annual Fee

3. Amex credit cards come with luxury perks

   Depending on the card, Amex users can benefit from big initial bonus offers and generous ongoing rewards rates, as well as exclusive perks such as access to high-end airport lounges, airfare credits, and concierge services.

You can learn more and compare American Express credit card offers on WalletHub.