American Express Cobalt Card vs. BMO CashBack World Elite Mastercard: Which Is Better?

When choosing a credit card, it’s essential to find one that aligns with your spending habits and financial objectives. Two popular options in Canada are the American Express Cobalt Card and the BMO CashBack World Elite Mastercard. Let’s delve into their features, benefits, and potential drawbacks to help you decide which card suits you best.

Annual Fees and Income Requirements

• American Express Cobalt Card: This card has a monthly fee of $12.99, totalling approximately $155.88 annually. Notably, it doesn’t specify a minimum income requirement, making it accessible to a broader audience.
• BMO CashBack World Elite Mastercard: This card carries an annual fee of $120, which is waived for the first year. However, it requires a personal income of at least $80,000 or a household income of $150,000, which may limit eligibility for some applicants.

Rewards Structure

• American Express Cobalt Card:
  • 5 points per $1 on eligible dining and food delivery purchases.
  • 3 points per $1 on eligible streaming subscriptions.
  • 2 points per $1 on eligible travel, transit, and gas purchases.
  • 1 point per $1 on all other purchases.
• These Membership Rewards points can be redeemed for travel, merchandise, or statement credits, offering flexibility in how you use your rewards.
• BMO CashBack World Elite Mastercard:
  • 5% cash back on groceries (up to $500 spent per billing cycle).
  • 4% cash back on transit, including ride-sharing and public transportation (up to $300 spent per billing cycle).
  • 3% cash back on gas and electric vehicle charging (up to $300 spent per billing cycle).
  • 2% cash back on recurring bill payments (up to $500 spent per billing cycle).
  • 1% cash back on all other purchases, with no limit.
• This structure allows cardholders to earn significant cash back on everyday expenses, especially groceries and transit.

Welcome Bonuses

• American Express Cobalt Card: New cardholders can earn up to 30,000 Membership Rewards points in the first year by earning 2,500 points each month they spend $500 on eligible purchases.
• BMO CashBack World Elite Mastercard: Offers a welcome bonus of up to 10% cash back on all purchases for the first three months, up to a maximum of $2,600 in spending. Additionally, the $120 annual fee is waived for the first year.

Additional Benefits

• American Express Cobalt Card:
  • Comprehensive travel insurance, including emergency medical coverage, trip interruption, and car rental theft and damage insurance.
  • Access to exclusive events and experiences through American Express Invites.
  • Purchase protection and extended warranty coverage.
• BMO CashBack World Elite Mastercard:
  • Travel insurance, including emergency medical coverage, trip cancellation, and trip interruption insurance.
  • Complimentary roadside assistance.
  • Access to over 1 million Wi-Fi hotspots worldwide through Boingo.
  • No foreign transaction fees, making it advantageous for international travellers.

Acceptance and Accessibility

• American Express Cobalt Card: While American Express is widely accepted at major retailers, some smaller merchants may not accept it. This limitation could affect your ability to maximize rewards in certain spending categories.
• BMO CashBack World Elite Mastercard: As a Mastercard, it enjoys broader acceptance both domestically and internationally, providing more opportunities to earn cash back on a wider range of purchases.

Which Card Is Right for You?

• Choose the American Express Cobalt Card if:
  • You frequently spend on dining, food delivery, and streaming services, allowing you to maximize the higher points per dollar in these categories.
  • You prefer flexible rewards that can be redeemed for travel, merchandise, or statement credits.
  • You value comprehensive travel insurance and exclusive access to events.
• Choose the BMO CashBack World Elite Mastercard if:
  • You prioritize cash back on everyday purchases, especially groceries and transit.
  • You meet the higher income requirements and can benefit from the first-year annual fee waiver.
  • You desire a card with no foreign transaction fees and complimentary roadside assistance.
    

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Conclusion

Both the American Express Cobalt Card and the BMO CashBack World Elite Mastercard offer valuable rewards and benefits tailored to different spending habits. Assess your spending patterns, income eligibility, and the importance of additional perks to determine which card aligns best with your financial goals.