Here’s an in-depth review of the American Express Membership Rewards Credit Card (often referred to as MRCC or Amex MRCC in India), focusing on its features, benefits, and suitability for users:
Overview:
The American Express Membership Rewards Credit Card is an entry-level card in Amex’s Indian portfolio, targeting those who want to begin earning Membership Rewards Points (MR Points) without the high fees of premium cards. It’s particularly appealing for those looking to leverage Amex’s reward system for travel and shopping.
Key Features:
- Rewards Program:
- Base Rewards: Earn 1 MR point for every ₹50 spent on eligible transactions, excluding fuel, utilities, insurance, and cash transactions.
- Welcome Bonus: 4,000 MR points on payment of the joining fee and spending ₹15,000 within the first 90 days.
- Monthly Milestone Rewards:
- 1,000 bonus MR points on using the card 4 times on transactions of ₹1,500 or more in a calendar month.
- Additional 1,000 MR points by spending ₹20,000 or more in a month (requires one-time enrollment).
- Annual Fee:
- Joining Fee: ₹1,000 + GST.
- Renewal Fee: ₹4,500 + GST from the second year, with waivers:
- 100% waived if annual spends exceed ₹1.5 lakh.
- 50% waived if annual spends are between ₹90,000 to ₹1.49 lakh.
- Travel Benefits:
- No direct travel perks like lounge access, but points can be redeemed for travel-related rewards.
- Other Benefits:
- Redemption Options: Points can be redeemed via the 18 and 24 Karat Gold Collections for vouchers from brands like Amazon, Flipkart, Myntra, Shoppers Stop, etc.
- No Expiry on Points: As long as the card is active, points do not expire.
- Insurance: Limited compared to premium cards, includes zero lost card liability.
- Fuel Surcharge: No surcharge on fuel at HPCL pumps for transactions up to ₹5,000.
Pros:
- High Reward Rate for an Entry-Level Card: Especially with the monthly milestone rewards, it can offer substantial returns for strategic spenders.
- No Expiry on Points: Flexibility in using points over time.
- Fee Waiver: The potential for a full or partial fee waiver is a significant advantage.
Cons:
- Limited Luxury Benefits: Lacks the extensive travel and lifestyle perks of higher-tier Amex cards.
- Exclusions: No points on key categories like fuel, utilities, which can be a drawback for some.
- Acceptance: American Express’s acceptance might be limited compared to Visa or MasterCard in some places.
User Feedback:
- Positive: Users often praise the card for its rewards structure, particularly the monthly milestone bonuses making it easy to earn points. The redemption options are also well-regarded for their utility in everyday shopping.
- Negative: Some feedback includes the card’s limited acceptance and the lack of direct travel benefits like lounge access. There’s also occasional frustration with understanding which transactions earn points.
Eligibility:
- Age: You must be between 18 to 70 years old.
- Income:
- Salaried: A minimum monthly income of around ₹35,000 might be required.
- Self-Employed: An annual ITR showing income over ₹4.5 lakh.
- Credit Score: A good credit score, ideally above 700, will increase your chances of approval.
Application Process:
- Online Application:
- American Express Website: Visit the site, go to the credit cards section, and select the Membership Rewards Credit Card. Fill out the application form with your personal and financial information.
- Documents Required:
- Proof of identity (Aadhaar, PAN card)
- Address proof (utility bill, passport)
- Income proof (latest salary slips for salaried, ITR for self-employed)
- Offline Application:
- Though less common with American Express, you might find assistance or promotional offers at certain partner locations or through customer service representatives.
- Post Application:
- After submission, American Express will conduct a credit check and review your application. Approval can take a few days to a couple of weeks.
- Once approved, you’ll be sent the card, which you’ll need to activate, usually by calling customer service or through online banking.
How It Might Fit Into Your Spending Habits:
- Monthly Spending: If you can make 4 transactions of ₹1,500 or more each month, you’ll earn the additional 1,000 MR points. This strategy rewards regular, small to medium-sized purchases.
- Annual Spend for Fee Waiver:
- To waive the full annual fee, aim to spend ₹1.5 lakh annually.
- For a 50% waiver, hit between ₹90,000 to ₹1.49 lakh. This makes the card more cost-effective for moderate spenders.
- Shopping: The redemption options for vouchers are beneficial if you shop at the brands listed in the Gold Collections.
- Points Utilization: Since points don’t expire, you can accumulate them over time for bigger rewards. However, understanding the redemption value is crucial to maximizing benefits.
- Exclusions: Be aware that fuel, utilities, and insurance don’t earn points, so if these are significant parts of your spend, consider this when evaluating the card’s value.
- Acceptance: Check the acceptance of Amex where you shop or travel. If you’re in areas where Amex is less accepted, the card’s utility might be limited.
Considerations:
- Reward Maximization: Plan your purchases to hit the monthly milestones. This card rewards consistent spending rather than large, single transactions unless they contribute to the monthly spend threshold.
- Redemption Strategy: Think about how you’ll use the points. For instance, transferring to travel partners might offer more value than vouchers for some.
- Annual Fee: Evaluate if your spending can comfortably meet or exceed the waiver thresholds to avoid paying the renewal fee.
If you’re considering this card, assess your monthly spending to see if you can regularly hit the transaction count for bonus points, and whether your annual spending will justify the fee waiver. Also, consider the broader acceptance of American Express cards in your regular shopping and travel locales.
Conclusion:
The American Express Membership Rewards Credit Card is an excellent choice for those new to credit cards or looking for a simple, rewarding card to accumulate MR points. Its value is maximized by those who can utilize the monthly milestones and plan their spending to waive the annual fee. If you’re not into luxury travel perks but want to earn rewards that can be used flexibly for shopping or travel, this card offers a solid entry point into the Amex rewards ecosystem.
If you’re considering this card, pay attention to how your spending aligns with the reward structure and whether you can meet the spending thresholds for fee waivers. Also, consider how you plan to redeem the points since they offer good value when used for vouchers or transferred to travel partners.