Imagine booking four return plane tickets from Toronto to Texas for your entire family — and paying absolutely nothing out of pocket. That’s exactly what happened to me, and it all came down to one credit card: the American Express Cobalt Card. Here’s my honest review and exactly how I did it.
The Bottom Line Up Front I transferred 140,000 AMEX points to Aeroplan and redeemed them for four return flights worth approximately $3,000. The total fees paid over two years: roughly $312 in monthly card fees — a net saving of over $2,600.
Points Earning Rates
The Cobalt Card earns points at a significantly higher rate than most Canadian credit cards, especially in everyday spending categories:
| Category | Points Per $1 Spent |
|---|---|
| Restaurants, food delivery & groceries | 5x points |
| Streaming services (Netflix, Spotify, etc.) | 3x points |
| Gas, transit, taxis & travel | 2x points |
| Everything else | 1x points |
If a significant portion of your monthly spending falls in the food and grocery category — which is true for most Canadian families — the earning rate of 5x points is exceptional. My one caution: AMEX is not accepted everywhere, so there are occasions you’ll need a Visa or Mastercard backup.
The Sign-Up Bonus
At various times, AMEX has offered welcome bonuses of 15,000 points or more when you spend a minimum amount (typically around $750/month) in the first few months. Sign-up bonuses change regularly, so check the current AMEX Cobalt offer before applying.
Redeeming Points: Where the Real Value Is
What sets the Cobalt Card apart from other travel cards is the flexibility of point transfers. My preferred strategy is transferring to Aeroplan, where points can unlock outstanding value on flights.
| Transfer Partner | Transfer Ratio | Best Used For |
|---|---|---|
| Aeroplan | 1:1 | Air Canada flights and partner airlines |
| Marriott Bonvoy | 5:6 | Hotels worldwide |
| Hilton Honors | 1:1 | Hotel stays |
| British Airways Avios | 1:1 | Short-haul flights |
For my family trip to Texas, I transferred 140,000 points to Aeroplan at a 1:1 ratio and redeemed them for four return tickets. I also transferred additional points to Marriott Bonvoy (at the favourable 5:6 ratio) and used 30,000 Bonvoy points to cover two hotel nights — which would have cost $150–$200 in cash.
Annual Fee
The Cobalt Card charges $12.99/month ($155.88/year) — placing it in the low-to-mid range among Canadian travel credit cards. Given the value I’ve extracted in free travel, the fee pays for itself many times over for anyone who spends regularly in the earn categories.
Foreign Transaction Fee — Important Caveat
Watch Out When Travelling
The AMEX Cobalt charges a 2.5% foreign transaction fee on all purchases made outside Canada. I do not use this card while travelling abroad. I use a separate no-foreign-transaction-fee card for international spending — such as the Scotiabank Passport Visa or the Scotiabank Gold American Express.
Other Card Benefits Worth Knowing
- Travel insurance: Includes emergency medical, trip cancellation, and flight delay coverage
- Car rental insurance: Covers collision and theft when you pay with the card
- AMEX Offers: Periodic targeted discounts at restaurants, shops, and services worth checking regularly in your AMEX account
- Purchase protection: Coverage against accidental damage or theft on new purchases
Pros and Cons Summary
| Pros | Cons |
|---|---|
| Exceptional 5x earn rate on food and groceries | 2.5% foreign transaction fee |
| Flexible point transfers to Aeroplan, Marriott and others | AMEX not accepted at all merchants |
| Moderate monthly fee ($12.99) | Sign-up bonus varies — not always the best offer |
| Strong travel and purchase insurance | Points value depends on how you redeem |
Key Takeaways
- The AMEX Cobalt earns 5x points on food and groceries — one of the best rates in Canada
- Transfer points to Aeroplan at 1:1 for excellent flight redemption value
- The $12.99/month fee is easily justified if you spend regularly in the earn categories
- Use a different no-fee card for purchases outside Canada to avoid the 2.5% foreign transaction fee
- Always verify the current sign-up bonus before applying — it changes seasonally
Kevin — Money Life Lessons
I am an Ontario teacher and personal finance enthusiast who has been using the AMEX Cobalt Card for over three years. I document my real-world financial wins and lessons at Money Life Lessons.
| Disclaimer: This blog is for general information and educational purposes only and is not financial advice nor should it be substituted as professional advice. Before taking any financial action based upon any information, you should consult with the appropriate professionals. THE USE OR RELIANCE OF ANY INFORMATION CONTAINED ON THIS SITE IS SOLELY AT YOUR OWN RISK. |
