American Express Essential Credit Card Review

The American Express Essential Credit Card is a low-interest credit card that offers a 12.99% interest rate for purchases and cash advances, along with basic insurance such as purchase protection and extended warranty. The downside of this card is that you won’t earn points or cashback when you spend money.

30-second take

• Get this card if you want a low interest rate.

• Choose something else if you want to earn rewards or you’d like more comprehensive benefits.

• There are no minimum income requirements listed for this card.

The basics

If you want a low interest rate, then the American Express Essential Credit Card could be the right choice for you:

• Low interest rate. You’ll only have to pay 12.99% interest for purchases and cash advances (which is around 7% less than a typical credit card).
• Purchase protection. Get 90-day purchase insurance to protect the items you buy on your card against theft or physical damage (up to $1,000).
• Extended warranty protection. Automatically extend the manufacturer's warranty by up to a year for consumer goods you purchase on your card.
• Common carrier insurance. Take advantage of up to $100,000 in accident insurance when you travel on public transportation such as buses, planes, ferries and trains.

The perks

• Amex benefits. Get access to special offers for music, dining, entertainment and exclusive events offered by American Express.
• Installment payments. Choose to pay a portion of your credit card balance with monthly installments to automatically stay on top of your payments.
• Fraud protection. Rest easy knowing that you won’t be responsible for fraudulent purchases on your account with the Amex Fraud Protection Guarantee.
• 24/7 support. Call American Express at any time of day or night to troubleshoot issues with your account or request an emergency card replacement.
• Easy to qualify. You’ll need to be a resident of Canada over the age of majority in your province to qualify for this card.

What to watch out for

• Annual fee. You’ll have to pay an annual fee to maintain this card.
• No rewards or cashback. You won’t earn any rewards or cashback when you spend money on your American Express Essential Credit Card.
• No travel insurance. This card doesn’t come with any form of travel medical, trip cancellation or baggage insurance to cover you when you travel overseas.
• No additional benefits. There are no supplementary benefits such as mobile device insurance, roadside assistance or car rental insurance included with this card.
• No balance transfer offer. Unlike many low interest cards, the American Express Essential Credit Card doesn’t come with an introductory balance transfer offer.

American Express Essential Credit Card interest rates

What should I know before I apply?

Eligibility requirements

To apply for an American Express Essential Credit Card, you will need to meet the following criteria:

• Be a Canadian citizen or permanent resident who is at least 18 years old (19 in some provinces)

You will also need to provide the following documents and information:

• Your name, residential status and contact information
• Your Social Insurance Number (SIN) and date of birth
• Your email address and phone number

How to apply

1. Visit the American Express website to access the online application for the American Express Essential Credit Card.
2. Complete the application, which includes providing your name, email address, Social Insurance Number and birth date.
3. Review and submit your application.

Bottom line

The American Express Essential Credit Card is a low-interest credit card. It comes with a 12.99% interest rate and basic benefits such as purchase protection and common carrier insurance. Just be aware that this card doesn’t let you earn rewards or cashback, and you won’t get any travel insurance or airport perks when you sign up.

Frequently asked questions about the American Express Essential Credit Card

• Does the American Express Essential Credit Card come with a welcome offer?

  Unfortunately, no. This card doesn’t come with an introductory rewards or balance transfer offer to incentivize you to sign up. That said, this is likely because the rates you get with this card are already extremely low compared to typical credit cards.

• Does the same low interest rate apply to cash advances?

  Yes. You’ll only have to pay 12.99% interest on cash advances (which is around 9% less than what you would pay with other cards).

• How much can the American Express Essential Credit Card save me in interest?

  That depends on how large your outstanding balance is. You can typically save at least a hundred dollars per year in interest with the American Express Essential Credit Card for balances greater than $5,000 (when compared to typical credit cards with 19.99% interest).

• Can I apply online?

  Yes, you can apply online. Just go to the American Express website to fill out an application.