American express rewards program is probably one of the most popular programs with comprehensive coverage, which includes almost everything in the area of travel, entertainment, and shopping.

The program is based on bonus points where you can earn cash back rewards for every dollar you spend. You can redeem your express rewards program bonus points many different ways. It can be cash, merchandise from participating partners, air miles, a special certificate, or a hotel package.

You can transfer your reward program account points to any of 12 frequent flyer programs including US Airways, Delta Air Lines, and Continental Airlines; or to 5 frequent guest programs represented by Hilton, Priority Club, and Starwood. The merchant program partners are FTD.com, Gap, The Sharper Image, etc. Your points can be redeemed for car rental with companies such as Avis, Hertz, and Budget.

If you’d like to exchange your american express card points for cash, you can get $100 for 20,000 points.  In other words, you have to spend $20,000 to get a return of 0.5% on the amount.

The positive side is your points have no expiration date, but the negative is you will stop accruing points if you are late with your payment. However, your forfeited points can be reinstalled for the symbolic fee of $29.

If for some reason the american express points are desperately needed, you can purchase them at the rate of $25 per 1000 points.

Most credit cards participating in the membership rewards program offer no pre-set spending limit and no interest rate on the card, meaning you have to pay in full each month. The annual fee on cards such as the Platinum Card, Preferred Rewards Gold Card, and Preferred Rewards Green Card range from $45 to $450. Yes, you’ve got it right; it is a $450 annual fee on the American Express Platinum Card.

Personally, I’d never use a card with a $450 annual fee; however, for some people the perks this card offers may be irresistible. Among these are lost or damaged baggage coverage, guaranteed room reservation, 24/7 roadside assistance, and a dedicated team of travel consultants.

There are conditions for the membership, though. To enroll in the program, your card account must be in good standing and be opened in one of the American Express operation centers.

In the case of regular apr credit needed, you can be approved in less than 60 seconds for the Blue American Express with no annual fee and 0% apr for the first 12 months. After 12 months, a regular apr of 11.49%, 13.49%, 16.49%, or 18.49% will apply, depending on the review of your credit history.

The regular APRs are subject to change as they are calculated monthly by adding 6.99% - 13.99% to the prime rate, based on your credit history evaluation.

There is also an over limit fee of up to $38 and a late fee of $35 attached to the card.

My impression is that most of the cards underwritten by amex offer above average APR and fees attached to the card. The membership rewards program is attractive at first glance, but may not be as advantageous as it seems.

However, every financial situation is different and your requirements of the card may be completely different than those I’ve based my opinion on. Therefore, take the time to carefully read the terms and conditions, get more information about the membership program, and use your calculator to make sure you are taking advantage of the card, and not vice versa.