Navigating the American Express Four Credit Card Limit

In Canada, American Express credit cards reign supreme when it comes to helping you travel the world in style, given the valuable Membership Rewards points, juicy welcome bonuses, excellent earning rates, and lucrative cardholder features.

As you build a portfolio of credit cards to fulfill your needs and goals, one important consideration to keep in mind is that there are certain limitations on the number of different American Express products you can hold concurrently.

In particular, while there’s no limit to the number of American Express charge cards you can hold, you are in fact limited to having four credit cards at any given time.

Since there’s quite a handful of American Express credit cards that are worth your attention, you’ll have to think carefully about which quartet of American Express credit cards you’re most interested in, which is exactly what we’ll explore in this guide.

American Express Charge Cards and Credit Cards: What’s the Difference?

American Express is the only major credit card issuer in Canada to offer charge cards in addition to credit cards. 

As you’re building an American Express credit card portfolio, it’s imperative to understand the differences between charge cards and credit cards:

• Charge cards don’t come with a pre-determined credit limit, although you must pay off the balance in full every month
• Credit cards come with a credit limit and allow you to make minimum monthly payments and carry a balance (not that that’s ever a good idea)

In Canada, you can hold an unlimited amount of charge cards, which means that you can concurrently have the American Express Platinum Card, the Business Platinum Card from American Express, the American Express Business Gold Rewards Card, and the American Express Aeroplan Card without worrying about running into card limits.

However, you’re limited to having four open credit cards at any given time, which makes things more interesting in terms of strategizing around American Express’s revolving credit products.

The following American Express credit cards are generally considered to be the most powerful for elevating your travel (as you can see, there’s already more than four):

Meanwhile, the following products might also appeal to those who’d prefer more low-maintenance points strategies, or even cash back:

However, it’s worth noting that these are generally less useful products in the overall Amex lineup. If you’re looking to elevate your travel, you’ll want to consider the cards in the list above for the best outcomes.

Which Four American Express Credit Cards Should You Consider?

To decide on the best strategy, we’ll need to trim down our list of American Express’s six best travel credit cards (i.e., the first set of six credit cards listed above) down to four.

It’s worth noting that not everyone will consider holding up to four (or more) credit cards, since everyone’s travel needs and goals are different. However, you may find that building up a credit card portfolio is worthwhile for the following reasons:

• Maximizing your return on daily spending by leveraging category multipliers
• Some cards provide outsized value year after year through cardholder benefits
• Some cards offer travel perks, such as lounge access, or airline-specific considerations
• Taking advantage of a record-high welcome bonus when it comes around

With these in mind, let’s explore some options for building up your American Express card portfolio.

Slot #1

Without a doubt, the American Express Cobalt Card should be among your first picks for an American Express credit card, due to its supercharged earning rates on many common expenses:

• 5 Membership Rewards points per dollar spent on food and drink (grocery stores, restaurants, food delivery, and bars)
• 3 Membership Rewards points per dollar spent on streaming services
• 2 Membership Rewards points per dollar spent on gas, transit, and rideshare
• 1 Membership Rewards points per dollar spent on everything else

Indeed, with the ability to earn 5 Membership Rewards points per dollar spent on food and drinks, the American Express Cobalt Card is a trusty points-generating machine and a core component of any optimal points strategy.

That’s especially the case since MR points can be transferred 1:1 to Aeroplan and British Airways Executive Club, and 1:0.75 to Air France KLM Flying Blue, Cathay Pacific Asia Miles, and Delta SkyMiles, to fund high-value flight redemptions.

With these transfer partners, you have access to airlines in all three major alliances (Air Canada: Star Alliance, British Airways: oneworld, and Air France KLM: SkyTeam), as well as a number of independent airlines. 

The American Express Cobalt Card is an excellent credit card to have for padding your points balance and getting the most out of your daily spending. 

Slot #2 (and maybe Slot #3, too)

With the Cobalt Card taking care of maximizing your return on daily spending, your next consideration may be to venture into the world of hotel rewards. In Canada, the most accessible program is Marriott Bonvoy, and American Express offers both a co-branded personal and business credit card.

Of course, if chain hotels aren’t a part of your travel goals, then you can simply skip any consideration of the two Marriott Bonvoy co-branded cards, and there’s no further worry. You can replace them with cards in the Aeroplan and Membership Rewards families.

But for most travellers who are looking to maximize their credit card points and benefits, the Marriott Bonvoy American Express Card and/or the Marriott Bonvoy Business American Express Card could play a fairly significant role.

Aside from the welcome bonus, both cards offer an annual Free Night Award worth 35,000 Marriott Bonvoy points and 15 elite qualifying nights. 

In fact, the Free Night Award alone could easily offset either (or both) of the cards’ annual fees ($120 for the personal card, $150 for the business card), since it can be easily redeemed for hotel stays worth $300 or more.

If you redeem the Free Night Award strategically, that figure could be even higher, which makes a very strong case for holding on to one or both of these cards year after year.

Slots #3 and #4

With one or two final slots left, here’s where the strategy branches out a little, depending on your specific travel needs and goals.

If you’re heavily invested in Aeroplan and fly often with Air Canada, then the American Express Aeroplan Reserve Card makes a lot of sense to hold in the long run, even with its $599 annual fee.

The card has seen very frequent Amex Offers that effectively reduce the annual fee, all while carrying some excellent benefits like unlimited Maple Leaf Lounge access, Air Canada priority services, and extended validity of eUpgrades and rollover of unused Status Qualifying Miles.

Plus, the card offers the highest earning rate on Air Canada spending in Canada at 3 Aeroplan points per dollar spent, which offers an excellent return on flight spend (with solid insurance coverage to boot). 

And, by spending $25,000 on the card every year, you’d earn an Air Canada annual worldwide companion pass, which can be leveraged to score a significant discount on flights if used strategically.

It’s worth noting that the Aeroplan Visa Infinite Privilege cards by TD and CIBC could play the same role; however, their $150,000 personal minimum income requirement can be prohibitive.

Alternatively, you could consider the American Express Aeroplan Business Reserve Card, as the two products are very similar. In most cases, it doesn’t make sense to have both, since you’d have to pay two $599 annual fees here for largely overlapping benefits.

(If you’re looking for a strong Amex card for your business, look no further than the Business Platinum Card from American Express. It’s a charge card, so it doesn’t count towards your four-card limit, and it offers an excellent suite of perks and benefits in addition to what’s typically the highest welcome bonus in Canada).

Depending on your approach, at this point you may have filled all four credit card slots or you may have one left.

Ideally, you’d be able to fill the fourth slot with a card that’s offering an excellent welcome bonus at the time, since it’s a one-time opportunity to quickly boost your balance. 

Of the remaining cards, you’re basically left with the American Express Gold Rewards Card if you still have a spot open.

This card could be a good fit for you if you don’t travel frequently enough to need unlimited lounge access (as you’d get with the American Express Platinum Card), but still want to enjoy some elevated perks when you do.

The card has a solid earning rate for travel purchases (2 Membership Rewards points per dollar spent), a $100 annual travel credit, and four complimentary visits to Plaza Premium lounges each year. 

What About Two-Player Mode?

If you’re engaging with the world of Miles & Points alongside someone else, then there’s much more leeway for expanding your strategy beyond what we’ve discussed above. This is especially true once we consider the fact that some of the credit cards can be held by one partner, but maximized by both.

For example, if you travel often as a couple or as a family, then you could enjoy up to four Free Night Awards each year if two people were to have both the personal and the business co-branded Marriott Bonvoy cards.

You could use all four Free Night Awards for a single extended stay, or you could split it up into multiple, shorter stays.

Another consideration is whether or not your household maxes out the $2,500 monthly spending cap for 5x Membership Rewards points on the American Express Cobalt Card. 

If your grocery, dining, food delivery, and bar spending exceeds this amount, then it could certainly be worthwhile to have two separate Cobalt Cards in your household to maximize your return on spending.

As for the American Express Aeroplan Reserve Card, if there’s one partner who travels more frequently with Air Canada, they could pick up the card and share the benefits with the other partner when they travel together. 

This leaves 2–4 open slots between the two of you to take advantage of any attractive welcome bonuses that pop up on the remaining credit cards.

By pooling your efforts in two-player mode, you’re able to capture more ongoing benefits and one-time bonuses alike through your combined credit card portfolio. Just be sure to maximize your referrals to further pad the family balance.

Conclusion

In Canada, American Express limits cardholders to four revolving credit cards at any given time.

While there’s no cap on charge cards in the Membership Rewards family, it’s important to give some thought as to which products to keep in your four credit card slots. 

In most cases, the American Express Cobalt Card and the duo of Marriott Bonvoy co-branded cards make the most sense to keep open in the long run, with the final spot either dedicated to the American Express Aeroplan Reserve Card or kept flexible for future consideration.