When is the Amex Gold Annual Fee Charged?

The American Express^® Gold Card is one of the most well-rounded cards available in the market. With a great rewards system, welcome bonus, additional benefits, the card is highly desired by many cardholders. 

However, this fantastic card comes with an annual fee of $250. For those who will use the Gold card often by capitalizing on the welcome bonus, travel perks, and points system, $250 a year is very well worth it. For others, the fee may be too high.

An annual fee may be quite confusing for many new credit cardholders,  Do you pay the $250 at the beginning of the year or the end of the year? Or is the payment divided into smaller amounts to pay off each month? Not to worry as we’ve got you covered.

Annual Fee Payment

For the American Express Gold Card, the annual fee payment is charged immediately when the account is opened. All $250 will be applied to the first statement and must be paid alongside any other charges incurred during that period. After the first payment, all future annual fees will be applied to the first statement after the card's anniversary. This format generally applies to almost all other card carriers.

Card Cancellation

If the annual fee of the American Express Gold Card seems too high for the perks you are getting out of it, it might be a smart financial decision to cancel the card. However, you should wait right before the next annual fee is due before canceling the card in order to retain the benefits of the Gold Card before the next annual fee is charged. 

American Express will refund the annual fee entirely if you cancel the card within 30 days after the next annual fee is charged. If canceled after 30 days, you will still, unfortunately, have to pay the $250. Remember that you still have to pay off any charges or interest incurred; those will not be canceled.

If you would still like to retain an American Express card but not pay the $250 fee of the Gold Card, you can always downgrade by calling American Express’s customer service. AmEx cards with low or no annual fees include the Blue Cash Everyday^® and the Green Card. Note that American Express recommends that you wait at least one full year before downgrading.

Conclusion

The American Express Gold Card is a great card for both everyday use and when traveling, but the $250 annual fee may not be for everyone. It’s important to understand what an annual fee is and when it is due so that you can remain financially aware of your upcoming expenses.