American Express is globally renowned for its premium credit cards, exceptional customer support, and unparalleled service. However, they also offer one of the most rewarding entry-level credit cards in India is the American Express Membership Rewards Credit Card (MRCC). Despite its entry-level categorization, the MRCC provides a reward rate that can rival even super-premium credit cards, making it an excellent option for individuals starting their credit card journey. Here’s an in-depth review of the MRCC and why it’s a game-changer in the rewards credit card space.
Key Features at a Glance
- Type: Entry-Level Credit Card
- Reward Rate: 1% – 10% (depending on spend and redemption method)
- Best For: Gold Collection redemptions and regular monthly milestone benefits
- USP: Monthly Reward Milestones for everyday spending
- Annual Fee: ₹1,000 + GST (First Year); ₹4,500 + GST (Subsequent Years)
- Renewal Fee Waiver: Possible with annual spends exceeding ₹1.5 lakh
- Welcome Benefit: 4,000 Membership Rewards (MR) Points, plus 2,000 bonus MR points for limited-period referral offers
Rewards and Benefits
Regular Spends
- Earn 1 Membership Reward (MR) Point for every ₹50 spent on the card.
- Exclusions include utility bills, fuel spends, and a few other categories.
- Points do not expire, allowing you to accumulate them over time for higher-value redemptions.
Monthly Spend-Based Milestones
- Milestone 1: Earn 1,000 bonus MR Points for completing four transactions of ₹1,500 or more in a calendar month.
- Milestone 2: Earn an additional 1,000 MR Points for spending ₹20,000 in a calendar month (requires enrollment).
These milestones make the card highly rewarding for disciplined monthly spenders. For instance, by spending ₹20,000 each month, you can earn 2,000 bonus MR Points monthly, translating to 24,000 MR Points annually on a total spend of ₹2.4 lakh. This equates to a ~6% reward rate if redeemed for Gold Collection vouchers.
Welcome Benefits
- Receive 4,000 MR Points as a joining benefit.
- Apply through a referral link to earn an additional 2,000 MR Points upon spending ₹5,000 within 90 days.
- Combined, these benefits deliver an impressive value of ₹3,000 (based on the valuation of MR Points).
Redemption Options
MR Points offer flexible and valuable redemption options:
- Gold Collection: Redeem points for Taj or Marriott hotel vouchers at an effective rate of 0.58 INR per point, significantly enhancing the reward rate.
- Cashback: Points can be redeemed for statement credit, although this offers lower value (~0.25 INR per point).
- Travel: Use points for flight or hotel bookings via American Express Travel, though this may not maximize point value.
Fees and Waivers
Joining Fee:
- ₹1,000 + GST (First Year)
- Comes with 4,000 MR Points, effectively offsetting the joining fee.
Annual Renewal Fee:
- ₹4,500 + GST
- Can be waived entirely with annual spends exceeding ₹1.5 lakh or reduced by 50% for spends above ₹90,000.
These waivers make the MRCC a practical choice for individuals with moderate to high annual spending.
Eligibility Criteria
To apply for the American Express MRCC, the following conditions must be met:
- Age: Applicants must be at least 18 years old.
- Income: Minimum annual income of ₹6 lakh (salaried or self-employed).
- Business Requirements (for Self-Employed): Business should have been operational for at least 12 months.
- Residency: Permanent residence in India.
- Credit Score: A good credit history is required.
How to Apply
You can apply for the MRCC through any of the following channels:
- Online: Visit the official American Express website or apply through a referral link to earn bonus MR Points.
- Offline: Visit an American Express branch or an airport outlet.
Applying through a referral link is highly recommended, as it provides additional benefits such as 2,000 bonus MR Points.
Strengths of the MRCC
- High Reward Rate: Earn up to 10% rewards on milestone spends.
- Flexible Redemptions: Maximize point value through Gold Collection and other premium options.
- No Expiry on Points: Accumulate points for high-value redemptions without time pressure.
- Customer Service: American Express is known for its excellent support and hassle-free processes.
Drawbacks to Consider
- High Renewal Fee: While the fee can be waived, it may not suit low spenders.
- Limited Acceptance: American Express has lower acceptance in India compared to Visa and Mastercard.
- Exclusions: Utility, fuel, and other spends are not eligible for rewards.
Conclusion
The American Express Membership Rewards Credit Card is an exceptional entry-level card for individuals seeking high reward rates and flexibility in redemption. With its lucrative monthly milestones and the ability to accumulate points for premium redemptions, the MRCC is a great starting point for anyone new to the world of credit cards or looking to enhance their rewards game.
While it’s not the best choice for low spenders or those seeking universal card acceptance, the MRCC stands out for its value-driven benefits, making it a must-have for frequent shoppers and those who can utilize its reward structure effectively.
If you’re ready to unlock the power of rewards, the MRCC might just be the perfect card for you.
