Delta SkyMiles® Gold American Express Card review: Enough perks to justify the annual fee

Less-frequent Delta travelers who want to stockpile miles from their household and dining expenses will likely get the most value out of the Delta SkyMiles® Gold American Express Card.

Even at $99 each year ($0 the first year), the Delta Gold card’s unlimited rewards, welcome offer and travel benefits outweigh its no-annual-fee sibling, the Delta SkyMiles® Blue American Express Card. Considering the free first checked bag or the annual flight credit perks easily cover the annual fee anyway, it’s worth considering the SkyMiles Gold as a starter Delta card.

Travelers chasing immediate savings over prestige status benefits could easily find that this is the best Delta credit card for their occasional flights. However, the co-branded SkyMiles Gold isn’t as flexible as a general-purpose travel credit card, which may be worth considering if you’re an infrequent traveler or aren’t as eager for Delta-specific perks.

Quick highlights

• Rewards rate: 2X miles on restaurant (plus takeout and delivery in the U.S.), U.S. supermarkets and Delta purchases; 1X miles on all other purchases
• Welcome offer: Earn 40,000 bonus miles after you spend $2,000 in your first 6 months.
• Annual fee: $99 ($0 intro annual fee for the first year)
• Purchase intro APR: N/A
• Balance transfer intro APR: N/A
• Regular APR: 19.99 percent to 28.99 percent (variable)
• Terms apply

Current welcome offer

You can earn a welcome bonus of 40,000 bonus miles after spending $2,000 in purchases within your first six months as a cardholder. Unfortunately, that’s a 25,000-mile drop from the card’s most recent limited-time offer of 65,000 miles after a $2,000 spend in your first six months.

That said, the new offer still carries decent value. Based on Bankrate’s latest mile valuations, which give Delta SkyMiles an estimated average value of around 1.3 cents per mile, we estimate the current bonus is worth around $520 in travel with Delta.

Rewards rate

The Delta SkyMiles frequent flyer miles you earn with your Delta Gold American Express card are intended to cover airfare like other airline card rewards. Delta Gold also allows you to earn “Medallion Qualification” currency, but achieving top Delta perks and rewards rates this way is more difficult without the premier Delta cards’ Status Boost feature.

How you earn

The Delta SkyMiles Gold offers 2X miles on Delta purchases and partner airline travel, 2X miles at restaurants (including U.S. delivery and takeout) and U.S. supermarkets and 1X miles on all other purchases.

The SkyMiles loyalty program provides two additional ways to earn bonus miles on top of your spending. Qualifying for Medallion Status can earn another whopping 7X to 11X miles on Delta flights, but this isn’t the most feasible way to earn bonus miles since the Delta Gold doesn’t offer Status Boost or other features that could help you obtain elite status faster like the top-tier Delta cards do.

Luckily, the Delta SkyMiles Dining program perfectly suits the Delta Gold card’s reward categories. By aligning your restaurant spending, you can work your way to VIP status and earn up to 5X miles on top of the card’s 2X rate, for a total of up to 7X miles on restaurants.

How to redeem

This might not be a concern if you’re in the market for a Delta rewards card, but your redemption options are pretty limited compared to non-branded travel cards. The “Pay with Miles” and “Pay with Miles + Cash” options only let you book travel or upgrade seats with Delta, including when you fly with their SkyTeam partner airlines. This means that your reward value is tethered to Delta and you can’t transfer miles to other loyalty programs for a better deal.

The options outside travel aren’t particularly appealing either. You can gift miles to other accounts or charities or spend them on travel experiences, merchandise or magazine subscriptions. Fortunately, you can now knock $50 off the cost of your flight for each 5,000 miles you redeem when booking entirely with miles.

The value of your miles varies based on how you redeem your rewards. If you want to use your miles to bring down the cost of a ticket, Delta’s Pay with Miles lets you reduce the cost of a ticket by $50 for every 5,000 miles you use. This ratio makes your rewards worth 1 cent apiece.

You can also redeem your miles for award flights. Based on Bankrate’s latest points and miles valuations, Delta SkyMiles are worth an estimated 1.3 cents each on average when redeeming for award flights. This helps make Delta’s rewards program one of the top three airline rewards programs in North America:

* Based on weighted average of median point/mile values across economy and first/business class fares.

If you want to be sure you’re getting the best value out of your rewards, calculate the value of your miles before you book your flight. To do this, divide the cash cost of the ticket you want to purchase by the number of points needed.

For example, if you wanted to book a flight from Boston to Miami that costs either $365 or 28,500, your points would be worth 1.3 cents each ($365 / 28,500 = $0.0128 or 1.3 cents). This matches Bankrate’s estimated 1.3-cent-per-point valuation, so you’d be getting a good deal.

But if you found yourself staring at a flight that costs $365 or 54,000, your points would only be worth 0.7 cents ($365 / 54,000 = $0.0067). This is well below our 1.3-cent-per-point valuation. If possible, you’re better off searching for a different flight or paying with cash and saving your miles for another trip.

Even though Delta SkyMiles are valuable compared to other airlines, a general travel rewards card could provide better value. In fact, skipping the co-branded card for one of American Express’s travel cards will net you much more valuable Membership Rewards points — worth 2.1 cents each, according to Bankrate’s estimations — which can still be transferred to your Delta SkyMiles account.

Value-savvy flyers will find a healthy supply of premium benefits that will cover their annual fee with savings throughout their Delta journey.

These perks are definitely worth the card’s price tag, but keep in mind that Delta’s finest benefits are exclusive to their top-tier cards and Medallion Status members.

Travel benefits and other savings

The Delta Gold card carries a host of benefits that save you time and money throughout your travels:

• $100 annual Delta flight credit after spending $10,000 in one year
• First checked bag is free on Delta flights
• Main Cabin 1 priority boarding
• 20 percent statement credit back on select in-flight purchases
• Travel protections, including baggage insurance and car rental loss and damage insurance
• Shopping protections, including extended warranty coverage and purchase protection

These features can justify the Delta Skymiles Gold card’s annual fee and will certainly come in handy, but a few competing cards do offer a bit more in the way of travel insurance and credits. For example, the Chase Sapphire Preferred® Card offers trip cancellation and interruption insurance, one of the most coveted travel protections, plus bonus points on your account’s anniversary and other annual credits. Its anniversary bonus bestows 10 percent points on your total spending for the previous year, which can really add up.

Complimentary ShopRunner membership

All U.S. consumer American Express cards are eligible to receive a complimentary ShopRunner membership. ShopRunner provides free two-day shipping on online purchases from over 100 participating retailers, which can be useful when buying travel accessories and gifts.

Pay It Plan It

As an Amex card, the Delta Gold also has access to the Pay It Plan It purchase management program. Pay It lets you immediately take care of small purchases under $100 with the American Express app. This makes it less of a hassle to earn rewards with your credit card, since you can treat it almost like you would a debit card.

The Plan It feature is a bit more helpful if you’re in a pinch. If you’re trying to whittle down interest payments, you can move a qualifying larger purchase over $100 into a payment plan within your credit card instead of adding it directly to your balance. Remember to use Amex’s pre-purchase calculator to make sure your plan fees won’t exceed what the initial interest would have cost.

The Delta Gold has the potential to be a low-maintenance card. There are no foreign transaction fees when you fly or make purchases abroad, and the card offers an introductory annual fee of $0 for the first year. Even after that, the rewards and benefits can easily compensate for the $99 fee.

If you can pay your balance in full each month, you won’t have to worry about the card’s variable APR of 19.99 percent to 28.99 percent. But if you make one or more late payments, you could wind up with a penalty APR of 29.99 percent, which will last for at least six months.

Getting enough value from your Delta SkyMiles Gold depends on how often you fly with Delta and whether this is your primary rewards card. The two recurring benefits that carry a monetary value are the $100 annual Delta flight credit and the first free checked bag you’ll get on Delta flights, which saves you about $60 per round-trip flight. Simply taking two round-trip flights per year essentially covers your annual fee, or you can completely offset it by spending $10,000 per year for the flight credit.

Based on Bureau of Labor Statistics spending data*, the credit’s spending requirement is easily within reach of the average person’s dining, grocery and travel budget, but you can also recoup the annual fee by spending around $3,800 in your 2X mile earning bonus categories each year (based on Bankrate’s 1.3-cent-per-mile valuation).

You’ll get great first-year value thanks to the card’s generous welcome offer and getting your annual fee waived for the first year sweetens the pot. With that in mind, the Delta Gold could be a good trial to see whether you may need to upgrade or downgrade your Delta card if it turns out the annual fee or absent Status Boost are dealbreakers.

*Based on our formula used to calculate each card’s average rewards rates and average ongoing rewards value, using Bureau of Labor Statistics spending data and an assumed $15,900 yearly spend over three years ($1,325 per month).

The Delta SkyMiles Gold American Express Card has plenty of perks for individuals looking for an entry point into co-branded airline credit cards and offers ample opportunity to recoup the value of the $99 annual fee. However, the value of these benefits is not the same to every consumer. If you are a loyal Delta flyer that values free checked bags and earning rewards while dining or at the grocery store, this is a great card for you. If you’re a frequent traveler that doesn’t mind splurging on a higher annual fee to gain access to more premium benefits, it may be best to look elsewhere.

Delta SkyMiles Gold vs. Delta SkyMiles® Platinum American Express Card

The Delta SkyMiles Gold is a solid pick if you’re a less-frequent traveler but still travel with Delta enough to take advantage of a handful of airline-specific perks. Still, its light feature list makes it lean closer to the no-annual-fee Delta SkyMiles Blue rather than the next tier up from the base Delta card. The Delta SkyMiles Platinum American Express Card is a better option if you often travel with Delta since it bumps the airline purchase rewards to 3X miles and offers a much richer suite of Delta-specific perks.

Although it poses a steeper $250 annual fee, the up to $100 credit for Global Entry or TSA PreCheck application fees (both now available following Global Entry approval via an Authorized Enrollment Provider), Delta Sky Club access ($39 per-visit rate) and annual Main Cabin round-trip companion ticket (only valid for domestic flights) stacked on top of the SkyMiles Gold card’s benefits are incredibly valuable if you’re hankering for a smoother journey.

Perhaps even more importantly, the SkyMiles Platinum provides a faster means of achieving elite Medallion status with Delta, which can multiply your Delta rewards rate by up to nearly four times and net you incredible benefits like fee waivers, premium customer service and exclusive airport and airline privileges. It’s possible to reach medallion status with the SkyMiles Gold, but the SkyMiles Platinum greatly speeds up the process with its Status Boost (earns you 10,000 MQMs after spending $25,000, up to twice per year) and Medallion Qualification Dollar (MQD) Waiver (earned after spending $25,000 in a calendar year). With these Status Boost options, what would normally take spending at least $3,000 on qualifying Delta flights and traveling approximately 30 times or 25,000 miles minimum per year could be greatly reduced through credit card spending.

Delta SkyMiles Gold vs. American Express® Green Card

One of the main drawbacks of the SkyMiles Gold is how low-value its rewards can be, considering the dynamic pricing redemption model and how your miles are stuck with Delta. If you’re willing to front a slightly higher annual fee but want a more flexible travel card, then the American Express® Green Card could be a worthy alternative. Not only does it earn 3X points in a generalized travel category (encompasses flights, hotels, transit, taxis, ride-share services and tours), 3X points at restaurants and 1X points on all other purchases, but Amex’s points are some of the most valuable on the market and can be transferred to Delta for potentially more value than the SkyMiles Gold’s airfare rewards.

The Amex Green does come with a higher $150 annual fee, but its additional features more than make up for it. It carries similar travel and purchase protections — except the Amex Green offers trip delay insurance — and it also offers two up to $189 annual credits for both a Clear airport security membership and Lounge Access through LoungeBuddy (lounge access being absent from the SkyMiles Gold card). It’s also worth noting that if you’re a big spender, the Green Card is one of Amex’s cards with a flexible spending limit. That means it grants the spending power of a charge card but allows you to carry over approved purchases of over $100 via Pay Over Time (at the current Pay Over Time APR: 20.24 percent to 27.24 percent, variable).

Best cards to pair with this card

Other Membership Rewards-earning American Express cards can not only transfer points to Delta, but also rack up points that are more valuable when transferred to other airline partners. The Amex Green may be a great option for pairing with the Delta Gold since most of the American Express travel cards’ reward rates either overlap or outclass the Delta Gold card’s. A flat-rate card that earns rewards you can redeem them for travel outside Delta may also be helpful, like the Bank of America® Travel Rewards credit card or Discover it® Miles.

If you care more about achieving Medallion Status and earning 3X miles on hotels and Delta flights, the higher-tier Delta Platinum card can provide key Status Boost, annual companion certificate and extra travel protection features to meet those elite criteria while the Delta Gold earns more rewards on purchases outside the airline. Just make sure your spending will justify the additional $250 annual fee.

Despite the $99 annual fee after the first year, the Delta SkyMiles Gold American Express card proves to be a worthwhile starter card with Delta. Its premium benefits and rewards on everyday purchases at restaurants (including U.S. delivery and takeout) and U.S. supermarkets provide great reward opportunities to value-minded travelers that aren’t chasing elite status perks and rewards. Its free first checked bag and annual travel credit essentially cover the annual fee, which is enough to put it over the base Delta Blue SkyMiles card.

But unless you’re a loyal Delta traveler, it might be wiser to choose a non-branded card if you’re focused on flexible rewards for day-to-day expenses. The Delta SkyMiles Gold offers solid rewards and benefits, but the rewards value and features are a bit weak compared to other premium travel cards that don’t rely on a specific airline. If you are a frequent Delta flyer, then it may be worth considering a higher-caliber branded card since they come with more airline-exclusive perks and Status Boost in order to nab elite status faster.

All information about the American Express® Green Card has been collected independently by Bankrate and has not been reviewed or approved by the issuer.

For rates and fees of the Delta SkyMiles Gold card, please click here.

Eligibility and Benefit level varies by card. Terms, Conditions and Limitations apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by Amex Assurance Company.