Blue Sky from American Express(R) Card Review

The Blue Sky from American Express(R) card is a simple, straightforward rewards card that lets you redeem your rewards for a statement credit. There’s no annual fee and rewards never expire. Unlike American Express charge cards, this is a credit card meaning you’re not required to pay your balance in full every month. Instead, you can pay it over several months if you choose.

Rewards Program

With the American Express Blue Sky, you earn points on all your purchases, then redeem points for a statement credit towards your travel purchases. You earn one pont for every dollar you spend. Every 7,500 in points ($7,500 in purchases) is worth a $100 statement credit. Earn one point for every dollar. Points don’t expire and there are no blackout dates or restrictions on the flights or travel options. You can also redeem points for gift cards and cash rewards, in increments of 3,250 and 6,500 respectively.

To use your points simply book travel using your Blue Sky American Express Card, then redeem your points within 60 days of your travel purchase. If you wait too long, you won’t be able to use your points. Since you can only redeem in increments of $100, make sure your travel purchase is greater than $100 to avoid wasting points. Points can only be redeemed toward a single purchase.

You can earn a 2,500 bonus for each friend you refer to Blue Sky American Express (your friend must be approved to earn the reward). Your friend also earns a 2,500 bonus upon making the first purchase. The offer expires after 12/31/2011.

Through the Blue Savings Program you can save on travel expenses by using certain providers. For example, you can save up to 25% by booking rental car through Alamo, 20% with Hertz, or 5% off with $20 back with Enterprise.

Extra Benefits

Blue Sky offers purchase protection on purchases for up to 90 days after the date of purchase. Coverage is limited to $1,000 per occurrence, $50,000 each year, and pays on top of other insurance coverage. Return protection up to $300 for up to 90 days after purchases made with your American Express Blue Sky. An extra one year warranty on top of the manufacturer’s warranty that are five years or less.

Fees and Interest

You may qualify for a 0% introductory APR on purchases for 6 or 12 months depending on your credit history. The regular purchases APR will be variable 17.24%, 19.24%, or 21.24% depending on your credit history.

The balance transfer APR will be 17.24%, 19.24%, or 21.24% depending on your credit history. The fee for transferring a balance is $5 or 3% whichever is greater.

The cash advance APR is 25.24% variable. The cash advance fee is $5 or 3% of the advance, whichever is greater.

The penalty APR is 27.24% variable. All variable APRs are based on the Prime Rate as published by the Wall Street Journal 2 days before your billing period closes.

The American Express Blue Sky credit card charges a 2.7% foreign transaction fee based on the amount in US dollars. There’s no annual fee.