Join Date: Apr 2005
Location: Los Angeles, CA
Programs: AA Plat, HH Gold, SPG Gold, HH Gold, Marriott Silver, Amex Plat, GlobalEntry, SW A-List Preferred
Posts: 866
I just got that Amex, signed up for the $250 of course.
I run about $80K/year through credit cards so it would come out to:
(0.005*20000+0.025*60000)/80000 = 2%
A wash for me: I already get 2% effective cash back on Citi Premier Pass (as gift cards, as long as you buy a few long-haul plane tickets).
The Amex does makes sense if you spend more than $80K/year (or never buy plane tickets).
Added: you could also get into some IRS problem since that Amex is a business card and you should probably declare that cash back (and the $250 bonus) as income. I would tread lightly there...