I’ve been a Costco member for 5 years and right around the time that my wife and I started shopping there, we signed up for our primary credit card, the TrueEarnings® Card from Costco and American Express.
I’ll definitely be chatting about the virtues of cost savings from Costco on another day, but for today, I thought I’d chat about the virtues of the TrueEarnings Card.
But first, a disclaimer: before I get railed for talking about a credit card, know that I have never paid a fee or carried a balance on one. I’ve only used them to build my credit score and get rewards. If you don’t have that kind of discipline, this or any credit card is not for you. And I actually have used this American Express card for 5 years.
Here are the card rewards you receive with the True Earnings card:
- 3% cash back for gasoline for annual gasoline purchases of up to $3,000 (1% thereafter)
- 3% cash back for restaurants
- 2% cash back for travel
- 1% everywhere else, including Costco.
Not bad, eh?
American Express does a great job at breaking down your spending in each category, much like Mint.com or Quicken. To the right, you can see a portion of my year-end summary. Using the yearly totals in each reward percentage category, I calculated that for 2009 the additional rewards (above and beyond the typical 1% most card rewards programs offer) earned me an additional $95 over the year.
This is one of my favorite things about the Costco American Express. Your card issues a cash rebate coupon annually. It can be redeemed at any U.S. Costco warehouse for cash or merchandise. I usually get my rebate in February and then have until August to redeem it. On one of our monthly trips to Costco, we redeem the card for cash.
Excellent cash rebate card rewards aside, the card offers a lot of other really nice benefits:
No annual fee with paid Costco membership.- All material purchases with the card get a 1-year extended warranty. This is actually a great benefit. When I purchased a Vizio TV from Costco, it came with a 1-year warranty and since I used the card to purchase it, I was, in effect, getting a free 2-year warranty on it.
- Free roadside assistance. Haven’t needed it yet, thankfully.
- Free 30-day credit score and report from Experian.
- Your card is also your Costco membership card (1 less card in your wallet).
- Costco only accepts American Express, PIN-based debit cards, cash, or check. It’s the only credit card you can use there. If you have a business and purchase from Costco a lot, the rewards can really add up vs. one of the other methods.
- 0% APR for 6 months.
- American Express truly does have great customer service. They are available 24/7 and I have requested multiple credit line increases and not been turned down.
Yes, not every merchant takes American Express. In my experience, about 75-85% do. For that reason, you might want to have a backup Visa or MasterCard debit card on hand. If you’re looking for one with rewards, it would be hard to beat Perkstreet Financial.
If you don’t shop at Costco and are looking for an American Express card with similar benefits, check out the Blue Cash® from American Express. It offers zero annual fee, roadside, extended warranty, 0% APR for 6 months, and a very generous rewards structure, much like the TrueEarnings Costco American Express.
Disclaimer: This content is not provided or commissioned by American Express. Opinions expressed here are author’s alone, not those of American Express, and have not been reviewed, approved or otherwise endorsed by American Express. This site may be compensated through American Express Affiliate Program.
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