True Earnings American Express Costo Card Review
September 10, 2010
The True Earnings American Express card can be a good credit card if you’re a Costco member. How much can the True Earnings Costco card save you on every shopping trip?
Chances are if you’re a Costco shopper then you’re likely a natural born bargain shopper. On top of the bulk discounts you get at Costco, the TrueEarnings card earns you cash back on purchases at the store. Since the credit card also serves as your Costco membership card you’re sure to have it with you every time to earn rewards.
TrueEarnings Rewards: The best rewards points for this card are for everyday purchases such as gas which nets 3% back on the first $3000 annually and 1% after that. You’ll get 2% back for travel purchases & and restaurants and 1% back for everything else, including shopping trips to Costco.
When you buy gas, you’ll get the full 3% back, which is why it’s one of the best gas credit cards. Unlike other gas rewards cards which require minimum spending levels or seasonal purchases for the highest cash back, the True Earnings card earns you 3% cash back on the very first dollar you spend on gas, regardless of the season.
TrueEarnings Promotions: In the past, Costco ran True Earnings promotions for new customers to help offset the cost of membership. They’re not offering anything right now for new customers but if you’re an existing customer and you apply for the TrueEarnings card or sign up to have your Costco membership automatically renewed and charged to your TrueEarnings you’ll get two free months of Costco membership.
TrueEarnings Fees: There is no annual fee for the True Earnings card but you do have to be a Costco member to shop there and that requires a membership fee. The upside is that if you don’t make back the membership fee in savings over the course of a year, Costco will refund your fee.
You can also become an Executive member for a higher fee but then you actually earn an additional 2% cash back on purchases, making it easy to cover the fee with your savings.
The APR: The APR is an important factor if you carry a balance because it could negate whatever bonus you might be earning on purchases. The good news is that the American Express TrueEarnings credit card offers an introductory 0% APR upfront, and then a decent variable APR depending on your credit.
Conclusion: You know you can earn 3% cashback at restaurants but one thing we haven’t mentioned is that True Earnings rewards card can also be used at other stores outside of Costco. You won’t get the same benefits, you only earn 1% cash back on purchases at stores other than Costco.
The best benefits of the TrueEarnings card are when it’s earning maximum cash back, which is on restaurants and gas. So if you are a Costco member or thinking about becoming one then this card is for you.