American Express Costco TrueEarnings (Old Review NOT Being Updated)
Updated March 26, 2015.
The Facts
The Math
While you can always find better cards out there in every categories (5% on gas from PenFed Visa, 5% on dining from Citi Forward, 2% on everything from Fidelity Amex), the fact that you can carry just one card almost everywhere (saving places that don’t take Amex) and still get very well rewarded, especially in cash, makes it very attractive. If your monthly gas purchases far exceed $250 (for personal card) or $500 (for business card), you may really want to look into something else due to the cap.
The Conclusion
A great cash back card for people who don’t like too many cards in their wallets. Too bad that it does not give bonus on Costco purchases. A similar card is Amex Blue Cash Everyday.
The Facts
- Annual Fee: None if you are a Costco member
- Signup Bonus: None
- Rewards: 3% U.S. gas stations (including at Costco, for the first $4,000 annual gas purchases, 1% thereafter), 2% U.S. restaurants, 2% travel, 1% everywhere else. The business card version has 4% on gas instead of 3% and the annual cap is also raised to $6,000. Cash back rebates will be issued in form a voucher annually that can be redeemed at Costco cashiers for purchase credit or cash.
- The History: American Express keeps on devaluating this card. At first they offered 5% on gas, then 4%, and then down to 3%. Now they even put a cap on annual gas purchases.
- Other Facts: You can use your Costco credit card as your Costco membership card when entering Costco and checking out. This saves one spot in your wallet, which may be beneficial psychologically to some.
The Math
While you can always find better cards out there in every categories (5% on gas from PenFed Visa, 5% on dining from Citi Forward, 2% on everything from Fidelity Amex), the fact that you can carry just one card almost everywhere (saving places that don’t take Amex) and still get very well rewarded, especially in cash, makes it very attractive. If your monthly gas purchases far exceed $250 (for personal card) or $500 (for business card), you may really want to look into something else due to the cap.
The Conclusion
A great cash back card for people who don’t like too many cards in their wallets. Too bad that it does not give bonus on Costco purchases. A similar card is Amex Blue Cash Everyday.