Mar 2nd, 2009
TrueEarnings from American Express and Costco: Worth it?
The only reason I have an American Express card of any kind is for shopping at Costco. I used to have an American Express Blue card but I found their customer service so horrible I canceled it. A year or so later, deciding I really wanted to have something that Costco would take, I applied for and received the TrueEarnings card, which provides a yearly Costco rebate–basically a credit that can be used with a Costco purchase.
The reward structure for TrueEarnings, at least right now is 3% for gasoline or eating out (restaurants), 2% for travel, and 1% for just about everything else, including Costco. In addition, there are a lot of the typical American Express perks like extended warranties and certain special discounted offers. There’s no fee for the card, but my yearly Costco membership is charged to it; that amounts (with tax) to $52.36.
This year’s reward totaled $56.89. In my mind, not counting any other ways I spent less by using Costco, if my rebate is equal to or greater than my membership fee, it was worth it. So for me, this year (and so far every year), it’s worth it.
I thoroughly enjoy reading your posts, but I think this is the first time I’m commenting. Keep up the great financial advice and lessons!
I have to agree that it’s worth it; the fee waiver alone can be enough sometimes. One trick we use: when dining out with friends, we offer to put it on our AmEx, especially when everyone else brings cash anyway. This allows us to take full advantage of the 3% rebate. Of course, *that* only works if we take the money from dinner pals and deposit it in the bank.
I think it’s worth it.
I recently started a project to use Costco’s American express card exclusively for 1 year. I will try to use AmEx whenever I pay for anything for 1 year.
I want to see how much I am going to get back next February (Feb 2010).
Have a nice day.
http://www.ILoveCostco.com
Capsun:
Hey, I read your blog too! I do that trick myself when I’m with a group (although I probably treat other people to eat way too much). It’s like getting an interest free loan for a few weeks.
John:
Seems like lots of folks feel it’s worth it–they also seem to feel getting the executive membership is too, but I haven’t been convinced. Yet.
[...] done one of these, but I haven’t stopped shopping at Costco. In fact, as I stated previously, I was looking at my Costco reward from my American Express TrueRewards card recently. I do admit, however, I’ve been negligent in updating this (not so) regular column. So, [...]