In 2009, Congress passed enacted laws that require credit card issuers to be more direct with their terms and conditions. Companies can no longer get away with double-cycle billing and hidden fees, which were costing customers millions of dollars every year. There are still a few items found in the fine print that customers often aren’t aware of. For example, a 1% cash back credit card doesn’t always include all purchases. Warehouse clubs like Costco are restricted from generating cash back for shoppers on most credit cards, except for the TrueEarnings® Card from Costco and American Express.
New cardholders of the TrueEarnings® Card from Costco and American Express will receive a 0% introductory APR on purchases for the first six months. Once this introductory period expires, the purchase APR will be a variable rate, currently 15.24%. Unlike many other popular offerings from American Express, this is a credit card, not a charge card. Cardholders will have a credit limit based on the quality of credit history.
What makes the TrueEarnings Card from Costco and American Express so attractive to Costco members is the cash back. Currently, this card has a tiered approach to cash back rewards. Cash back on your TrueEarning Card from Costco and American Express is earned only on eligible purchases. Here is the breakdown of cash back rewards:
- 3% Cash back at US gas stations and on gasoline at Costco up to $4,000 per year in purchases, then 1%
- 2% cash back at US restaurants
- 2% cash back on eligible travel purchases, including at Costco
- 1% cash back on other purchases, including at Costco
- Terms and limitations apply
You will receive your cash back in the form of an annual reward coupon on your billing statement, which you redeem in person prior to its expiration date for merchandise or cash at any U.S. Costco Warehouse.
As mentioned above, this is one of the only credit cards that offer cash back on Costco purchases. Even though other cards advertise up to 5% cash back on purchases, warehouse transactions do not qualify.
Another benefit for holders of the TrueEarnings Card from Costco and American Express is that there is no annual membership fee as long as you pay your Costco membership every year. Since this card is co-branded between Costco and American Express, you receive expected American Express perks for example purchase protection and extended warranty.
If you have the excellent credit require to obtain the TrueEarnings Card from Costco and American Express and are a paying member of Costco, this card may be worth exploring. While you can save hundreds of dollars just by shopping at a warehouse like Costco, when you combine these savings with the cash back offer this card promotes it’s a top notch cash back credit card. For more information about the terms & conditions, restrictions that apply or to fill out an application, visit the secure application page for the TrueEarnings Card from Costco and American Express. Terms and Restrictions Apply.
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.
Important Note! The information in this article is believed to be accurate as of the date it was written. Please keep in mind that offers change frequently. Therefore, we can not guarantee the accuracy of the information in this article. Please verify all terms and conditions of any credit or charge card prior to applying.
Updated May 13, 2013 and originally published May 11, 2011. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.