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 BJ’s or Costco are restricted from generating cash back for shoppers on most credit cards, except for the TrueEarnings® Card from Costco and American Express.
All 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 bonus period expires, the purchase APR becomes 15.24% variable. 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.
- 3% cash back on gasoline purchases for the first $3,000 spent each year. 1% cash back thereafter.
- 2% cash back on all restaurant purchases
- 2% cash back on all travel purchases
- 1% cash back on everything else, including all Costco purchases
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. The maximum possible cash back that cardholders can earn every year is unlimited, and the rewards never expire.
Another benefit for holders of the TrueEarnings® Card from Costco and American Express is that there is no annual 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 such as extended warranties and exclusive travel and entertainment opportunities.
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 is a must. While you can save hundreds of dollars just by shopping at a warehouse like Costco and receiving 1% cash back, when you combine these savings with the 3% cash back on gas and 2% cash back on travel and restaurants, it’s a top notch cash back credit card. Visit the secure application page for the TrueEarnings® Card from Costco and 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.
Updated August 9, 2011 and originally published May 11, 2011. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @flexo on Twitter and visit our Facebook page for more updates.
Rank: Platinum
{ 14 comments… read them below or add one }
Only knock I have against this card is that rewards are only credited once a year. Other than that, it’s great.
wow, that is a little bit of a bummer. flexo may want to put that in the review.
Sounds like a great card. I wasn’t aware of how these cards usually worked. Thanks for the info!
I have this card and like it very much. However, one correction to your great article is in order. You state in part, “. . . and the rewards never expire.”
Actually they do. I received my annual rewards check and it specifically states that it expires on August 31, 2011.
American Express seems to have removed the language that referred to the annual rewards check expiring — but anyone who issues any type of check may allow it to be rejected after 180 days. I often see “void after 90 days” or “void after 180 days” on certain business checks I receive. The point of “rewards never expire” is that you’ll always receive a check representing the full amount of cash back you earned. Checks can expire.
I don’t recall receiving my annual rewards check in the mail. I called today and was told It was for over $1000 but it expired in August and they will credit my AmEx balance for 1/4 the amount. I said that was not acceptable and they said “there is nothing else they can do”.
I live in California, and there are laws that prevent “gift cards” from expiring. Any idea of this gets covered by that law?
Has anyone ever complained to their state’s attorney general about this?
Thanks
Mark
Although I would like to see monthly credit of the rebates, it is still a decent deal on the gas. The Costco gas is generally 5-15 cents below market prices for the area, the rebate is a nice extra.
This is my primary card and I use it for everything. Nets me >$500 in rewards annually. The card is great in general and I recommend it. Its especially good for the 3% restaurant rewards. It also doubles as your Costco club card.
The only problem I have is the minor annoyance with having to go to Costco to cash in your rewards check which they give you in cash. I’d rather they just mail a regular check or credit my account, but its clear they are just trying to push you into their store with a pile of cash which you might spend there.
I love this card. I use it for gas and costco purchases only because i have a 2% cash back on everything card and I can get the rewards sooner than once a year.
I used to use a cash back American Express similar to this card, but recently switched to a Capital One cash back MasterCard for a couple reasons. 1) it is accepted everywhere, which is not only easier when deciding which card to pull out at the register, but also because it leaves me with only 1 payment to make each month. 2) there are no tiers, so 2% is earned on gas and groceries forever and 1% for everything else. 3) the rewards are earned immediately as soon as the purchase has cleared, and 4) they are automatically applied to my statement balance as a credit as soon as they hit $25. I highly recommend this card!
We don’t have a Cosco, so no problem here. I use only one card, the other to keep it updated once in a while.
This sounds like a great card. Costco rocks. I may have to break my own rule about not applying for anymore credit cards to get this one. Thanks for the info!
this sounds like a great card! (not that is matters, but it has a nice look as well) i do not have Costco near me or i would seriously consider it. i never knew that rewards were not given at stores like Costco, thank you for the information.
BE CAREFUL. IT ONLY TAKES ONE LATE PAYMENT AND AMX WILL CHARGED YOU LATE FEE + INTEREST (UP TO 27.24%) FOR TWO MONTHS (even if you paid the full amount) WHICH WILL BE MORE $$$ THAN YOUR EARNINGS!!!