Many people love shopping at Costco because of the wide variety of items available including their organic items offered at a reasonable price and their store brand quality products, Kirkland. However, Costco can be inconvenient because they only take cash or Costco gift cards. The one exception to the no credit card rule is the TrueEarnings® Card from Costco and American Express.

This card offers an array of benefits that will please most card owners.

Features of the True Earnings Card from Costco and American Express

This card is attractive due to its cash back program and the rewards for Costco members. In addition, it has no annual fee (if you are a Costco member), which is not common with a cash back reward card. Here are some of the perks that you will receive as a True Earnings Card member:

If you are a regular Costco shopper, you will enjoy the following advantages:

There is no annual fee if you have paid your Costco membership

You do not have to carry your Costco card with you as the True Earnings Card serves as your Costco card also

Your Costco membership is automatically renewed and charged to your True Earnings Card

In addition to Costco members, there are impressive rewards for all card holders including:

Cash back for every purchase! You will earn cash back at the following increments:

3% for the first $3,000 in gasoline purchases annually, and 1% thereafter



2% for travel and restaurants



1% for everything else, including your Costco purchases

Access to an interactive rewards calculator to determine how much cash back you will get with each purchase

The ability to set automatic alerts to your cell phone

One year warranty extensions. Purchase an item using your True Earnings Card, and if it has a warranty of five years or less, the card will extend the warranty by up to one year.

Replacement of broken or stolen items. If you purchase an item on your card and it is broken or stolen within 90 days of the purchase date, the True Earnings Card will replace it for you.

Travel benefits including Roadside Assistance, Car Rental Loss or Damage and Travel Accident Insurance. However, the card owner must pay for some of these services such as Roadside Assistance.

While this is a card rich in rewards, there are some drawbacks:

When you cancel your card, you forfeit all rewards for the year.

The reward is given once a year, in February, and must be redeemed at Costco in person for merchandise or cash.

Rewards are expire in August, so they are only valid for 6 months

This is a credit card, not a charge card, so you will be assigned a credit limit, and if you carry a balance, the interest rate is the Prime Rate + 11.99%.

Is the True Earnings Card right for you?

Costco members should seriously consider this card. If you shop at Costco regularly and use this card for the majority of your other purchases, the cash back rewards will add up quickly. The 3% cash back on the first $3,000 in gas purchases is particularly attractive with the high price of gas. As a rewards card, this one offers many benefits that can’t be beat. Just be sure to pay off the balance each month to avoid the steep APR.