AmEx/CostCo True Earnings Credit Card
 

I'm looking into changing credit cards and would really appreciate some advice. I've read all the recent threads about credit cards, and the consensus seems to be American Express Blue is the best for rewards, however I'm considering this CostCo card from AmEx:

TrueEarnings Card from CostCo and American Express

AmEx Blue is 5% for groceries/gas/drugstores if you meet the required $6,500 on those purchases a year, and 1.5% on everything else if you spend $6,500 on those a year. I'm sure I meet the "everything else" $6,500 requirement for 1.5%, but it's really close whether or not I spend $6,500 a year on only gas, groceries, and prescriptions.

Or am I confused here, and as long as you spend $6,500 period, you get both the 5% gas/groceries/drugs and 1.5% everything else?

AmEx Costco is 3% gas, 3% "restaurants" (can't find their definition of restaurant anywhere - is McDonald's a restaurant? Steak'N'Shake? Where is line drawn?), 2% travel, 1% everywhere else.

Beat: You have to be a CostCo member, and I've never shopped at a place like that or Sam's Club.

Bottom line, three questions:

Which has the higher EV for most people? I'm assuming AmEx Blue. Approx how much do you have to spend in restaurants to make this card worth that extra 1.5%, and worth losing 0.5% on other purchases?

CostCo: Opinions? I've read a thread or two in the past and tried searching, but I'm horrible with archives and theres nothing recent. Is this type of place worth paying a membership for, or is Target just as good? I've read all sorts of threads with people tilting about overcrowded CostCo's.

Is there something better? Really, all these companies offering different rebates, cashback, frequent flier miles that expire, everyone claiming different percentages etc. is confusing for the layman. What am I best off with? Majority of $ spent in restaurants, and on coke hookers etc obv.

Re: AmEx/CostCo True Earnings Credit Card
 

It's after $6500 total spending that Blue Cash Card kicks up to 5%/1.5%. Before that it's 1%/0.5%.

I think the benefits of Blue Cash Card would be better for most people. Maybe heavy travelers would benefit from the Costco card, but if you are a heavy traveler there are probably many better cards (air miles/hotel rewards type cards). I guess if you spend way more on eating out than groceries or gas, then it may be better too.

Keep in mind Costo membership is like $50-60/year so that eats into your cashback if you aren't going to even use it.

EDIT: I have Blue Cash, don't drive a ton of miles but have a gas guzzler and cook most of my meals. I'm at 31% spending on gas/groceries right now. I got back $215 last year and this year I'm doing nearly everything on the card and should reach $500ish.

Re: AmEx/CostCo True Earnings Credit Card
 

Oh yeah, important item of note about the restaurant thing...restaurants are by far the #1 place I run into that don't take AMEX. Especially Asian restaurants. It's like 75% "Visa or Mastercard only" at Asian places.

Re: AmEx/CostCo True Earnings Credit Card
 

Not sure where the posters in this thread live, but I'm in vegas and have been using the costo card for three years. I've never been in any restaurant in that three years that doesn't take AmEx. There are a few small businesses that don't like the place that we get our dogs bathed and a manicure place.
The "don't take AmEx fear" I think is overblown - I just went on a week long road trip to Park City and Yellowstone and the whole time the only place that didn't take AmEx was the boat ferry to cross Jenny Lake in Grand Teton, i.e. we were in some pretty obscure places and it wasn't a problem.

I am also curious about this topic - I charge about 50K a year - should I switch to this blue card thing? I had never heard of it before this thread. I love costco so the membership $$ isn't an issue.

Re: AmEx/CostCo True Earnings Credit Card
 

Well, I did say it was pretty much Asian restaurants, and I guess my frustation with them lately has skewed my thoughts on the subject. Here's since the beginning of June, what I've had to put on a Mastercard because AMEX was rejected...

7/7/2008 MC-ONO HAWAII BBQ LOS ANGELES - Hawaii/Korean place
7/1/2008 MC-SUSHI CENTRAL LOS ANGELES - Sushi Place
6/30/2008 MC-BRIDGE LA 000003947 LOS ANGELES - Large movie theater (this was a huge WTF)
6/23/2008 MC-PHO 99 WEST L.A. W LOS ANGELES - Vietnamese Place
6/16/2008 MC-U ZEN SUSHI LOS ANGELES - Sushi Place
6/3/2008 MC-KRUANG TEDD LOS ANGELES - Thai Place

Re: AmEx/CostCo True Earnings Credit Card
 

Thanks, DonkeyKong.

I would estimate that I spend about $100/mo on gas, and maybe $100/mo on groceries. I blow about $600/mo on restaurants.

I think I'm still just gonna go with AmEx Blue though. Extra 1.5% on Restaurants = $108 a year.

Extra 2% on gas + 3.5% on groceries = $66/yr, plus I'm not forced to deal with CostCo, plus an extra .5% on everything else.

Re: AmEx/CostCo True Earnings Credit Card
 

Question: Do you Costco'ers feel like you're saving money? I'm a college student and wondering if I should switch to shopping there in addition to local grocery store. I'd have no reason to go there other than saving money

Eat a lot of healthy food but not a lot of the stuff I've seen for sale there (huge boxes of cereal, granola bars, etc.) Would I save money buying frozen chicken, ground beef, fruit/veggies, oatmeal, potatoes, etc.?

Also is their gasoline generally cheaper?

Re: AmEx/CostCo True Earnings Credit Card
 

Try these calulators (if the links don't work, go to the AMEX website and find them):

Blue Cash

Costco Card

Re: AmEx/CostCo True Earnings Credit Card
 

Food is cheaper typically, but must be bought in large quantities. Spoilage would probably be a big problem for a single college student unless you freeze a bunch of the stuff. You also need to not be picky with brands and stuff. They have what they have. You aren't getting a full cereal selection or anything.

Gas is typically ~$0.10/gal cheaper than even the lowest places around here. Not sure how that holds elsewhere.

Re: AmEx/CostCo True Earnings Credit Card
 

So I'm taking it I can't put my mortgage payment and utility bills on AmEx?

Re: AmEx/CostCo True Earnings Credit Card
 

Mortgage...probably not. Not even sure if it's legal to pay those on credit, even if a mortgage company wanted to allow it.

Utilities...depends. I think my one of my utilities accepts it, the other only allows check or direct debit of a bank account.

Re: AmEx/CostCo True Earnings Credit Card
 

Don't forget costco.com in the equation. I order tons of stuff on there - totally different stock than is in the warehouse.

They also have alot of services /stuff people don't always realize:
Things I have gotten from costco off the top of my head:
cell phones/ service
a lexus IS350
plasma tvs
directTv and the HD boxes
tires (and when I got a nail in one fixed for free)
furniture
my wife buys all her books there
booze
salt for the water softener
lawn mower
etc etc

I guess what I'm getting at is that between the warehouse and the online store you can get almost anything. And even if the price isn't lower (and it usually is) it is almost NEVER higher, so I don't need to shop around which saves time and piece of mind.

Re: AmEx/CostCo True Earnings Credit Card
 

It's unlikely you can put your mortgage on Amex, but possible. I recall last year they started working with at least one particular bank to allow credit card payments. If your mortgage is with that bank, you're in luck. Don't recall which one it is right now, obviously.

Here in Vegas, water is the only utility that accepts credit card payments, and they don't take Amex.

Re: AmEx/CostCo True Earnings Credit Card
 

You might consider the Chase Freedom card as well. It gives you 3% back on your top three spending categories each month. Could be gas, groceries, department stores one month and three other things the next month. You get 1% on everything else. Also once you have earned $200 worth of rewards you can use them for a $250 check so there's a 25% bonus. It is also a Visa so its accepted more places than an Amex.

Re: AmEx/CostCo True Earnings Credit Card
 

Re: Costco

Costco is great if you use it responsibly. Buying in bulk can save you a bunch. Plus they have decent prices on things like clothes, books, etc. Most have some decent prepared foods, depending on your preferences. You can also get reasonably priced electronics, jewelry, and even travel (!?!) either in-store or online; many costcos have a tire center, and many have a gas station which will save you a few cents a gallon if you leave near enough to make going there for gas worth it.

That said, it's very very easy to go to costco without a list or a solid idea of what you want, spend $200, and get home going "Man, WTF did I just spend $200 on?"

If I were you, I'd try to find someone to split a membership with -- maybe a parent or something. If it's not family, then you can get a business membership (for your "business") and put one of your "employees" on it. You should double check the requirements for that membership.

Or really, just go for a day and check the place out. Bring a pad of paper and price things you normally buy or might want to buy in the future. Then compare to normal at-home prices.