The American Express True Earnings credit card is a Costco affiliated cash back credit card that is one of the better no annual fee credit cards (if not THE best no annual fee cash back credit card). The AmEx True Earnings card offers a minimum of 1% cash back on every single purchase with no limits and up to 3% cash back in certain fixed categories like gas, travel, and restaurants. Read the detailed American Express Costco True Earnings credit card review below and then be sure to use our free credit card comparison tool to compare many different credit card offers and find the one that is best for you.
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True Earnings Cash Back Rewards
The American Express True Earnings cash back rewards are virtually unparalleled even when you throw in as a comparison cards with very pricey annual fees like the Visa Black Card or the Escape by Discover Card! Here is how the True Earnings rewards structure breaks down:
- 1% UNLIMITED cash back on every single purchase with no minimum spending requirements, no earnings caps, and no tiers.
- 3% cash back for all gasoline purchases up to $3,000 for the year (after the $3,000 mark then it goes back to the guaranteed minimum 1% cash back level.
- 3% UNLIMITED cash back on all restaurant purchases (this even included fast food so getting 3% cash back at the McDonald’s, Wendy’s, and Burger King drive through windows is a great thing – for your budget that is – though not necessarily for your waist line!)
- 2% UNLIMITED cash back on all travel purchases (airplane tickets, rental cars, hotels, you name it – if its a travel purchase then the True Earnings cash back card will give you 2% cash back).
(NOTE: When you hear the word “Costco” in the name of the card it may cause you to think that this card only receives cash back on Costco purchases but that is not the case. ALL purchases are eligible for the above 1% to 3% cash back both from Costco and from anywhere else).
The cash back rewards for the True Earnings card is paid annually every February in the form of a Costco coupon that can be redeemed either for merchandise OR for cash (a great strategy for maximizing your cash rewards is to just redeem your Costco rewards coupon for cash and then turn around and use your card to make your Costco purchases so you can get even more 1% cash back rewards!) . This brings us to the next unique thing about this card: Costco membership.
Costco Membership
While there is no annual fee for the TrueEarnings Card from Costco and American Express there is a requirement that the cardholder must be a Costco member. The credit card doubles as the cardholders Costco membership card. Costco memberships run $49/year (or less depending upon if you use one of the many coupons floating around online). When you go to apply for the American Express True Earnings credit card you will be required to enter your Costco membership number so if you are not a Costco member then you must first apply online for a Costco membership and then apply for the credit card.
Additional Cardholders
Additional cardholders can be added for no extra charge and with the 3-2-1 cash back percentage spending tiers it can be a great strategy to have each spouse have their own card. This way one spouse can be earning 3% cash back while filling up the tank at the gas station and the other spouse can be getting 3% cash back while grabbing some food for lunch.
o% APR on Purchases
This card also offers 0% APR on all purchases for the first 6 months which is certainly a very nice feature for qualified cardholders.
$25 Statement Credit
American Express will give a $25 statement credit with the first purchase made with the card.
No Balance Transfer Fees
While the TrueEarnings card is primarily characterized as an awesome cash back credit card it does also have one of the better balance transfer options out there because although the balance transfer is subject to an APR there are NO balance transfer fees. Most balance transfer credit cards that offer 0% balance transfers have fees that range from 3% to 5% of the amount transferred so the lack of a balance transfer fee is a nice thing with this card if you are just looking to refinance to a lower rate or you plan on paying off the card balance in full every month.
Is the TrueEarnings Card for You?
Should you apply for the Costco American Express True Earnings credit card? Well, if you have good to excellent credit and are looking for a credit card with no annual fee that offers industry leading cash back rewards of 1% to 3% then you should definitely consider filling out the application. Of course, if you are not a Costco member and have no desire to be a Costco member then you may want to consider a different cash back card like the Discover More credit card. No matter what card you choose be sure and use our free credit card comparison finder on our home page to start “Chasing” down the best credit card offers now!
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