Review: Costco True Earnings AMEX Card
With hushed whispers foretelling economic gloom and a full-out recession on the horizon, Americans are justifiably concerned about getting the most they can from their hard-earned money. It is in such situations as these that many consumers look to cut costs and save on expenses by looking to wholesale establishments to make their purchases. By paying an annual fee to gain access to the wholesale warehouses, members can save by purchasing their goods in bulk. Even when there’s no recession, wholesale clubs have always appealed to my penny-pinching personality, and I gladly fork out the yearly membership fee in exchange for better overall pricing.
One of the largest wholesale clubs in America is Costco, and it happens to be my wholesale club of choice. I buy everything at Costco: groceries, clothes, gas, tools; even hearing aid batteries! My one major gripe with Costco in the past was that they wouldn’t accept any of my credit cards (all of which were VISA or MasterCard), forcing me to use my debit card instead. I like free stuff (who doesn’t?) and rewards for using my credit cards responsibly, thus I always grumbled when I saw how a large portion of my expenditures weren’t earning me anything!
Enter the Costco/AMEX True Earnings Card.
Not only is this credit card accepted at Costco, like all American Express cards, but it earns you rewards for using it at Costco! And not just any rewards, but arguably the best rewards: cold hard cash back without any limitations on the amount you can earn. Let’s take a gander at how much you can earn with this card:
3% cash back for gasoline – Okay, this is a major plus for me, because General Sherman, my extremely temperamental Buick LeSabre, isn’t exactly fuel efficient. Let’s just say that if I treat him well I get gas mileage that borders on the lower end of abysmal. Now I’ve been aware of the General’s drinking problem for some time now, and so I’ve always purchased my gas from Costco using my debit card. Now with the True Earnings card, I get back 3% of my gas money back!
For the curious, let’s break down what this means for me: I spend around $100 on gas each month (I drive as little as possible). Thus, over the course of a year, I spend $1,200 on fuel. However, if I use the True Earnings card, I get back $36 at year end; not a huge amount, but that pays for most of my membership costs right there.
3% cash back at restaurants – Whether you’re a terrible cook or just lazy, Costco understands, and compensates you appropriately for your desire to eat out. I probably spend about $50 a month eating out (I know, this is nothing compared to some of you). Yearly expense: $600; cash back: $13
My total earnings so far? $49
1% cash back at all other locations, including Costco – Hey, it’s not a huge percentage, but it includes Costco purchases, and that’s what matters to me. I shell out about $200 per month at Costco. Yearly Expense: $2,400; Cash back: $24
My total earnings so far? $73.
Alright, and what’s the cost of my annual membership at Costco? About $54, including taxes. As we can see, by using the True Earnings card I essentially get a free wholesale club membership once you factor in the cash back.
Free access to cheap food, cheap gas, and cheap hearing aid batteries? You can count me in.
If you think this card might suit you, apply online for the card at the American Express website.







You may want to look into Executive Membership. It costs an extra $50/year, but you get an additional 2% back on purchases at Costco. If you’re really spending $200+ per month at Costco, you’re very close to the break-even point ($2500/year).
Thanks for the tip, Elliot - I wasn’t aware of the different levels of Membership. As you say, this is really worthwhile for anyone spending over 50$ a week at Costco.
Having said that, I did some extra reading and it turns out the Executive Membership rebate is capped at $500. Granted, you would have to spend over $25,000 (!) to reach the cap - but I wonder if they’ve got a loophole in there that would enable them to apply the cap to your AMEX True Earnings purchases as well…
There is no loophole, they are seperate programs. Furthermore, everyone should at least try a executive membership for one year because it is risk free. If you dont break even, then ask for your money back at the end of the year. Simple as that.