Today I Upgraded My American Express Card

I went to Costco yesterday and the girl at the returns counter asked me if I’d considered upgrading my card. I currently have the Costco Cash Rebate Credit Card which earns .25% cash back on the first $2,000 spent; .5% on the next $5,500; and 1.5% on all spending over $7,500.

She suggested the new TrueEarnings card which earns 3% cash back on all gasoline (for purchases up to $7,000/year – after that it’s 1%), 2% cash back at restaurants, 2% on eligible travel purchases and 1% on all other purchases.

Neither card has an annual fee.

Hmmm. I only use my American Express for Costco and gas. My use of the card was down significantly in ’12, not because my Costco spending was down that much, but because I had been using Vanilla Visas to buy Costco Cash Cards online.

Alas, that has all come to a screeching halt.

My typical annual Costco spending is around $8,000, but I’m betting it will be less going forward. Definitely under the $7,000 spending cap that applies to some of the rewards of the TrueEarnings card.

So, assuming an annual spend of $7,000 my cash rebate from my existing card would be:

(.0025 x $2,000) + (.005 x $5,000) = $30

With the TrueEarnings card it should look like*:

(.04 x $1,500) + (.01 x $5,500) = $115

* I’m estimating the amount we’ll spend on gas vs. non-gas Costco purchases based on previous year end summaries. And, I’m also assuming I’m only using the card for Costco purchases when, in fact, we’ll probably use it for all gas purchases anywhere.

It’s a no brainer!!!

 

5 thoughts on “Today I Upgraded My American Express Card

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