Yesterday, I told you how I’m only going to pay $35 for an Executive Costco Membership. Today, I’m going to tell you how I’m actually going to be getting it for free – and have them pay me.
For a couple years, I had one credit card: my Capital One card. I loved it – it had great rewards and they increased my limit so I was happy with it. However, once I moved into my current house, my feelings changed. I was now getting gas at Costco because it was the closest gas station to my house. They always had a sign above the pump that announced I could get THREE PERCENT BACK IF I USED A COSTCO AMERICAN EXPRESS CARD.
3% sounded really good. I was only getting 1% back with my current card – and 3%! Well if I spent $200 a month on gas, instead of $2, I’d be getting $3 back! Well ok, it wasn’t that much of a difference. But that kind of money adds up! Besides, at that time I was using my debit card to pay for Costco (since they only take American Express) which of course gives me 0% back.
I was hesitant though. I had an American Express card once before and I didn’t like it because so many places didn’t accept the card. I ended up not using it for so long that they closed my account (that’s bad, don’t let that happen to you). But after weighing the pros and cons, I decided to try again. This time, I’d get the American Express card but only use it for Costco purchases and gas.
One of the things I hate most though is that they only send you your rewards once a year – in February. This is a far cry from the immediate view of my rewards I get with Capital One. But I waited and waited and yesterday, it finally came:
That’s $92 I would not have gotten back had I not signed up for the American Express card. To me, that’s worth it. Of course, you have to consider the pros and cons. Making a decision to get a credit card should not be made lightly. I got it because I only had one card at the time, I knew I could pay it off every month, I could take the credit hit and the rewards were worth it to me.
Now, I can put $35 towards the new membership and consider $57 as profit. Of course, it will go right back in to Costco but that’s a lot I’m saving on my next grocery bill.
Do you have a Costco American Express card? What do you think of it?
Young Professional Finances 
Michelle
/ February 17, 2012Wow great deal! I don’t have a card. I’m not sure if we would be saving any money because I’m afraid we would waste food.
youngprofessionalfinances
/ February 18, 2012Well, I use Costco for a lot of non-perishable things: toilet paper, paper towers, water, etc. Of course, I do buy some food (I loved the canned stuff because they last – corn, tomatoes), onions, eggs and even bell peppers are pretty cheap.
I do agree though – it’s hard to know whether you’d be saving money or spending more. Sometimes, I’m not even sure!
Savvy Scot
/ February 18, 2012You guys are so lucky on the other side of the pond with your cashback rewards! We are hard pushed to get even 0.5%!!
youngprofessionalfinances
/ February 18, 2012It’s a double edged sword for me – it’s nice to have the cashback but it also means that we’re spending a lot. But in my mind, I spent this much even before I had the rewards so…it makes sense to add them on!