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Costco TrueEarnings American Express Credit Card: Earn Costco Vouchers

The Costco TrueEarnings American Express Credit Card offers 1% cashback rewards on general spending, plus bonus categories with 2X rewards on travel spending and 3X rewards on dining. The card is targeted at Costco shoppers, since the “cashback” is actually given in the form of a Costco voucher, delivered once a year.

Costco TrueEarnings Features

  • Earn 3% on restaurant dining
  • Earn 2% on travel bookings
  • Earn 1% at Costco and other spending
  • Must hold Costco membership and requires visit to a Costco to have photo taken
  • Doubles as Costco membership card
  • Cashback given in the form of a paper Costco voucher at the end of each year with the card
  • 0% purchases for 6 months
  • No annual fee
  • 19.9% variable APR

Pros...

  • 3% cashback rewards on dining
  • 2% cashback rewards on travel bookings

Cons...

  • Must be a Costco member
  • Must be able to visit a Costco store to get your photo taken
  • “Cashback” given in the form of a paper Costco voucher once a year

Costco TrueEarnings Credit Card Review

The Costco TrueEarnings American Express Credit Card offers "cashback" rewards to cardholders on their spending. General purchases will earn 1%, with bonus categories of travel and dining earning 2% and 3%, respectively. If you know roughly how much you spend a month on restaurants, the chart below will give you an idea of the cashback you’ll receive at the end of the year from your dining spend:

Monthly Dining SpendAnnual Dining Rewards
£200£72
£500£180
£1,000£360

There is no cap on rewards earned through dining or travel booking. While there is a £300 cap on rewards earned elsewhere on general spending, we wouldn’t expect most people to reach it. In order to hit this cap, you’d have to spend £30,000 a year on the card (outside of dining and travel).

Rewards are distributed as Costco vouchers. Therefore, when considering this card, think about your proximity to a Costco location and the likelihood you will be able to spend your rewards.

The Costco TrueEarnings card is only available to Costco members. If you are not already a Costco member, you need to become one. As the card will act as your Costco membership card as well, you need to have your photo taken at your nearest Costco. Once your membership and photo are in the Costco system, American Express can process your application. You will still have to pay the annual Costco membership fee.

Be sure to pay on time - you will lose all accumulated cashback for the year if you miss two consecutive monthly payments. Once your payments are up to date again, you will start earning cashback rewards again. That said, like all rewards cards, you should pay off your full balance every month anyway, or the interest payments will quickly wipe out your rewards, and then some. In order to be accepted for the Costco TrueEarnings card, you must have had no County Court Judgments for non-payment of debt.

Bottom Line: The Costco TrueEarnings credit card delivers rewards of 1% on general spending, 2% on travel bookings and 3% on dining. Think about the suitability of this card for you individually, as rewards are distributed as Costco vouchers that can only be redeemed in store.

Costco TrueEarnings Example of Average Annual Rewards

The Costco card will deliver different rewards for everyone, depending on their individual spending patterns. Consider the rewards a cardholders would earn from the following example of monthly spending:

Monthly SpendReward RateMonthly Rewards
Grocery shopping£3501%£3.50
Gas£501%£0.50
Other everyday spending£4001%£4
Dining£3003%£9
Travel£2002%£4
Total Monthly Rewards£21
Total Annual Rewards£252