Costco True Earnings AMEX vs. SPG AMEX

[Denise L]

Hi there,

I am trying to figure out which credit card is better for rewards. I've had the SPG AMEX for years, but the fees have gone from $30 to $65/year, I believe. I use those points to convert to Hawaiian Airlines miles so that for every 20K I convert, I get 25K miles.

Now this Costco True Earnings AMEX is available with no annual fee. Supposedly we get a 3% rebate on gasoline purchases, plus between 1-2% rebates on other purchases. Reading the fine print, it sounds as if the cap on gasoline purchases to qualify for the 3% rebate is $3,000, but the agent on the phone told me that as long as each purchase is $75 or less, there is no cap. I have no idea which to believe.

We spend a lot on gasoline so a 3% rebate *sounds* interesting. For those of you who have done the math, which sounds like the best card to use? We have to use an AMEX at Costco since it is the only card they take. Otherwise, we often use our United Mileage Plus VISA for all other purchases.

Simple math could be this:

$5000 on gasoline = Costco rebate (assuming no cap) = $150 cash, or the equivalent of 5000 Starpoints which can convert to 6250 Hawaiian miles. We use 35,000 Hawaiian miles to fly round trip, saving about $700 or more in airfare. That's about .02 per mile. If multiplied by 6250, it's $125 worth of airfare.

So is it basically a wash (almost)?! Unless I count the annual credit card fee of $60-65 for the SPG AMEX, and then I am better off taking the cash rebate.

 

[ciscogizmo1]

I'm was thinking about ditching the American Express card or using a different airline to go to Hawaii. Hawaiian only offers the discounted points to the 1st purchase and then, after that all the points go up. For example, I got 1 ticket one way to Oahu for 17,500 but had to pay 30,000 for the remaining 3 tickets. I'm not seeing the savings anymore.

Basically, it is getting harder to get 4 tickets round trip to Hawaii on points unless I'm missing a trick which is totally possible. I use to be able to go for a family of 4 for 140,000 points and now it is costing 215,000 points.

I use my American Express card at Costco but I have the Executive Membership which gives you 1% back I think. I can't remember but it generally pays for my membership every year. I do all my grocery shopping there pretty much and Trader Joes for the rest.

I'm interested in what other people use as I just might use another airline or switch cards completely...

 

[DeniseM]

Denise - it is my understanding that you DON'T get the 3% on gas - unless that is something new.

 

[Elan]

Costco AMEX is 3% on the first $3K in gas. 1% on gas thereafter. I believe the $75 figure is the limit per fill. 2% back on restaurants and travel expenses. 1% everywhere else. No limit on rebate.

 

[Denise L]

Denise - it is my understanding that you DON'T get the 3% on gas - unless that is something new.

Hi Denise,

This is from the website:

Earn True Cash Back the Simple Way
Earn Cash Back: 3% for the first $3,000 in annual gasoline purchases (1% thereafter), 2% for restaurants, 2% for travel, and 1% everywhere else, including Costco
No limit on the amount of cash back earned
Enjoy 2 Memberships in 1: your TrueEarnings® Card is both an American Express® Credit Card and your Costco membership card
No annual fee with your paid Costco membership

 

[LAX Mom]

I have the Costco AMEX card and use it for purchases at Costco & gas. I get 4% back on gas (because I have an executive membership with Costco?). If you buy a lot of gas you might want to check out that option.

 

[janej]

I have both cards and used to use the Costco cards more. Now I am using the SPG one more and more. I found it a very good value when it comes to hotels. Even though I am a Marriott Platinum member and use Marriott as much as I can, I found the SPG points have much higher value when it comes to hotels.

For example, we stayed at the Sheraton Suites Calgary Eau Claire for Stampede and paid 4000 points + $60. The cash rate was over 400 CAD. I just got Four Points by Sheraton Chicago O'Hare Airport for 1600 points + $30. The cash rate was over $100 per night.

 

[beejaybee]

Costco Amex for me

Decided to dump our Amex Gold- really did nothing for me over the time I had it in terms of "bonus" points, and I figured it was time to save the $150 annual fee plus my primary purpose for the card was to transfer the miles to my Continental account. Now Continited is no longer partnered with them, so there was another compelling reason to switch.

Consideded the Starwood Amex, but the promo points weren't as generous as in the past, so went w/ Costco. The savings in annual fee in addition to money back should help cover the cost of airline tix plus mileage can be accrued for tix purchased.

 

[caribbeansun]

Doesn't it really boil down to whether or not you can get more than 2 cents a point from the SPG card in order to compare it to a cash back card?

I regularly get 4-7 cents a point from SPG so a 2% cash back is of no interest whatsoever to me.

 

[davhu1]

Now this Costco True Earnings AMEX is available with no annual fee. Supposedly we get a 3% rebate on gasoline purchases, plus between 1-2% rebates on other purchases. Reading the fine print, it sounds as if the cap on gasoline purchases to qualify for the 3% rebate is $3,000, but the agent on the phone told me that as long as each purchase is $75 or less, there is no cap. I have no idea which to believe.

We have the Costco TrueEarnings Busness. 4% rebate if less than 65 gallons per transaction and capped at $6,000 per year. >65 gallons is 1%.

 

[LAX Mom]

We have the Costco TrueEarnings Busness. 4% rebate if less than 65 gallons per transaction and capped at $6,000 per year. >65 gallons is 1%.

That's what I have.....Costco TrueEarnings Business.
I previously posted that it was Executive Membership that gave me 4% back on gas. That's not correct, it's the TrueEarnings Business card.

 

[regatta333]

It is 3% cash back on restaurants.

 

[dougef]

It is 3% cash back on restaurants.

not any more - just changed to 2%

 

[heathpack]

Of course cash is the most flexible reward there is and if you can get more cash value from the Costco that is the obvious choice. However, I am gaga over that SPG Amex. The ability to book hotel rooms, transfer to various FF programs and buy plane tickets outright (and earn FF miles on those purchases) gives me such tremendous flexibility that I find this card invaluable.

H

 

[MOXJO7282]

We use our Amex Blue for 5% on gas, grocercies and drug stores (after $6500 )and the Costco for 3% on restaurants. I don't believe either has a annual fee.

 

[regatta333]

not any more - just changed to 2%

I am looking at my most recent statement and the % used for both gas and restaurants is 3%.

 

[janej]

transfer to various FF programs and buy plane tickets outright (and earn FF miles on those purchases) gives me such tremendous flexibility that I find this card invaluable.

H

How do you buy plane tickets outright and also earn FF miles. I love to use the points on hotels. But I got a lot more points than I can use on hotels because we stay in timeshares most of the time and Marriott hotels also.

 

[capjak]

The other card to look at is AMEX fidelity as it is 2% on everything. Of course you need to open an account, which dependent on the deposit you can get miles as well.

and of course you can use it at costco

 

[cotraveller]

It is 3% cash back on restaurants.

not any more - just changed to 2%

I am looking at my most recent statement and the % used for both gas and restaurants is 3%.

I looked at my Costco Amex statement too. 8/21/2011 closing date. It shows 3% cash back on restaurants. I looked at my account online and under benefits it shows 2% cash back on restaurants. Then I went back an looked at some old statements. The June statement has a notice to see page 10 for a Notice of Changes to the True Earnings program. I don't keep all those extra pages but they are online. Page 10 of the June statement includes the notice:

With billing periods starting in August 2011, we are reducing the reward percentage earned for eligible purchases at restaurants from 3% to 2%. Accordingly, effective with your billing period starting in August 2011, in the Supplement to the Cardmember Agreement describing How Your Reward Program Works, "3% for eligible purchases at restaurants" is deleted and replaced with "2% for eligible purchases at restaurants". However, if your account was opened between August 1, 2010 and July 31, 2011, you will continue to earn 3% on eligible purchases at restaurants until the start of your 13th billing period. You will then earn 2% on eligible purchases at restaurants as described in the Agreement.

I guess I need to pay more attention to the notices on the statement.

 

[heathpack]

How do you buy plane tickets outright and also earn FF miles. I love to use the points on hotels. But I got a lot more points than I can use on hotels because we stay in timeshares most of the time and Marriott hotels also.

There is a feature of the SPG program called SPG flights. You can use your SPG points to buy a plane ticket, the number of points you need to use depends on the cost of the ticket. Because SPG is basically just buying you a plane ticket, you earn FF miles for the flight. The best value for this is long haul flights during an airfare sale, like the recent sales to Hawaii. You also avoid the BS of needing to scramble to book 339 days ahead, which is hard to do with TS travel. SPG flights is also a great option if you only have enough FF miles to get one award trip, you can just "buy" the second one with your points.

For example, last year we went to Oahu. I booked a Delta RT ticket for Mr. H using my Delta FF miles. Then I booked myself RT tickets on the same flights using SPG Flights. We also stayed 3 nights for free at the Royal Hawaiian, compliments of SPG.

The program is very flexible and easy to use, totally love it.

H

 

[Eli Mairs]

I found the SPG points have much higher value when it comes to hotels.

I agree. For us, the best SPG points value is for European hotels. We cruise in Europe often and stay at Starwood properties pre or post cruise. The hotels are historic, beautiful and expensive. In October we are staying at Hotel Gritti Palace in Venice on points. The cash rate for our stay is 771 euros per night.
Our Canadian SPG amex card gives a free category 4 night after a certain amount of spending, which isn't difficult to attain, as I use it for everything. Rarely use cash anymore.

 

[Laurie]

I looked at my Costco Amex statement too. 8/21/2011 closing date. It shows 3% cash back on restaurants. I looked at my account online and under benefits it shows 2% cash back on restaurants. Then I went back an looked at some old statements. The June statement has a notice to see page 10 for a Notice of Changes to the True Earnings program. I don't keep all those extra pages but they are online. Page 10 of the June statement includes the notice:

With billing periods starting in August 2011, we are reducing the reward percentage earned for eligible purchases at restaurants from 3% to 2%. Accordingly, effective with your billing period starting in August 2011, in the Supplement to the Cardmember Agreement describing How Your Reward Program Works, "3% for eligible purchases at restaurants" is deleted and replaced with "2% for eligible purchases at restaurants". However, if your account was opened between August 1, 2010 and July 31, 2011, you will continue to earn 3% on eligible purchases at restaurants until the start of your 13th billing period. You will then earn 2% on eligible purchases at restaurants as described in the Agreement.

I guess I need to pay more attention to the notices on the statement.

Or, read TUG for the latest news! I don't ever read those notices...

I called cust svc after looking over some of the ppw because I was sure ours was 3%... just recently had even bothered to read up on the %'s and just started using it for restaurants. Yup, it changes to 2 as of August, too bad.

Also there are lots of disclaimers on the gas - such as convenience stores are excluded (where I usually buy my gas and recwently switched to using this AmEx), and big grocery stores and superstores. Only Costco and standalone gas stations qualify. I'll go back to using my CapOne for my gas.

 

[Sandy VDH]

Also there are lots of disclaimers on the gas - such as convenience stores are excluded (where I usually buy my gas and recwently switched to using this AmEx), and big grocery stores and superstores. Only Costco and standalone gas stations qualify.

It actually depends on the how the retail location is coded. I know I use a retail location that if I pay at the pump it is considered gas, but if I go in the shop and pay at the counter it get considered sundry.

So not all gas stations, with convience store get coded wrong. I have gotten my 4% (Business Amex) plenty of times.