Wednesday, January 21, 2009

The Perfect Credit Card for Costco Enthusiasts

So I've blogged about my love of Costco before (here), so I won't repeat why I think that Costco is the greatest store on Earth.

I've also recently blogged about the benefits of using rewards cards to pay for everything imaginable. In particular, I mentioned that a particular 2% cash back rewards credit card in this post looked really good.

Well, Costco fans, I have news for you. There is a new 2% cash back card American Express card offered through Fidelity (here) which can be used at Costco. I got mine in the mail about 3 weeks ago and am loving getting 4% cash back from Costco (2% from the card + 2% from my Executive membership(though in reality, it's more like 3% due to the extra $50 for the Executive membership).

I spend about $6,000/year at Costco, so doing some quick math, this card will get me $120/year in cash. Since our family is growing, I anticipate my Costco expenditures growing with time, meaning that this $120/year will also grow.

This card is much better than the 1% cash back card that they advertise within the store (here).

I realize that the Fidelity Retirement Rewards card is advertised as a retirement card which deposits your cash rebate into an IRA, but the fine print says that you can deposit your rewards into a normal brokerage account. Translation: you can turn your rewards into cash by pulling the rewards out of the brokerage account. More comments on the card here.

Obviously, this card will also be pretty good outside of Costco as well, provided the merchant accepts Amex. I've only run into a few vendors in the past month who haven't.

I'd like to reiterate my appreciation of consumers who pay interest on credit cards, helping to fund my 2% rebate and 30-day interest free loan on every purchase that I make (and I'd also like to thank the merchants, who help foot some of the bill too).


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