Getting Used To A New Credit Card

We recently signed up for the American Express Costco credit card.  The main reason is that you get 3% cash back on gasoline purchases. With the camper coming out of storage recently and planning a few trips, we know that we’ll be spending quite a bit on gas this summer, and looked for a card that would do the best to offset some of those costs.

The Costco card was definitely the right choice.  I’m all about getting cash (even though Costco makes you get the cash at their service desk, that’s fine with me) and not any sort of points or mileage or anything like that.  I know that some rewards might pay more at first but they tend to lower the rate after a few months or move you to rotating categories.  For gas, I wanted something that didn’t do much changing, and so far as I could tell, the Costco card has been offering the 3% back for a number of years now.

Still, this is our first true American Express card, so there were a number of things that were different when it came time to paying our credit card.

Billing Cycle – The billing cycle was slightly off from our Citi Dividends cards.  This is no big deal,as I pay off all the credit cards at the same time, but because the cycle closed a few days later, our gas costs for the month were slightly higher since there were a few extra days.   No big deal.

Reward Wait Time- The Citi card gives you the cash back in your ‘account’ right away, where the American Express delays the reward by a month.  So, our reward for the first month didn’t show up until a full month later.  This was important to me because I wanted to make sure that the gas stations we typically use were classified correctly (they were) but it took a full month from our first statement to get this verification.

No Early Payments – Most of the stuff we purchase with our credit card fall into distinct categories: Groceries, Gas, Cell Phone Bill and a couple of others.  If we have a ‘large’ purchase, we’ll put it on the card and I will often just pay that portion right way.  This keeps the budget categories in line and gives us the cash rewards. American Express won’t let you pay early, as they will only let you pay based on your last statement date.  Everything else is pending.

None of this is a big deal, but it’s interesting to see the slight differences.  They’re not at all overwhelming, but it makes me realize how quickly things could get out of control if you kept adding different cards. We only have a couple of credit cards that we deal with, but I can imagine that there are plenty of people out there who have so many cards that it gets very easy to miss billing cycle dates or limits or other things.  That’s why we took a lot of time to make sure that getting another card was the right decision for us, and I would encourage anybody using more than a couple of cards to consider simplifying.

Have you found yourself with credit card overload?

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8 thoughts on “Getting Used To A New Credit Card

  1. I love getting new cards that have better rewards than I previously had, especially ones without any annual fees.

    Have you thought about the PENFED gas card? It gives you 5% cash back on all gas purchases.

    • I haven’t. Is it for a limited time? Sometimes they’ll start you off with a high percentage and then cut you back after a few months. Not interested in that.

    • We use the Target card as well. We get our baby formula and lots of diapers from there now and that saves up quite a bit. It’s basically like getting free sales tax.

  2. I also have and use the Costco American Express Card, and it seems to me that I can make early payments. I often pay as soon as the billed amount shows up on my card as opposed to only making payments based on your my last statement date. I currently even have a small positive balance.

    I just go to the payment amount and have a choice of minimum payment due (which I have never used), current balance and other amount.

    • I’ll have to look again. No big deal if it doesn’t allow me and if I missed something, maybe I’ll catch it next time. Either way, not a big deal.

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