Last week I posted that I was looking for a good credit card which offers cash rewards specifically to improve upon the 1% we get for gas purchases on our current Citi Dividends card.
Two stuck out as the favorites, the Pen Fed card (which is for military based people but you can get around that pretty easily) or the Costco American Express True Rewards card.
My dad and a good friend ended up backing the Costco card pretty strongly, and the fact that we’re Costco members means that there’s no charge, so I’m pretty sure that’s what we’re going to get.
Basically, the card offers 3% on gas purchases, 2% on other categories (I think eating out is one) and 1% on everything else.
I did some research and it looks like they’ve had this for awhile, so while there are no guarantees, the fact that these payouts are in place seems to bode well for the long term viability of these percentages.
It’s not a straight cash rewards program. They send you a reward certificate once per year that you have to redeem in the store. You can either get cash there or get a Costco gift card. Since we do a once-per-month Costco trip, this should work out just as easily as cash. We can just use the gift card that we get to pay for our purchases, and take that budgeted amount and funnel it into the earmarked portion of our savings account which we use for rewards. Easy as pie.
My wife is nervous about adding one more card to the mix. I don’t think we’re too card crazy, so while this is another thing to keep track of, I think the extra bucks we’ll get in reward money will make it worth the hassle, especially since we’ll be consuming a lot more gas given the camper purchase we just did over the fall.
What do you think? Are we making a good choice? Am I putting too much effort into what will likely amount to a few bucks difference per month?