Pardon my enthusiasm, but I have been using the Costco Card from American Express for the past six months, and I think it is terrific.

I admit, I tend to like all things Costco. It is my primary source for groceries(milk is a dollar less than grocery stores), prescriptions, tools, office supplies, toys, books, jewelry, etc. The reason that I like Costco so much is because the items are almost always top quality, and almost always the best price. I do not have to worry that they have a few loss-leaders to attract business, with the balance of items at rip-off prices, as is the case with other stores. I am comfortable with the notion that whatever I buy, it is a bargain, or at least a fair price. For even better bargains, I look for the Kirkland Signature (store brand) label. These items must be made by brand-name manufacturers, because the quality is great. Their return policy is excellent as well; never any questions asked.

When Costco began offering a credit card from American Express, I was eager to take advantage of the 1.5% rebate, so I applied right away. Much to my amazement, I was initially turned down. I hold many other credit cards(including another American Express card), and do not carry a balance on any of them. I was undaunted by my initial rejection, and decided to appeal the decision. Although I am still unclear as to why my initial application was rejected, my second attempt was successful.

The Costco card can be used at Costco, as well as any other establishment that accepts American Express. The card is free, and your Costco membership is charged on it annually. The card doubles as your membership card as well. Since it is the only credit card that Costco accepts, I think it is a must for Costco members who like to charge and earn rewards. While I admit that I can sometimes go overboard in my Costco spending, it is due to the bargains and selection available, not the fact that I am using a credit card. People who have trouble with overspending on credit cards in general should certainly not use any credit card, including this one.

The rebate on this card can go as high as 2%; the extra .5% kicks in if you carry a balance. Lower percentages apply if you charge less than $2000 annually. The reward given is in the form of a Costco credit. For someone like me, who is a frequent Costco shopper, the annual rebate could easily pay for one Costco shopping spree.

In my opinion, the Costco Card is a great way to earn credit at a store where I like to shop anyway, as well as earning credits elsewhere. I highly recommend this card; it has become my primary credit card.

Recommended: Yes