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The Costco TrueEarnings American Express card – possibly the UK’s best travel credit card – closes

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The next wave of American Express changes is here.

The Costco TrueEarnings American Express card has been closed to new applicants.

It should already have been removed from the American Express website by the time you read this.  If not, it will be gone in a few hours.

This is not hugely surprising.  In some ways, I am surprised it took so long.  A couple of years ago American Express lost its contract to issue Costco credit cards in the US.  This was a huge blow to the company, representing 10% of its global business.

For people who don’t know Costco, it is a US-based chain of – effectively – cash and carry warehouses.  There are 29 sites across the UK.  They sell a huge range of items and whilst the stores may be cheap-looking the products are not – wine buffs, for example, tend to swear by Costco for cheap Cloudy Bay and Dom Perignon.

In theory, you need to be ‘in business’ to become a Costco member.  In practice, their rules are pretty lax and you may well qualify for individual membership.  Anyone who works in finance, or is a retired employee of a bank, qualifies for example.  There is also a long list of professional bodies that are accepted.  If you are self-employed you are definitely OK.  Some big corporates also have company-wide deals for their employees.

Individual membership is £28 + VAT per year.  You should save that pretty quickly.

Why was the Costco TrueEarnings American Express card interesting?

For a small subset of HfP readers, the Costco Amex was very interesting.

There was no sign-up bonus but that was offset by some very generous returns:

No annual fee

1% cashback on all of your spending (capped at £300 per year)

3% cashback on all of your restaurant spending (no cap)

2% cashback on all of your travel spending (no cap)

The only ‘gotcha’ was that, to receive your cashback, you had to visit your nearest Costco to redeem a voucher sent to you annually by American Express.

You can probably see what got people interested.  If you were a heavy traveller, 2% cashback on all of your travel costs could be a significant amount of money.

The only snag is that there was the usual 3% foreign exchange fee. If you were spending money on travel abroad you were better off with an ‘FX free’ card. If you were travelling a lot in the UK, were booking a lot of foreign travel priced in £ or were paying travel bills abroad and getting repaid by your employer, however, this was very interesting.

Even the 1% cashback on all of your general spend was a decent deal given that the card had no annual fee.  Had there been no FX fees on this card, I think it would have been in the pockets of far more HFP readers than it was.

However, the card has now bitten the dust.

Are the Harrods, Starwood Preferred Guest (Marriott Bonvoy) and Nectar cards at risk too? I honestly don’t know:

the Harrods card occupies a very tiny niche and presumably makes little money

the Nectar card is widely held but there is also a Nectar-earning Mastercard issued by Sainsbury’s (with the super-ungenerous rate of 1 Nectar point per £5 spent, 80% less than the Amex card).  Now that Sainsbury’s owns Nectar outright, wouldn’t it prefer to promote a credit card issued by its own banking arm?

Creation is – in theory, but they are now 8 months behind schedule – relaunching the Marriott Rewards Mastercard

None of these three cards is irreplaceable …..

Want to earn more points from credit cards? – January 2022 update

If you are looking to apply for a new credit or charge card, here are our January 2022 recommendations based on the current sign-up bonus

You can see our full directory of all UK cards which earn airline or hotel points here. Here are the top current deals.

There are special sign-up bonuses on both of the BA American Express cards until 28th February 2022. The bonus on the free card is doubled to 10,000 Avios and the bonus on the Premium Plus card is increased from 25,000 Avios to a huge 40,000 Avios.

British Airways BA Amex American Express card

British Airways American Express

10,000 Avios for signing up (SPECIAL OFFER) and an Economy 2-4-1 voucher for spending ….. Read our full review

British Airways BA Premium Plus American Express Amex credit card

British Airways American Express Premium Plus

40,000 Avios (SPECIAL OFFER) and the UK’s most valuable card perk – the 2-4-1 voucher Read our full review

Nectar American Express

American Express Preferred Rewards Gold

Your best beginner’s card – 20,000 points, FREE for a year & two airport lounge passes Read our full review

American Express Platinum card Amex

The Platinum Card from American Express

30,000 points and an unbeatable set of travel benefits – for a fee Read our full review

Earning miles and points from small business cards

If you are a sole trader or run a small company, you may also want to check out these offers.

The bonus on the Capital On Tap card is increased from points worth 10,000 Avios to 30,000 Avios until 4th February 2022.

The bonus on the British Airways Accelerating Business card is increased from 30,000 Avios to 45,000 Avios until 28th February 2022.

American Express Business Gold

20,000 points sign-up bonus and free for a year Read our full review

Amex Platinum Business American Express

American Express Business Platinum

40,000 points sign-up bonus and a long list of travel benefits Read our full review

British Airways Accelerating Business American Express card

British Airways Accelerating Business American Express

45,000 Avios sign-up bonus – plus annual bonuses of up to 30,000 Avios Read our full review

Capital on Tap Visa card

Capital On Tap Business Rewards Visa

30,000 points bonus – the most generous Avios Visa for a limited company Read our full review

For a non-American Express option, we also recommend the Barclaycard Select Cashback card for sole traders and small businesses. It is FREE and you receive 1% cashback on your spending.

Apply 31st March 2022 and your cashback will be increased to 2% for the first three months.

Barclaycard Select Cashback credit card

1% cashback (2% for your first 3 months) and no annual fee Read our full review

Comments (79)

  • Qwerty Bertie says:

    The card is still available, but can the application be completed today? Will I need a Costco number to complete the Amex application, and if so can I get one of those from the Costco application, prior to the required visit to a store for a photo?

    • Relaxo says:

      You need a membership number. Takes 5 mins to buy one off Costco website. Number available immediately. Don’t buy the online membership; may not work on amex application

      • Qwerty Bertie says:

        Thanks very much. In the end I decided not to apply though. Although I was worried I might look back and think I should have got it whilst I could, after listing out all the pros and cons, and some sample numbers, I thought collectively the hassle involved isn’t worth it. If it were a card that could be referred then that would probably have tipped the balance, but it isn’t so I let it go.

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