Chase Freedom

Costco Switches to Visa: What Does the Switch Mean for You?

February 18, 2016 By Amanda Blankenship 8 Comments

The official change from American Express to Visa for Costco customers is quickly approaching. Costco announced that it would change its co-branded credit cards from AmEx to Visa on the first day of April in 2016. However, Costco has pushed the switch back to the summer of 2016, so there is still time for Costco cardholders to prepare for the change. While this big move has been getting plenty of talk, a lot of people seem to be a bit confused by it. What does Costco’s move from AmEx to Visa mean for you?

Costco’s announcement basically stated that the company would no longer be carrying the co-branded American Express credit cards. Instead, its co-branded cards would be through Visa. They will also only be accepting Visa credit cards as well as Visa and Mastercard debit cards, so this is bad news for AmEx cardholders that want to use their credit card when shopping at Costco.

The wholesale retailer and American Express began their partnership in 1999. The American Express partnership, at first, offered a single card to Costco members: The American Express Costco Cash Rebate Card. This card offered tiered cash back bonuses for different amounts of spending by the customer. Each customer would get 0.25% cash back on the first $2,000 in spend, 0.50% cash back on the next $5,500 you spend and 1.5% cash back on spend over $7,500.

Later, the partnership introduced different cards with different cash back bonuses. They were also able to get cash back for certain purchases like gas, restaurants, travel purchases and, of course, offering more cash back for purchases made a Costco.

Keep Your Costco American Express

If you currently have an American Express card through Costco, have no fear! This doesn’t mean that you won’t have an American Express credit card anymore. In fact, AmEx is likely to reach out to those with Costco credit cards and offer them similar cash back credit cards through the credit card company. So, don’t cancel your card. Cancelling a credit card can impact your credit.

Get a $10 Costco Shop Card

Switching to the Costco Visa Citibank Card

The new Costco credit cards will be offering the same rewards as the AmEx card. However, you will not be required to switch (just remember, if you get a new AmEx card, you cannot use it at Costco). You will have to apply for a Citibank card, just as you will have to reapply for an AmEx card if you choose to do so. Keep in mind that if you make both of these inquiries on your credit in a short period of time, it can negatively impact your credit score.

Other Credit Card Options

Just because you shop at Costco doesn’t mean you have to have a Costco credit card. There are many other Visa cash back credit cards that are available to the public that will work at Costco locations after the switch has been made. You can look at the different Visa credit card options online and apply from the comfort of your own home. Just be sure that when you are choosing a credit card you are choosing it wisely. Choose cash back bonuses over travel bonuses. You may want to look at cards like the Chase Freedom Card, CapitalOne Quicksilver Card, BankAmericard Credit Card or one of the many others provided by Visa.

Give the gift of savings! Learn more

For more info on Costco check out these articles.

Is the Costco Membership Fee Worth it?

Is a Costco Executive Membership Worth the Price?
Costco Gas Calculator: Will I Save Money Buying a Membership if All I Buy is Fuel?

Costco Return Policy

Costco Holiday Schedule

Costco Tires

You can check out our articles for Target as well.

Target Christmas Store Hours

Target Holiday Schedule and Store Hours

Photo: Flickr: DeclanTM

Getting More from the Chase Freedom® Calendar

September 1, 2015 By Will Lipovsky Leave a Comment

Offering five percent cash back, the Chase Freedom® Card is pretty great. But is it the best? Other five-percent cards might suit you better or at least as well as this one. Here’s what you need to know about the Chase Freedom® Card before making it your cash-back card of choice.

How Chase Freedom® Works

The Chase Freedom® Card always pays one percent back on purchases in the form of points, with each point counting as one cent. Once you acquire at least 2,000 points under the ultimate rewards program, you can cash them in for cash back. The card includes a revolving calendar of bonus categories that include common expenses like groceries, gas or Starbucks. When you buy goods that fall under these categories, you earn five times the points on up to $1,500 in spending per quarter (7,500 points).

Other bonuses, like the $100 sign-on bonus when you spend $500 in the first three months of holding the card make the offer even more appealing. You also get interest free credit on purchases for the first 15 months. With no annual fee, Chase Freedom® is a good deal… but it’s not the only game in town.

The Challenger: U.S. Bank Cash+™

If you need a little more flexibility in bonus categories, you could consider the U.S. Bank Cash+™ Visa Signature® Card instead. This one offers five percent back on two categories among twelve offered. These categories change every quarter. Like the Chase Freedom® Card, you must activate the categories, but the limit is higher, giving you cash back on up to $2,000 worth of purchases per quarter.

U.S. Bank Cash+™ also provides one percent back on all purchases. But the bonus structure is a little different. Besides the five percent back in bonus categories, users earn two percent back on one “everyday” category they choose, such as fuel or groceries. The interest free introductory period is nine months.

The Most Important Difference between the Two

Either program might work well for you, but before you decide on either card, know that Chase Freedom® includes fraud protection, while U.S. Bank Cash+™ does not. Given the nature of credit card security in the past few years, this could be the deciding factor for many.

Getting More from the Chase FreedomÂ® Calendar

September 1, 2015 By James Hendrickson Leave a Comment

How Chase Freedom® Works

The Challenger: U.S. Bank Cash+™

The Most Important Difference between the Two

5 Best Rewards Credit Cards, Fall 2015

August 31, 2015 By Will Lipovsky 1 Comment

There is no shortage of rewards credit cards out there, but only a handful is worth getting excited about. These cards offer the best of rewards with the greatest flexibility and fewest fees.

Best Travel Rewards Card – Chase Sapphire Preferred

What Makes It Great

Chase Sapphire Preferred gives you double points on travel and dining and you get full value on points for participating travel programs.

Points System – Get two Ultimate Rewards Points for every dollar you spend on travel and dining. All other spending earns one point per dollar. You can use points for statement credit, on Amazon.com or for travel under Chase Ultimate Rewards, which earns you a 25 percent bonus on your points. Combine your points with those earned under other travel rewards programs with participating hotels and airlines.
Bonuses – Get a 40,000-point sign-up bonus by spending $4,000 with the card in the first three months. The card also provides several types of travel insurance as part of its services.
Annual Fees – $0 the first year, $95 every year after.
Who Benefits Most – Travelers and frequent diners.

Runner Up – BankAmericard Travel Rewards Credit Card

What Makes It Great

Enjoy rewards with no blackout dates or other controls that would limit your ability to redeem travel rewards. In addition, there are no limits on rewards spending.

Points System – Earn 1.5 points for every dollar spent on any type of purchase.
Bonuses – Get 20,000 online bonus points by spending $1,000 or more in the first 90 days.
Annual Fee – $0.
Who Benefits Most – Anyone who would not earn enough in rewards to cover the $95 annual fee under the Chase Sapphire Preferred card.

Best Everyday Spending Cash Back – Chase Freedom

What Makes It Great

Chase Freedom is popular for its rotating calendar of cash backs categories that encompass many types of everyday spending.

Points System – Get five percent back on bonus categories under the quarterly rotating calendar. Bonus points are limited to $1,500 spending each quarter. To earn the bonus points, you must opt in each quarter. You can opt in retroactively.
Bonuses – Get a $100 bonus after spending $500 in your first three months.
Annual Fees – $0.
Who Benefits Most – Anyone with everyday expenses who isn’t into travel rewards.

Runner Up – American Express Blue Cash Preferred

What Makes It Great

Blue Cash Preferred offers the highest cash back rate with the most flexibility, making it ideal for those who don’t want to manage a bonus calendar.

Points System – Get six percent cash back on groceries, up to $6,000 a year. Earn three percent on gas and department store purchases with no limit.
Bonuses – Get $150 cash back after spending $1,000 in the first three months in the form of a statement credit.
Annual Fees – $75.
Who Benefits Most – Families, especially large ones who spend a lot on groceries and gasoline.

For Those Who Are Unsure What Rewards They’d Like:

Citi Double Cash Card

What Makes It Great

Citi Double Cash gives you flexibility in redeeming rewards. You can get cold hard cash, not just merchandise or a statement credit.

Points System – Get one percent cash back on every purchase. Get another one percent back when you pay off the purchase, with no limit to the points you can earn. Cash in points for a statement credit, a gift card or a check in the mail. Must have $25 in earned rewards to redeem points.
Bonuses – None.
Annual Fees – $0.
Who Benefits Most – Everyone who doesn’t benefit from travel, grocery, gas or department store rewards cards.

No matter your spending habits, one of these cards will give you a nice amount of cash back on money you have to spend anyway.

How to Use the Chase Freedom Calendar

August 27, 2015 By Will Lipovsky 1 Comment

The Chase Freedom card offers users a revolving calendar, allowing users to earn cash back on different shopping categories throughout the year. The calendar changes categories every three months on this no-annual-fee cash back credit card. The card stands out for its generous $100 sign-on bonus if you spend $500 in the first three months of carrying the card. You also earn five times the cash-back… if you know how to use the card to its fullest potential.

Basic Cash Back Benefits

The Chase Freedom® Card gives users one percent back on purchases throughout the year, and two percent back on Airlines and Hotels through the Ultimate Rewards program that is provided on the company’s entire line of personal credit cards. Cash back comes in the form of points, where each point is valued at one cent. You need at least 2,000 points to redeem cash back.

That means spending at least $400 on bonus categories or $2,000 on non-bonus categories before you can cash in. There is no annual fee, somewhat of a rarity on cash-back credit cards, but the real cash back comes when you take advantage of the Chase Freedom® Calendar. Happily, these points never expire, so you have all the time you need to accumulate enough to cash in.

The Rotating Calendar Bonus

Every year, Chase publishes a different rewards calendar, usually in December of the prior year. Once you know the type of purchases that will earn the higher cash-back rate of five percent, you can plan your purchases around it. Understand that these rewards are limited to $1,500 of purchases per quarter (or $75 cash back). You still earn one percent on purchases that don’t fall under a bonus category, on top of your bonus rewards. It’s important to remember that you have to activate your rewards each quarter to earn five times the cash back under the bonus categories.

In 2015, the Chase Freedom® Calendar looked like this:

Jan 1 – Mar 31 Grocery Stores, Movie Theaters, Starbucks
Apr 1 – Jun 30 Restaurants, Bed Bath & Beyond, H&M, Overstock.com
Jul 1 – Sep 30 Gas Stations, Kohl’s
Oct 1 – Dec 31 Amazon.com and more

More Tips for Maximizing Rewards

Because the Ultimate Rewards program is included with other Chase cards, you can combine rewards points to reach your cash-back status more quickly. And because you get 15 months interest free to pay for the purchases you make, you gain more flexibility in your budget.

The Best Credit Cards for Amazon Purchases

June 3, 2014 By Guest Writer 3 Comments

best credit cards to buy from Amazon.com

By Will Charles

Amazon.com is one of the most well known and popular online retailers, because of this in 2013 they did $74.45 billion in revenue. If you’re anything like me you do a lot of your shopping on amazon, as such it’s important to have a credit card that earns at a high rate for this online juggernaut. We did the research and came up with some suggestions if you are looking for the best credit cards for Amazon purchases.

Amazon.com Store Card

The Amazon.com store card is one card to consider if you spend a lot of times shopping in the Amazon.com. They offer six, 12 and 24 month special financing financing terms for smaller purchases, no annual fee and 5% cash back for Amazon Prime members. The only thing with this card is that the interest rate is 26% so its only for those who won’t carry a balance. Check out the terms by clicking on the picture below.

If you don’t want to go the store card route, here are some other options.

Amazon.com Rewards Visa Card From Chase: 3% Cash Back

A lot of people wrongly assume that the amazon.com card offered by Chase is the best on the market when it comes to purchases on Amazon.com. Both companies rely on this knowledge and instead of offering an amazing cash back rate on Amazon purchases they instead only offer 3%. As you’ll see in this post, there are MUCH better options out there than this card.

American Express Blue Cash: 3% Cash back

This card earns 3% cash back on grocery stores, thankfully almost all grocery stores stock Amazon gift cards. Similar to the card offered by Chase this card also offers 2% back on gas purchases, the key difference is that there is a sign up bonus of $100 when you spend $1,000 within the first three months.

American Express Everyday Preferred : 4.5 American Express MR Points

This card earns 3 American Express membership rewards points per dollar spent at grocery stores, you also get a 50% bonus if you do a minimum of 30 transactions per month – bringing the total to 4.5 MR points per dollar spent. Grocery stores stock Amazon gift cards.

The downside to this is the annual fee of $95, the upside is that this card comes with a 15,000 point sign up bonus when spend $1,000 within the first three months.

Chase Freedom/Discover it: 5% In Q4

Both of these cards offering 5% rotating categories. In the fourth quarter of last year both of them offered this on amazon purchases – just in time for those Christmas purchases. Chase is set to do the same this year and it looks like Discover will follow suit although they haven’t released their full schedule yet.

Neither card comes with an annual fee. The Freedom currently has a sign up bonus of $100 after $500 in spend (this regularly goes up to $200) and the Discover it has a bonus of $150 after $750 in spend. Both of these cards have a limit of $1,500 that can be spent per quarter.

Chase Ink Plus/Bold/Cash 5x Chase UR Points

Another one of the best credit cards for Amazon purchases is the Chase Ink Plus/Bold/Cash. These are business cards offered by Chase, they all earn 5x Chase UR points on office supply store purchases (which can be redeemed for 1 cent each in statement credit or transferred to airline or hotel partners). Most office supply stores carry amazon gift cards which means you can get 5% back.

SallieMae Rewards Mastercard From Barclaycard: 5% Cash Back

This card is often overlooked, it earns 5% on gas and grocery store purchases (the first $250 you spend each month in both categories) and earns 5% on eligible bookstore purchases. Amazon’s main business used to be selling books (and still is) as such their merchant category code is still a bookstore. This means this card will earn 5% cash back on Amazon.com purchases, there is a limit of $750 per month.

Not all amazon.com purchases will code as a bookstore though, a lot of Amazon market place purchases will not code as a bookstore and as such you won’t earn 5% cash back. There is also a sign up bonus of $25 after your first purchase.

American Express Blue Cash Preferred: 6% Cash Back

This card earns 6% cash back at grocery stores on the first $6,000 every year. I know this is an article is on Amazon purchases, but the work around is easy. Almost all grocery stores stock Amazon gift cards, you simply choose the amount you want and then purchase it. It takes a little bit more work, but for those who frequently shop at Amazon this is well worth it.

The downside is that this card comes with an annual fee of $75. The upside is that there is a sign up bonus of $150 if you spend $1,500 within the first three months.

Get Additional Money Back

You can earn additional savings by pairing your favorite credit card with a cash back portal. These deals regularly change and are generally only for specific (and high margin) categories. The following portals regularly offer cash back deals at amazon. Be sure to read the fine print!

befrugal – up to 6% cash back currently
eBates – up to 3% cash back currently
Fatwallet – up to 3% cash back currently
Mr Rebates – no cash back currently

Will is the editor at doctorofcredit.com. He regular blogs about personal finance and consumer credit issues. Recently he posted a list of the best cash credit card sign up bonuses. Make sure you follow him on twitter to keep abreast of the latest news & deals.

(Photo courtesy of Phillip Stewart)