How I use it:
- Travel (hotels, airplane tickets, etc)
- Costco purchases
- 4% back on Gas
- 3% back on Travel and Restaurants
- 2% back on Costco purchases
- 1% back on everything else
- No annual fee (but you need a Costco membership)
Annual Value: $468
- $300 from Travel (3% x 10 trips/year x $1,000/trip)
- $96 from Gas (4% cash back x $200/month x 12 months)
- $72 from Costco purchases (2% x $300/month x 12 months)
- Ignoring the annual Costco membership fee (notes below)
If you’re going to pick any single card, I can’t think of a better one out there. The rewards are spread across categories nicely, and if you shop at Costco even semi-regularly you’re getting your value from the membership so there this is essentially a no-annual-fee card.
Plus, the value above is probably understated quite a bit, especially for work travel and family vacations. Not to mention, if you decide to make a big purchase from Costco, that $300/month can get blown significantly out of the water.