Last month, we finally applied for the Costco American Express. We’ve been going to Costco for several years and always pay with a check, since they don’t take Visa, the credit card we use for everything else.
We don’t tend to keep money in our checking account though, because it doesn’t earn interest. Instead, we move it to our HELOC (where the interest rate that it saves us is 8.3%) or we put it into our ING account. Usually we have just a couple hundred dollars in the checking account in case of an emergency. Whenever we were going to Costco (about once every 6 to 8 weeks) I would move money back from the HELOC to the checking account, and then we would have to remember to take the checkbook with us when we went shopping (we don’t normally carry it with us).
Anyway, we decided that the Costco American Express would make things easier. We get 1% cash back on everything we buy at Costco, which is a nice bonus. We get that with our other credit card for everything else, but our Costco purchases had never gotten us cash back before. And as Costco members, there’s no annual fee for the AmEx card. So now we can go to Costco without remembering to grab the checkbook or transfer funds. Much easier.