With a few clicks and a change in which credit card I was using, I was able to make adjustments that will earn my family an extra $500 in rewards over the next twelve months.
That Old Reliable Costco Card
The biggest change was made after I reviewed the percentage of cashback I was earning for different types of charging activities. I have been using my Costco credit card for most of my purchases, but I've learned that my other credit card offers a 3% reward for online retail purchases, such as those made through Amazon. I changed my default credit card with Amazon to a different card. In this case, it is an American Express card.
Amex also had rewards that required enrollment. By clicking on the reward within my online account and then enrolling in the reward, I will now receive an $8 monthly rebate by charging my Amex for my Disney+ subscription and a $20 monthly rebate (for three months) on my YouTube TV monthly payment.
I had to change the default card for Disney and YouTube TV. I also had to change my Disney+ subscription from an annual to a monthly payment, but it wasn't too painful.
What Other Changes?
All of my supermarket purchases will continue to be made with Amex, while the Costco card is the preferred choice for gas (at Costco gas stations), restaurants, travel, and Costco purchases.
The downside is that both cards only pay 1% for "other" purchases not covered by a specific category. If you look, you can find a card that pays 1.5% or 2% for other purchases, but I'd prefer to limit the number of cards. Since the categories already mentioned cover a large percentage of my spending, I don't see a big need for adding another card, except…
Should I get a Southwest Card?
Since Southwest has many non-stop flights from the Indianapolis (IND) airport, I suspect that many of you have looked into their card or soon will. With Southwest changing its seating selection policy starting in 2026 and now charging for checked bags, its credit card becomes more interesting. Their present promotion offers 85,000 points for signing up. This is likely enough to cover the cost of one round-trip flight for when you just wanna get away.
Once you use up your bonus points, the benefit of the card is just whelming, not great, but not bad. You can get free checked bags, worth at least $35 per bag. With three free bags per year, you offset the annual cost of $95.
Additionally, you receive a preferred boarding group and double points on Southwest purchases. Be careful, though, when buying Southwest gift cards, as Costco has occasionally offered them for 10% or 20% off the card's value, which beats 2x points any day.
Summary
I probably spent two hours researching my current cards and making the changes that I mentioned. The final step is to set a reminder to review my card rewards two to three times a year.
Now it's your turn. Don't put it off too long, as the holiday shopping season is getting underway!
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The material has been gathered from sources believed to be reliable, however Bedel Financial Consulting, Inc. cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. To determine which investments or planning strategies may be appropriate for you, consult your financial advisor or other industry professional prior to investing or implementing a planning strategy. This article is not intended to provide investment, tax or legal advice, and nothing contained in these materials should be taken as such. Investment Advisory services are offered through Bedel Financial Consulting, Inc. Advisory services are only offered where Bedel Financial Consulting, Inc. and its representatives are properly licensed or exempt from licensure. No advice may be rendered unless a client agreement is in place.
