Yes, Costco Credit Card rewards are quite good, especially on gas, dining, travel and Costco purchases. You get 2 to 4 times the standard earning rate in those spending categories. And there’s no annual fee – just Costco’s $60 or $120 yearly membership dues for their regular, Everyday Value and their premium, Gold Star Executive memberships, respectively. The only downside is that you only get your rewards once a year, in February. And you have to redeem the Costco credit card rewards certificate that you receive by the end of the year, or else it will expire. You also need excellent credit to qualify for the card to begin with. In case you don’t know where you stand exactly, you can check your latest credit score for free on WalletHub.
So as long as you spend a lot in the card’s bonus categories, want to become a Costco member, are cool with annual rewards payouts and have excellent credit, then you should definitely consider the Costco credit card. But you should probably do the math to confirm it will actually save you money compared to other top cash back cards. To help with that, I’ll give you a more detailed breakdown of the Costco Credit Card offer.
Here are the Costco Credit Card rewards:
- 4% Cash back on the first $7,000 you spend on eligible gas every year (1% cash back thereafter and on other gas purchases). “Eligible gas” just means not from superstores, supermarkets or wholesale clubs.
- 3% cash back at restaurants and on eligible travel. Restaurants do not include bakeries or restaurants located inside other stores. “Eligible travel” includes but is not limited to airfare, hotels, car rentals, travel agencies, cruise lines and Costco travel.
- 2% cash back at Costco stores and Costco.com.
- 1% cash back on every other purchase.
The Costco Credit Card has great rewards and very high earning potential. Only the 4% rate has any limits, so your cash back will add up quickly. But whether it’s worth it depends on your circumstances. If you’re already a Costco member, have excellent credit and spend a lot on the cash back categories, this card is probably a good choice for you. If not, you have to figure out whether the Costco Visa will save you at least $60 (the minimum Costco membership cost) more than the next best option.
WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.
WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines
. This question was posted by WalletHub.
Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.