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 yearly membership dues.
The only downside is that you only get your rewards once a year, in February. And you must redeem the Costco Credit Card rewards certificate by the end of the year, or else it will expire. The Costco Credit Card also requires excellent credit for approval. In case you don’t know where you stand, you can check your latest credit score for free on WalletHub.
Here’s more info about the Costco Credit Card rewards:
Earn: 4% cash back on eligible gas (up to $7,000 spent per year), 3% back on restaurants and travel, 2% back on Costco and Costco.com purchases, and 1% back on all other purchases.
Redeem: The Costco Credit Card rewards are redeemable for cash merchandise at US Costco Warehouses, including Puerto Rico.
When rewards post: The cash back will be provided as an annual credit card reward certificate once a year, in February.
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 this card will save you at least $60 (the minimum Costco membership cost) more than the next best option.
It’s a lot harder to redeem Citi Costco rewards than you might think, thanks to a couple of key restrictions. For starters, you will only receive your Costco Visa cash back once per year, in February. It comes in the form of a rewards certificate, which you have to actually go to a Costco location to spend. And you have to do that by the end of the year, when the certificate expires. In contrast, most rewards credit cards allow you to redeem whenever you want, with just a few clicks or a phone call.… read full answer
So while it’s very easy to quickly rack up a lot of rewards with the Citi Costco Credit Card, you’ll have to wait quite a long time to see any real savings. Once February rolls around, though, using your rewards is simple.
Here’s how to redeem Citi Costco rewards:
1. Each February, once your account has been open for at least a year, you’ll receive a “credit card reward certificate” along with your monthly billing statement. This certificate will be redeemable for all the cash back you’ve earned since the last February.
2. Bring the certificate the next time you go to Costco.
3. Redeem the certificate at the register for Costco merchandise, cash or a combination of the two.
Unfortunately, the fact that you’ll receive your Costco rewards just once per year isn’t the only restriction you should be aware of. You should also consider the following rules before submitting an application.
Rules for redeeming Citi Costco rewards:
You must redeem each year’s rewards before December 31. Otherwise, they expire.
Only you and authorized users on your card can redeem your certificate. You can’t give it to someone else.
If you’ve earned less than $1 in rewards, you won’t get a certificate and will lose that money.
If you close your account (or Citi does), you forfeit any rewards that haven’t already been sent to you. In other words, you can still use a reward certificate after your account closes.
Keep these restrictions in mind so that you don’t lose any of your cash back. While Costco’s process may not be the ideal situation for redemption, good things come to those who wait. So have patience.
The Costco Credit Card’s travel rewards rate is 3% cash back on airfare, hotels, car rentals, travel agencies, and purchases made through Costco Travel.
All in all, this card is a great rewards earner, offering 1 - 4% cash back, depending on the type of purchase. Plus, the Costco Credit Card charges 0% … read full answerforeign transaction fees and has a $0 annual fee. So, if you’re a frequent Costco shopper, looking for a new card with travel rewards and $0 fees, the Costco Credit Card is a good option.
Here’s what you need to know about Costco Credit Card rewards redemption:
Redeeming your Costco Credit Card rewards is not as easy as redeeming other credit card rewards, though. You can only redeem for cash back (so no flights, hotel nights, etc.). What’s more is that you can only redeem once a year (in February). And you have to go to a Costco location to do it (Costco has hundreds of locations in the U.S.). On top of that, rewards expire at the end of each year.
So, while you can earn rewards for the travel purchases you make, you won’t be able to use those rewards to pay for trips or travel-related expenses directly. The best you’ll get is a once-a-year rewards certificate that you can redeem for cash or Costco merchandise. Still, saving on the various types of things for sale at Costco will free up more money to go into your travel budget.
If the Costco Credit Card’s lack of travel rewards redemption options lets you down, remember that any Visa credit card will work at Costco. One of the best Visa cards for travel rewards is the Chase Sapphire Preferred® Card. Among this card’s many perks is a signup bonus of 80,000 points, which new cardholders get after spending $4,000 in the first 3 months.
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