The best credit card for Costco is the Costco Anywhere Visa® Card by Citi. You get 4% cash back in Costco cash on the first $7,000 you spend per year on gas (including Costco stations). You also get 3% cash back for restaurant and travel purchases, 2% cash back at Costco and Costco.com, and 1% cash back everywhere else. You get your Costco cash as a yearly certificate every February, and you can redeem it for any Costco purchases at a 1:1 rate.
The Costco card gives you the most rewards at Costco. But if you want a card that offers rewards at other grocery stores, too, there are other options available. And they’re all Visa options, since that’s the only card network that Costco accepts.
Here are the best credit cards for Costco:
Costco Anywhere Visa® Card by Citi: $0 annual fee. 4% cash back at eligible gas stations, 3% on restaurants and travel, 2% on Costco purchases, 1% everywhere else. Excellent credit required.
Capital One® Savor® Cash Rewards Credit Card: $95 annual fee. $300 for spending $3,000 in your first 3 months. 4% cash back on dining, entertainment and popular streaming services, 3% back at grocery stores and 1% back on all other purchases, as well as 8% back on tickets at Vivid Seats through January 2023. Good credit required.
Capital One Venture Rewards Credit Card: $95 annual fee. 60,000 miles for spending $3,000 in the first 3 months. 5 miles per $1 for purchases made through Capital One Travel, and 2 miles per $1 everywhere else. Good credit required.
PenFed Platinum Rewards Visa Signature® Card: $0 annual fee. 15,000 points for spending $1,500 in your first 3 months. 5 points per $1 spent on gas and electric vehicle charging stations, 3 points per $1 at supermarkets and restaurants, 3 points per $1 on cable, satellite and other pay television/radio/streaming services, as well as 1 point per $1 on all other purchases. Excellent credit required.
So, the Costco Anywhere Visa® Card by Citi definitely takes the cake as far as credit cards for Costco go. But you don’t need a credit card with Costco in the name, or even one with extra rewards on groceries, to save on Costco purchases. Some cards, like the Capital One Venture Rewards Credit Card and the Citi Double Cash Card, have great earning rates on all purchases.
That’s obviously going to be the Costco Anywhere Visa® Card by Citi. It’s not only great for Costco purchases, as you can use it for all your other purchases and earn rewards. It also doesn’t charge a foreign transaction fee. The card offers 4% cash back on all gas purchases, not just Costco, 3% on restaurants and travel, 2% on Costco purchases, and 1% on all other purchases.
The Costco credit card credit score requirement is 750 or higher, as applicants need an excellent credit score to qualify. That’s the case for both the Costco Anywhere Visa® Card by Citi by Citi and the version for small business owners.
Having a high enough credit score doesn’t guarantee approval, of course. And it’s possible to get approved with a lower score. That’s because your ability to pay – income and assets compared to debts and liabilities – matters, too.… read full answer
Personal credit always is the key. Whether you’re interested in the Costco Anywhere Visa® Card by Citi or the Costco Anywhere Visa® Business Card by Citi, your personal credit standing will largely dictate your odds of approval. All business credit cards base approval decisions on applicants’ personal credit history because it tends to be longer and more predictive. They don’t ask for your Social Security number for nothing!
Income & assets are your friends. Income and assets speak to your ability to pay a new credit card’s bills. The more money and valuable items you have to your name, the less risky you’re generally considered to be. But these factors aren’t viewed in a vacuum. They’re compared to your existing debt obligations.
Existing debt counts against you. Lenders want to know they’ll get paid. And the more debt you have relative to your income, the less confident they’ll be about that happening.
Take anecdotal evidence with a grain of salt. Some members of the community report getting approved for a Costco Anywhere Visa® Card by Citi with a credit score in the low 700’s. But since a lot of other factors are in play, you shouldn’t assume that you will be approved just because they were. Plus, getting turned down for a credit card can lead to temporary credit score damage.
If your credit score is already 750+, you have a steady income and few debts, and your financial situation is in order, you’ll have a better chance of approval. If not, you could dramatically increase your chances of being approved for a Costco credit card by delaying your application and spending some time focusing on credit improvement. This includes things like catching up on your current payments, utilizing less of your current credit lines, and building a longer history.
Finally, don’t forget that you have to be a Costco member to apply. That will cost you $60+ per year in membership dues.
Yes, the Costco Credit Card is worth it because it gives 1 - 4% cash back on purchases, you can use it anywhere Visa is accepted, and there’s a $0 annual fee. So, it’s pretty much a must-have for Costco members, if you can get it. You need excellent credit (a score of 750+) to qualify.… read full answer
Reasons Why the Costco Credit Card Is Worth It
Cash back on popular spending categories: You’ll earn 4% cash back on certain categories. You’ll also get 3% at restaurants and on eligible travel expenses, along with 2% at Costco and Costco.com, and 1% on all other purchases. Rewards get delivered once a year in the form of a certificate included with your February billing statement, and you have a year to redeem.
$0 annual fee: While you will have to pay $60+ per year for a Costco membership, you won’t have to spend any additional money just to have the card.
$0 foreign fees: You can use your card on purchases throughout your travels, knowing that there are $0 foreign transaction fees on purchases.
Insurance: The Costco Credit Card provides several types of insurance at no extra cost to you. The travel insurance policies include compensation for emergency assistance and damage/theft of rental cars. Items you buy with your card can also be replaced/reimbursed with purchase protection.
The Costco Credit Card clearly is worth it when used responsibly by the right type of person. But since Costco will accept any card on the Visa network (plus cash and checks), you have other options.
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