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.
In addition to the excellent travel rewards, cardholders also get 4% cash back on gas for the first $7,000 per year, 3% cash back at restaurants, 2% cash back on all Costco purchases, a 0% foreign transaction fee, and a $0 annual fee. So, if you’re a frequent Costco shopper, looking for a new card with travel rewards and no fees, the Costco Credit Card is a good option.
Redeeming your Costco Citi rewards is not as easy as redeeming other credit card rewards, however. You can only redeem for cash back (so no flights, hotel nights, etc.). You can only redeem once a year (in February). And you have to go to a Costco location to do it (Costco has 558 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 Citi card’s lack of travel rewards redemption options turns you off, 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 100,000 points, which new cardholders get after spending $4,000 in the first 3 months.
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