Costco will use the Costco Anywhere Visa® Card by Citi for U.S. consumers in 2022. Costco shoppers who use the Costco Credit Card get 1 - 4% cash back on purchases, which is redeemable for cash or merchandise at any U.S. Costco warehouse.
The major change in 2022 is the introduction of the CIBC Costco Mastercard on March 4, 2022, in partnership with Costco Canada. The card will replace the Costco Mastercard currently issued by Capital One Canada and will only be available to Canadian residents.
Costco’s U.S. warehouse locations started exclusively accepting Visa credit cards in 2016. According to CIBC customer service representatives, the new CIBC Costco credit card will not be exempt from this rule. That means CIBC Costco Mastercard users will not be able to use their credit cards at U.S. Costco warehouses, though they can still make purchases on Costco.com.
The Costco credit card change happened on June 20, 2016. More specifically, that’s when Costco’s switch to Visa from American Express officially took effect, after being announced in February 2015. As a result, Costco went from only taking Amex to exclusively accepting cards on the Visa network.
Costco switched to Visa mainly for business reasons. Though they enjoyed a 17-year exclusive relationship with American Express, eventually they could not negotiate a renewal of the contract with the terms they wanted. So Costco turned to Visa, and the deal they negotiated ended up benefitting both Costco and its shoppers. For starters, far more people have a Visa card than an American Express card. There were 335 million Visa cards in circulation at the end of 2016, compared to 47.5 million American Express cards, according to the networks’ filings with the U.S. Securities and Exchange Commission.
Despite having some initial trouble making the switch, Costco has now settled into the new system. Customers can now use any Visa credit cards and most PIN-based debit/ATM cards at Costco, and the Costco Credit Card has a far better rewards program than its predecessor.
If you’re already a Costco member or are planning to become one (membership is required for the card), the Costco Credit Card is a perk that’s definitely worth taking advantage of. It offers extensive ongoing rewards: 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. And aside from the Costco membership costs, the Costco Credit Card charges a $0 annual fee.
No, you can’t use your Mastercard credit card at Costco, because Costco has a contract with Visa. You can, however, use your Mastercard credit card for purchases made at Costco.com and through the Costco app. For their warehouse locations Costco only accepts cards on the Visa network.
So, if you only have a Mastercard and want to shop at Costco, you have a couple choices. For starters, you can still pay for Costco items with cash or a check. But if you don’t really want to carry all that cash, take the time to write out a check or miss out on a lot of rewards, your best bet is to simply get a … read full answerVisa credit card.
The Costco credit card credit score requirement is 750 or above, 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.
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