Pros
- $0 Annual Fee
- High Rewards Rate
- No Foreign Transaction Fees
Cons
- No Initial Rewards Bonus
- In-Store Rewards Redemption Only
- High Regular APR
Costco Anywhere Visa® Card by Citi
- Earn 5% cash back rewards on gas at Costco and earn 4% cash back on other eligible gas and electric vehicle (EV) charging purchases for the first $7,000 combined spend per year, and then 1% thereafter.
- 3% cash back on restaurants and eligible travel purchases and eligible travel, including Costco Travel.
- 2% cash back on all other purchases from Costco and Costco.com
- 1% cash back on all other purchases
Rewards Details
- Discover one of Citi’s best cash back rewards cards designed exclusively for Costco members
- Earn 5% cash back rewards on gas at Costco and earn 4% cash back on other eligible gas and electric vehicle (EV) charging purchases for the first $7,000 combined spend per year, and then 1% thereafter.
- 3% cash back on restaurants and eligible travel purchases and eligible travel, including Costco Travel.
- 2% cash back on all other purchases from Costco and Costco.com
- 1% cash back on all other purchases
- Receive an annual credit card reward certificate, which is redeemable for cash or merchandise at U.S. Costco warehouses, including Puerto Rico
Additional Info
- *No annual fee with your paid Costco membership and enjoy no foreign transaction fees on purchases
- More Details & Reviews About Costco Anywhere Visa® Card by Citi
Is the Costco Credit Card Worth It?
The Costco Anywhere Visa® Card by Citi is worth applying for if you have a Costco membership and an excellent credit score. The Costco Credit Card has a $0 annual fee and gives 5% cash back rewards on gas at Costco and 4% cash back on other eligible gas and electric vehicle (EV) charging purchases for the first $7,000 combined spend per year, and then 1% thereafter, 3% back on restaurant and eligible travel purchases, 2% back on all other Costco and Costco.com purchases, and 1% back on all other purchases. It’s also worth using abroad, as the card has a 0% foreign transaction fee.
The main downside is that rewards are only paid out once per year, each February, and you have to redeem in-store by December. Most rewards credit cards make it a lot easier to cash in.
What You Need to Do to Make the Costco Credit Card Worthwhile
To make the Costco Credit Card worthwhile, you should pay your bill in full every month, as the card has a 18.99% - 26.99% (V) interest rate, and that can quickly wipe out any value you get in rewards. You will also need to maintain a Costco membership, which will cost you $65+ per year. The card itself has a $0 annual fee and no initial bonus, so you don’t have to worry about meeting any card-specific spending thresholds.
Costco Credit Card Highlights
1 - 5% Cash Back on Purchases
The Costco Credit Card rewards cardholders with 2% cash back on Costco and Costco.com purchases. It actually offers higher rewards rates on gas purchases (5% cash back rewards on gas at Costco and 4% cash back on other eligible gas and electric vehicle charging purchases for the first $7,000 combined spend per year, and then 1% thereafter), eligible travel (3% cash back) and dining at restaurants (3% cash back).
All other purchases provide 1% cash back, which is about average for a rewards card. As a result, you might want to consider pairing the Costco Credit Card with another card that gives 1.5% - 2%+ back at a minimum.
$0 Annual Fee
The Costco Credit Card’s $0 annual fee makes it $26.75 per year cheaper than the average credit card offer. Costco membership is not included with the card, though.
$0 Foreign Transaction Fees
You will not be charged extra for making purchases internationally with the Costco Visa. In contrast, the average credit card offer has a foreign fee of 1.58%.
Costco Credit Card Lowlights
No Initial Rewards Bonus
The Costco Credit Card does not offer bonus rewards to new cardholders who spend a certain amount in the first few months after opening an account. The average cash rewards card gives $235, and the best credit card initial bonuses are worth several times more than that.
If you’d like to supplement your earnings with an initial bonus, I recommend considering WalletHub’s picks for the best credit card signup bonus offers available right now.
In-Store Rewards Redemption Only
To redeem Costco Credit Card rewards, you must actually go into a Costco store and use your earnings at check out. And if you don’t redeem between February and the end of the year, the rewards you have saved up from the previous year will expire.
This is my least favorite thing about the Costco Credit Card. Sure, Costco members are likely to be in the store regularly, but they could also use the extra savings throughout the year.
High APR for Excellent Credit
The Costco Credit Card APR is 18.99% - 26.99% (V). For comparison, the average credit card offer for people with excellent credit has an APR of 17.68%. The Costco Anywhere Visa does not currently offer a lower introductory rate as a promotion, either.
I strongly encourage anyone who gets this card to avoid interest charges by paying their bill in full every month. The whole point of getting a Costco membership and applying for the Costco Credit Card is to save money, and you’d squander those savings quickly if you carry a big balance from month to month.
Other Things to Consider About the Costco Credit Card
Costco Membership Required
Although the Costco Anywhere Visa has a $0 annual fee, there’s still a cost associated with the offer. Being a Costco member is among the card’s approval requirements, and a Costco membership will cost you at least $65 per year.
At least you can use your credit card as your Costco ID once approved.
Excellent Credit Score Needed for Approval
The Costco Credit Card’s credit score requirement is excellent credit. I suggest checking your credit score for free on WalletHub to gauge your odds of approval before you apply.
Costco Credit Card vs. the Competition
annual fee$0 | annual fee$0 intro 1st yr, $95 after | annual fee$0 |
rewards rate
| rewards rate
| rewards rate
|
bonus offer N/A | bonus offer Earn a $250 statement credit after you spend $3,000 in eligible purchases on your new Card within the first 6 months. | bonus offer Intro Offer: Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening |
Purchase Intro APRN/A | Purchase Intro APR0% for 12 months | Purchase Intro APR0% for 15 months |
transfer intro aprN/A | transfer intro apr0% for 12 months Transfer Fee: 3% (min $5) | transfer intro apr0% for 15 months Transfer Fee: Either $5 or 3% of the amount of each transfer, whichever is greater in the first 60 days (5%, min $5 after) |
Regular APR18.99% - 26.99% (V) | Regular APR19.74% - 28.74% (V) | Regular APR18.74% - 28.24% (V) |
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Costco Anywhere Visa® Card by Citi Review Methodology
This Costco Anywhere Visa® Card by Citi review is based on WalletHub’s proprietary 100-point credit card rating system. By using a consistent methodology to evaluate the Costco Anywhere Visa® Card by Citi and all other cards, WalletHub’s credit card experts make it easy for people to compare their options and find the best credit cards for their needs.
The WalletHub rating system uses 16 key metrics grouped into seven categories: Fees, Rewards, Two-year Cost, Interest Rates, Approval Requirements, Special Features, and Reviews. Each metric has a maximum number of points allocated to it, based on the metric’s importance as determined by our editors. The points are added up to create an overall rating for the Costco Anywhere Visa® Card by Citi out of a maximum of 100 points, which is then converted to a 5-point scale.
Ratings for each category reflect how close Costco Credit Card is to WalletHub’s definition of a 5-star credit card, which is based on market conditions and what we believe are reasonable terms. We compare Costco Credit Card to that standard to give a numerical approximation of how reasonable and competitive its terms are compared to other cards.
To learn more about how WalletHub rates credit card offers, check out our full credit card review methodology.
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