Costco Credit Card Review
Costco Anywhere Visa®
The Costco Anywhere Visa, or simply the Costco Credit Card, is one of the best cards for Costco members. It lets you maximize your membership by earning cash back on all purchases, and offers 4% cash back on gas. Those cash-back rewards will earn you an annual rewards certificate you can redeem at any U.S. Costco store.
Combined with its $0 annual fee and other ways to earn rewards, the Costo Credit Card’s a great addition to your wallet if you’re already a Costco member. Still, it might be worth exploring other rewards credit cards that offer greater flexibility. Check out the CardCruncher tool to find the best card for you, and read on to learn all there is to know about the Costco Credit Card.
Costco Anywhere Visa Card Highlights
Annual Fee: $0
APR: 15.24% (Variable) variable APR
Sign-up Bonus: $0
Costco Credit Card Benefits:
- Earn unlimited 4% cash back on the first $7,000 spent yearly at gas stations
- Earn 3% cash back on restaurant and eligible travel purchases, 2% cash back on Costco purchases and 1% on all other purchases
- Travel and purchase protections
- No foreign transaction fees
- $0 annual fee with Costco membership
Costco Credit Card Fees:
- Up to $39 for late payments
- Either 5% or $10 per cash advance, whichever is higher
- 29.99% penalty APR
Why Apply for the Costco Anywhere Visa Credit Card
Here are some of the benefits you’ll receive with the Costco Credit Card:
High cash back rates
The Costco Credit Card offers some stellar earnings rates. You earn 4% cash back on the first $7,000 you spend in eligible gas purchases worldwide, 3% cash back on restaurant and eligible travel purchases, 2% on all Costco purchases and 1% on everything else. Those are great rates, especially when you consider the rates on many competing cards that charge annual fees. Even if you use this card only for gas purchases, you could earn $280 towards future Costco purchases, assuming you spend $7,000 per year on gas.
Great perks for travelers
Most store co-branded credit cards charge foreign transaction fees, but the Costco Credit Card doesn’t. That can save you a lot when you’re traveling outside the U.S.; typically, cards charge 3% outside the U.S. Cardholders also get a bunch of other travel perks such as rental car insurance, travel accident insurance, trip cancellation and interruption protection and travel and emergency assistance.
Great for loyal Costco fans
Considering the great cash-back rates for certain categories, the card’s a great addition for frequent Costco shoppers. Your credit card acts as your membership card when you walk through the front door, and you can rack up substantial rewards once a year to spend at the warehouse store, too.
Costco Anywhere Visa Credit Card: Drawbacks and Downsides
Check out these drawbacks and downsides to the Costco Credit Card before you sign up:
You need to be a Costco member
You may already be a Costco member, so it’s not necessarily a downside for you to carry the Costco Credit Card. But if you’re not a fan of the store, it may not be worth it. An annual membership to Costco can cost $60 or $120 depending on the tier, so think of that as an unofficial fee you’ll need to pay to keep the card.
Restrictive rewards redemption
While you have the potential to earn great rewards, they’re only valid for redemption at Costco. You can also only redeem your cash rewards once a year at a U.S. Costco location. That shouldn’t be an issue if you shop at the warehouse store regularly and don’t mind letting rewards accumulate. But if you’re looking for a more flexible rewards redemption, you’ll need to look elsewhere.
Costco Anywhere Visa Credit Card Alternatives
Here are a few alternatives if the Costco Anywhere Visa Credit Card isn’t the one for you,:
Blue Cash Preferred® Card from American Express
Though it charges a $0 introductory annual fee for one year, then $95 annual fee, the Blue Cash Preferred Card from American Express offers high cash back rates: 6% cash back on purchases up to $6,000 at U.S. supermarkets, 6% cash back on qualifying U.S. streaming subscriptions, 3% cash back at U.S. gas stations and transit and 1% on all other purchases. Other perks include car rental insurance and purchase protection.
The Chase Freedom offers 5% cash back on rotating categories, making it a great choice if you want a high earnings rate. You also get unlimited 1% cash back on all other purchases. Like the Costco Credit Card, the Chase Freedom has an annual fee of $0. You can earn even more cash back by shopping through Chase’s online shopping portal, too. Right now, you get a sign-up bonus of $150 once you spend $500 within the first three months of account opening.
Costco Anywhere Visa Credit Card FAQs
How do I redeem my rewards at Costco?
You can only redeem your rewards once a year with the Costco Credit Card. You’ll receive a rewards certificate in the mail for all your earned cash back. You can then bring the certificate to any U.S. Costco warehouse location to redeem for merchandise or cash.
Is the Costco Citi card any good?
This answer depends on your spending habits. If you’re an existing Costco member (or plan on being one) it’s a great option to earn mounds of cash back at Costco or Costco.com. It also offers some of the highest cash-back rates in its bonus categories of any credit card that doesn’t charge an annual fee. If you’re an avid Costco shopper, then it’s probably worth pulling the trigger.
Bottom Line: Should You Apply for the Costco Anywhere Visa Credit Card?
Costco enthusiasts will find that the Costco Credit Card is a great choice because of its high rewards potential and $0 annual fee. Since it’s a Visa, you can use the card at most retailers worldwide. If you spend a lot on gas, travel and dining, you’ll rack up lots of rewards. However, if you want more flexible rewards redemption choices and a sign-up bonus, look into other cards. Plug your spending into the CardCruncher tool to find the best card for you—it’s that simple to start earning rewards today.