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Costco has inspired a cult-like following with shoppers dedicated to bulk discounts, Kirkland products and low-cost rotisserie chicken. If you count yourself as a loyal Costco consumer, you've probably been asked to apply for the Costco Anywhere Visa® Card by Citi at checkout.
While the card offers a robust rewards program, you may wonder if it's really the best credit card for Costco purchases, offering 2% cash back on all eligible purchases from Costco and Costco.com.
When CNBC Select crunched the numbers, we found that consumers can earn competitive rewards with the Costco Anywhere Visa® Card. Below, we break down the card's rewards, benefits and fees to help you decide if it's the right card for you.
The Costco Anywhere Visa® Card by Citi is a valuable card to pair with a Costco membership, but the rewards program is more restrictive than what you get with a typical cash-back card.
- High rewards rates for gas/EV charging and travel
- No foreign transaction fees
- Restrictive rewards that you can only cash out once per year
- Requires a paid Costco membership
- No welcome bonus
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- 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
- No annual fee with your paid Costco membership and enjoy no foreign transaction fees on purchases
- Receive an annual credit card reward certificate, which is redeemable for cash or merchandise at U.S. Costco warehouses, including Puerto Rico
Balance transfer fee
5% of each balance transfer; $5 minimum
Foreign transaction fee
None
Welcome bonus
This card currently doesn't offer a welcome bonus, so there's no need to hit a specific spending goal.
How to earn and redeem cash back
Earning
The Costco Anywhere Visa® Card has a tiered rewards program that benefits commuters, foodies and travelers. Here are the rewards you earn:
- Earn 5% cash back 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
Surprisingly, you don't earn the most amount of cash back on Costco purchases, but 2% cash back is still competitive.
Many of the best credit cards for grocery shopping exclude warehouses, such as Costco. For example, the Blue Cash Preferred® Card from American Express offers 6% cash back* at U.S. supermarkets on up to $6,000 per year in eligible purchases (then 1%) — but since Costco is excluded, purchases at the retailer will only earn 1% cash back. Terms apply. Therefore, the Costco Anywhere Visa® Card is a better choice for frequent shoppers of the wholesale club (especially since Costco only accepts Visa-backed credit cards in-store).
Credit cards that offer quarterly rotating 5% bonus categories, such as the Chase Freedom Flex®, may include warehouse clubs as a bonus category — but only for one quarter. (Check out the current Chase Freedom 5% cash-back calendar.)
Redeeming
The cash back you earn is provided via an annual reward certificate once your February billing statement closes. You have to go to a U.S. Costco warehouse to redeem the certificate for cash or merchandise, which may be a hassle if you don't live near a Costco and instead shop on Costco.com. Learn more about how to redeem Costco credit card rewards.
In comparison, other credit cards allow you to redeem rewards online or via a mobile app, typically within one billing cycle of earning them. And there are even cards that award cash back at the end of every day, such as the Apple Card's daily cash program.
Benefits and perks
The Costco Anywhere Visa® Card offers a variety of perks beyond its rewards program. Here are some key benefits:
- Travel and emergency assistance
- Travel accident insurance
- Worldwide travel accident insurance
- Worldwide car rental insurance
- Roadside assistance dispatch service
- Damage and theft purchase protection
- Presale ticket access and preferred seating with Citi Entertainment
Terms apply for all benefits.
Rates and fees
The Costco Anywhere Visa® Card has no annual fee, but requires an active Costco membership, which starts at $65 for a standard Gold Star membership and doubles to $130 for executive level. If you already have a Costco membership, this isn't a deal-breaker. But if you currently piggyback off someone else's Costco membership, you'll need to fork over at least $65 for a membership.
This card has a 18.74% to 26.74% variable APR on purchases and balance transfers and no foreign transaction fees.
What credit score is required for the Costco Anywhere Visa?
Applicants need to have excellent credit to qualify for the Costco Anywhere Visa® Card. The exact credit score required varies, but typically will fall into the 740 to 850 score range.
Card comparison
Costco Anywhere Visa vs. Wells Fargo Active Cash® Card
While the Costco Anywhere Visa is great for loyal Costco customers, if you typically shop at other stores or want to take advantage of more flexible rewards, you may want to consider another Visa credit card like the Wells Fargo Active Cash® Card. Costco only accepts Visa-branded credit cards for in-store purchases, so they are the only potential alternatives to the Costco credit card.
The Wells Fargo Active Cash earns a flat 2% cash rewards on purchases, along with a welcome bonus of $200 cash rewards bonus after spending $500 in purchases in the first three months of account opening.
Unlike the Costco Anywhere card, this card also provides a short intro APR on purchases and qualifying balance transfers. This can be useful for large Costco purchases where you might need extra time to pay it off without incurring any interest.
The Wells Fargo Active Cash® Card is great if you want simplicity thanks to its flat-rate 2% unlimited cash rewards on purchases and $0 annual fee.
- High, unlimited flat-rate return on purchases
- Intro APR on purchases and qualifying balance transfers
- Lower introductory balance transfer fee
- Up to $600 of cell phone protection against damage or theft (subject to a $25 deductible)
- Charges a 3% foreign transaction fee
- Balance transfer fee increases to 5% of each transfer (minimum $5) after 120 days
- Limited redemption options unless you pair it with a Wells Fargo card that allows point transfers
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Apply Now to take advantage of this offer and learn more about product features, terms and conditions.
- Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
- Earn unlimited 2% cash rewards on purchases.
- 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers. 18.49%, 24.49%, or 28.49% variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5.
- $0 annual fee.
- No categories to track or remember and cash rewards don't expire as long as your account remains open.
- Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
- Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
Balance Transfer Fee
3% intro for 120 days from account opening, then up to 5%, min: $5
Foreign Transaction Fee
3%
Costco Anywhere Visa vs. Chase Freedom Unlimited®
Another card to consider is the Chase Freedom Unlimited® (see rates and fees), which has no annual fee and earns 5% cash back on travel purchased through Chase TravelSM, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and an unlimited 1.5% back on all other purchases.
Similar to the Wells Fargo Active Cash, it features a $200 bonus after you spend $500 on purchases in your first three months from account opening. You can also take advantage of a slightly longer intro APR on purchases and balance transfers.
It gets better: If you have another Chase Ultimate Rewards® earning card like the Chase Sapphire Preferred® Card (see rates and fees), you can convert the rewards you earn into transferable Ultimate Rewards® points and potentially get much more value than 1 cent per point. Chase's transfer partners range from United MileagePlus to Southwest Rapid Rewards and World of Hyatt, giving you lots of opportunities to save on flights and hotels.
The Chase Freedom Unlimited® is a no-annual-fee card that earns generous cash-back on everyday purchases and a lucrative welcome bonus. Plus, if you pair it with a premium Chase credit card that allows point transfers, you can convert your cash back into flexible travel rewards.
- Users get a high rewards rate and strong welcome bonus
- Purchases and balance transfers receive an intro APR
- No annual fee
- Has a foreign transaction fee
- Few rewarding ongoing benefits
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening
- Enjoy 5% cash back on travel purchased through Chase TravelSM, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 1.5% on all other purchases.
- No minimum to redeem for cash back. You can use points to redeem for cash through an account statement credit or an electronic deposit into an eligible Chase account located in the United States!
- Enjoy 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 18.24% - 27.74%.
- No annual fee – You won't have to pay an annual fee for all the great features that come with your Freedom Unlimited® card
- Keep tabs on your credit health, Chase Credit Journey helps you monitor your credit with free access to your latest score, alerts, and more.
- Member FDIC
Balance transfer fee
Intro fee of either $5 or 3% of the amount of each transfer, whichever is greater, in the first 60 days. After that, either $5 or 5% of the amount of each transfer, whichever is greater.
Foreign transaction fee
3% of each transaction in U.S. dollars
Is the Costco Anywhere Visa right for you?
The Costco Anywhere Visa card provides useful rewards and perks for loyal Costco shoppers, as well as those who spend a significant amount on gas and electric vehicle charging. However, if you're looking to maximize your rewards for other types of spending or don't like the idea of only receiving rewards once a year, you may want to consider other options.
The Costco Anywhere Visa is a good option for loyal Costco fans and travelers who don't mind receiving rewards once a year. However, if you don't shop at Costco regularly, or if you prefer to do most of your food shopping at supermarkets, consider other rewards cards.
- Earns strong rewards on Costco purchases and gas and EV charging
- No annual fee for Costco members
- No foreign transaction fees
- Rewards are provided once a year via an annual reward certificate(after your February billing statement closes)
- Gas rewards categories are capped at $7,000 in combined purchases per year
- Requires a Costco membership
FAQs
Is it worth getting the Costco credit card?
If you're a loyal Costco shopper, especially one who uses their gas stations, this card could make a lot of sense for you thanks to its high cash-back rates.
Is a Costco credit card hard to get?
The Costco Anywhere Visa requires a very good or excellent credit score for approval, or a FICO Score of 740 and up. As such, it's harder to get than other cards.
Is there a better credit card than the Costco Visa?
If you don't shop at Costco very often, absolutely. It will depend on where you spend most, but you may benefit from either a general rewards card with everyday bonus categories or a flat-rate cash-back card.
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At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every credit card review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of credit card products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best credit cards.
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* Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.
