The Costco Anywhere Visa is a basic card with a restrictive rewards program. Although it technically doesn’t have an annual fee, the card is exclusively for Costco members. The credit card has reasonable earn rates for gas, dining, and travel. According to Business Insider, the Costco credit card is one of the most popular cards in terms of interest. Over 900,000 monthly searches are done for information on the card. Unfortunately, its value isn’t as straightforward as it first appears.
FEATURES AT A GLANCE
- No annual fee (but requires a $60+ Costco membership)
- No foreign transaction fees
- 4% cash back on gas (up to $7,000 in annual spending)
- 3% cash back on dining
- 3% cash back on eligible travel
- 2% cash back on Costco purchases
- 1% cash back on everything else
SIGN UP BONUS
This card doesn’t offer a sign-up bonus.
OTHER BENEFITS OF THE COSTCO CREDIT CARD
- Visa basic benefits
- Extended Warranty (discontinued as of January 22nd 2023)
- “Damage & Theft Purchase Protection may cover you for repairs or a refund if purchases made with your Citi card are damaged or stolen within 120 days of purchase (90 days for New York residents).”
RESTRICTIONS AND CREDIT SCORE
Recommended credit score: 740+
A Costco membership is required to apply for the card and use it. Membership is $60 or $120 per year, depending on which plan you choose. This card isn’t good enough to justify the membership fee by itself, because other credit cards earn more cash back in every category. Only current Costco members should consider this card.
Other restrictions apply to cash back rewards:
MAXIMIZING REWARDS WITH COSTCO
Unlike most credit cards, you don’t get your cash back at the end of each monthly billing period. You get a “reward certificate” once per year which always expires on December 31st. The certificate can be redeemed at Costco for cash or merchandise. If you close your credit card account or lose Costco membership before receiving your reward certificate, you may lose any rewards you’ve earned.
“Eligible travel purchases” includes airfare, hotels, car rentals, travel agencies, cruise lines, and travel booked through Costco Travel. This excludes important categories like public transit, taxis, parking, and tolls.
American households typically spend about $2,218 per year on gas, $3,675 per year with restaurants, and $2,244 per year traveling. This would earn Costco rewards to the tune of $266.29 annually ($88.72 + $110.25 + $67.32). These estimated rewards don’t include Costco purchases or other card usage.
Costco’s Executive Membership has an extra rewards program: 2% back (awarded once per year, maximum $1,000 reward) on “qualified Costco purchases.” This includes Costco stores, Costco.com, and Costco Travel. It excludes categories like gasoline and their food courts. You’d have to spend over $3,000 per year ($250 per month) to make Executive Membership worthwhile ($60 reward). It completely pays for itself with $6,000 in annual Costco spending ($120 reward). It doesn’t require having the Costco Visa, though, so you can add this perk alongside other cards. Any Visa that earns 3% cash back at wholesale clubs will fit the bill.
ALTERNATIVES TO THE COSTCO CARD
The Citi Custom Cash Card (CCCC) gives 5% cash back on one category of your choice.
A few cards give 5% or better on gas purchases, including:
- USAA Cashback Rewards Plus – 5% back
- Abound Credit Union (formerly Fort Knox Credit Union) – 5% back
- Discover It – 5% back (3 months per year)
- Chase Freedom Flex – 5% back (3 months per year)
- Nusenda Credit Union – 5% back (6 months per year)
The Chase Freedom Flex (or Unlimited) also gives 3% cash back at restaurants and drugstores year-round, plus 5% cash back on travel through Chase’s website. As of early 2022, 5% is the standard earn rate for travel booked through websites like Capital One, Chase, and U.S. Bank.
The PNC Cash Rewards gives a limited 4% back on gas and 3% back on dining. Several other cards earn 3% cash back or better on travel, restaurant purchases, and more.
Our top recommendation for cashback/convenience is the NIH Federal Credit Union Cash Rewards Visa. It earns 3% back for groceries, wholesale clubs, utilities, streaming, gas, EV charging, and rideshare/taxis. No annual fee, unlimited rewards, multiple earn categories.
A card with 2+% cash back on all purchases can fill in the gaps. The Costco card offering 2% cash back at Costco (and 1% elsewhere) is unnecessarily limiting when many cards earn 2-3% cash back on everything without restrictions. Costco’s 2% back is only a good idea when effectively combined with Executive Membership for bonus cash back rewards. However, you can use other cards, like the Venmo Visa which earns 3% back at wholesale clubs. Venmo + Executive Membership equals 5% cash back at Costco.
Here’s one option for a setup that beats the Costco card:
- Abound CU – 5% on gas
- Citi Custom Cash – 5% on dining
- NIH FCU Cash Rewards – 3% at Costco and grocery stores, plus 3% on streaming and rideshare
- Capital One Venture X – up to 10% on travel, and 2% on everything else
CONCLUSION
The Costco Anywhere is often a poor card for earning rewards. A combination of alternatives likely gives you better cash back and flexibility. Zero sign-up bonus makes this credit card unattractive in the short term. In the long term, if you decide to stop being a Costco member, you’ll be forced to get rid of this credit card. This may hurt your credit score and eliminate your cash back rewards. Opening an account shouldn’t be so risky, and it’s hard to recommend the Costco card. Its main benefit is having three categories that earn at least 3% cash back, which isn’t rare.
We’d personally avoid the Costco credit card. It’s not the worst for everyday spending, but there are better options. This is an extremely restrictive card, has a semi-outdated earning structure, and isn’t best-in-class for its categories. It’s only for people who’ll be lifetime Costco members, ideally Executive members. For everyone else, they can get better value with fewer limitations.
The only real reason to get the Costco card is if you don’t want to have multiple credit cards.
We rate the Citi Costco card 2 out of 5 stars. ⭐⭐
Note: This review was last updated in November 2022. Details may have changed since then. Please do your own research where applicable, to ensure you’re getting the best deal. Or contact us directly to benefit from our personalized consulting services!