Review: Costco Credit Card

Costco-visaCostco only accepts Visa credit cards in its stores, and the popular warehouse club offers its own Visa in partnership with Citibank to give its members some exclusive rewards. Is it a card worth switching to? Maybe so. Our complete overview / review of the Costco credit card is below:

The Costco Anywhere Visa by Citi has one good thing going for it right off the bat: it is a Visa card, so it is accepted widely both inside and outside of Costco. We much prefer this to many store credit cards that are tied only to a single retail chain. Opening new credit lines can cause a ding on your credit report, especially if your credit isn’t great, so you are better off selecting cards that can be used widely.

The Costco credit card also offers some nice rewards for Costco members. You get:

  • 4% cash back on gas purchases (on up to $7000 per year)
  • 3% cash back on travel and restaurant purchases
  • 2% cash back on Costco and purchases
  • 1% cash back on all other purchases.

Note that you get the cash back you’ve accumulated just once per year in February, so there is less flexibility with this card than with other cash back cards.

There is no annual fee for the card (although you must be a paid Costco member to get it), and it has an interest rate of 15.49%, which is acceptable though not great.

Overall we like this card for the frequent Costco shopper who spends a lot on gas, travel and restaurant purchases. However, if gas/travel/restaurants is not a big part of your budget, you may be better off with a cash back card that gives you 1.5% or higher on all your purchases.

If you’d like to apply for the Costco credit card, you’ll find an online application here.