Costco Credit Card: Benefits, Rewards, and How to Apply

The Ultimate Guide to the Costco Credit Card: Benefits, Rewards, and How to Apply

If you’re a Costco member or thinking about becoming one, the Costco credit card might be a great addition to your wallet.

Issued by Citi, the Costco Anywhere Visa® Card offers substantial cash back on everyday purchases, including at Costco, as well as other perks that make it stand out from many other credit cards.

In this guide, we’ll break down the key benefits, how to maximize rewards, and the steps to apply.

What is the Costco Credit Card?

The Costco Anywhere Visa® Card by Citi is a credit card designed for Costco members.

This card not only serves as a membership card, but it also provides robust rewards on a wide range of spending categories, making it appealing even outside Costco shopping.

Key Benefits of the Costco Credit Card

1. 4% Cash Back on Gas: You can earn 4% cash back on eligible gas purchases worldwide, up to $7,000 per year. After reaching that cap, the rewards drop to 1%. This is a competitive rate for gas purchases and can be a significant perk if you drive frequently.
2. 3% Cash Back on Restaurants and Travel: Whether you’re dining out or booking a vacation, the Costco credit card offers 3% cash back on restaurant and eligible travel purchases. This makes the card valuable for both daily life and vacations.
3. 2% Cash Back at Costco: For purchases made at Costco (in-store and online), you earn 2% cash back. If you’re already shopping regularly at Costco, this is an excellent way to save even more.
4. 1% Cash Back on Other Purchases: For everything else that doesn’t fall into the above categories, the card provides 1% cash back, ensuring you still earn on all your everyday spending.
5. No Annual Fee: The Costco credit card has no annual fee as long as you maintain a Costco membership, which is an essential requirement to apply.
6. No Foreign Transaction Fees: If you travel internationally, you can use the Costco credit card without worrying about foreign transaction fees. This can save you money when making purchases abroad.

How to Maximize Rewards with the Costco Credit Card

To get the most value out of your Costco credit card, focus on using it for purchases that fall into the higher cash back categories:

• Gas: Make sure to use the card when filling up your tank to take advantage of the 4% cash back.
• Dining Out and Travel: Use the card for restaurants and travel bookings to benefit from the 3% cash back.
• Costco Shopping: Use your Costco credit card for your Costco purchases to earn the 2% cash back and combine it with other savings from your membership.

By strategically using your card for gas, travel, dining, and Costco shopping, you can accumulate significant cash back throughout the year.

How to Redeem Costco Credit Card Rewards

One key thing to note is that the rewards you earn with the Costco credit card are issued once a year.

Each February, you’ll receive a reward certificate for the cash back you earned in the previous year, which can be redeemed at any Costco location.

It’s important to note that you must redeem your rewards in-store at Costco, and if you don’t use the entire certificate at once, the remaining balance will be given as cash.

How to Apply for the Costco Credit Card

Applying for the Costco credit card is a straightforward process, but you must be a Costco member to be eligible. Here’s how to apply:

1. Online Application: Visit the Citi or Costco website to fill out the online application for the Costco Anywhere Visa® Card. You’ll need to provide personal and financial information, such as your Costco membership number, income, and Social Security number.
2. In-Store Application: You can also apply for the card at your local Costco. Simply visit the membership desk, and they will guide you through the application process.
3. Approval: Once approved, you’ll receive your Costco credit card in the mail, which also serves as your Costco membership card.

Is the Costco Credit Card Right for You?

The Costco credit card is an excellent choice if you’re a Costco member who frequently shops at the warehouse or spends on gas, dining, and travel.

The card offers solid rewards in multiple categories and has no annual fee, making it a valuable tool for saving money on everyday expenses.

However, if you don’t shop at Costco regularly or if your spending doesn’t align with the card’s bonus categories, you might want to consider other cash back or rewards credit cards that better suit your spending habits.

Conclusion

The Costco credit card is a powerful option for Costco members looking to earn cash back on gas, dining, travel, and Costco purchases.

With no annual fee beyond your Costco membership and the ability to earn significant rewards, it’s a card worth considering.

By maximizing your spending in the higher cash back categories, you can make the most of what the Costco credit card has to offer.

If you’re a frequent Costco shopper or want a versatile rewards card, the Costco Anywhere Visa® Card by Citi could be an excellent addition to your wallet.