The Costco Anywhere Visa® Card by Citi is a popular choice for Costco members. It offers high rewards rates for gas purchases (4% cash back up to $7,000 spent per year), travel (3% cash back), and dining at restaurants (3% cash back). All other purchases provide 1% cash back, which is about average for a rewards card. The card also offers cash back on Costco purchases.
If you often shop at Costco or spend a lot on gas and travel, this card could be a good option. Keep in mind that you need both a Costco membership and a high credit score to qualify for the card. There is no annual fee, which is appealing for Costco members. The 4% cash back on gas and 3% on dining and travel can add up quickly. One thing to consider is that the rewards are redeemed once a year at Costco, which might be inconvenient for some people. However, for loyal Costco shoppers, the benefits might outweigh this limitation. To get the most value, assess how much you spend in these categories and compare it to other credit card options.
This guide examines the pros and cons of the card, outlining its rewards, fees, and benefits to help you make an informed decision.
Analyzing the Value of the Costco Anywhere Visa® Card by Citi
Benefits of the Costco Anywhere Visa Card
- High Cash Back Rewards: Earn up to 4% cash back on eligible gas and EV charging (up to $7,000 per year), 3% on restaurants and travel, 2% on Costco purchases, and 1% on all other purchases.
- No Annual Fee: Enjoy the card’s benefits without paying an annual fee, as long as you maintain your Costco membership.
- Worldwide Acceptance: Use your card anywhere Visa is accepted, both in the US and internationally.
- No Foreign Transaction Fees: Save money when traveling abroad by avoiding extra charges for foreign transactions.
- Exclusive Benefits: Get special offers and discounts on travel, rental cars, and other services.
Drawbacks of the Costco Anywhere Visa Card
- Limited Redemption: Rewards are issued annually as a voucher that can only be redeemed at Costco warehouses.
- Requires Costco Membership: You must be a Costco member to apply and use the card.
- High APR: The card’s interest rate is higher than average, so avoid carrying a balance if possible.
- No Sign-up Bonus: Unlike many other rewards cards, the Costco card doesn’t offer a sign-up bonus.
Who Should Get the Costco Anywhere Visa Card?
- Frequent Costco Shoppers: If you regularly shop at Costco and spend a significant amount on gas, dining, and travel, the card can be a valuable way to earn rewards.
- Budget-Conscious Consumers: The card’s lack of an annual fee and no foreign transaction fees make it a good option for those who want to save money.
- Travelers: The card’s travel benefits and lack of foreign transaction fees can be appealing to frequent travelers.
Who Should Avoid the Costco Anywhere Visa Card?
- Those Who Carry a Balance: The high APR can make the card expensive if you don’t pay your bill in full each month.
- Those Seeking a Variety of Redemption Options: If you prefer more flexible rewards, other cards may offer more options for redeeming points or cash back.
Costco Anywhere Visa Card Features at a Glance
| Feature | Details |
|---|---|
| Cash Back | 4% on gas/EV charging (up to $7,000/year), 3% on restaurants and travel, 2% on Costco, 1% on all other purchases |
| Annual Fee | $0 |
| Foreign Transaction Fee | $0 |
| Welcome Bonus | None |
| Rewards Redemption | Annual voucher redeemable at Costco |
Whether the Costco Anywhere Visa Card is worth it for you depends on your spending habits and preferences. If you’re a loyal Costco shopper who spends a significant amount on eligible categories, the card can be a great way to maximize your rewards. However, if you prefer more flexibility with your rewards or carry a balance on your credit card, other options might be a better fit.
Before applying, carefully weigh the pros and cons and compare it to other rewards cards to determine if it’s the right choice for you.
Key Takeaways
- The card gives valuable rewards for common spending categories.
- A Costco membership and high credit score are needed.
- Rewards can only be redeemed at Costco each year.
Evaluating the Costco Anywhere Visa Card by Citi
The Costco Anywhere Visa Card by Citi offers several benefits, including a robust rewards program, but it does come with specific requirements and fees. Below, each aspect of the card is scrutinized to help you determine if it suits your needs.
Financial Prerequisites and Membership Requirements
To get the Costco Anywhere Visa Card, you must have a Costco membership, which costs $60 or $120 a year based on the type of membership (Gold Star or Executive). The card also requires excellent credit, so it might not be available to everyone. If you already shop at Costco, this card can complement your membership with additional rewards.
Reward Structures and Benefits
The rewards program includes 4% cash back on eligible gas and EV charging purchases up to $7,000 yearly, 3% on dining and travel purchases, 2% on Costco purchases, and 1% on all other purchases. These rewards make it valuable if you frequently spend in those categories. The earnings are given as an annual certificate, redeemable at Costco.
Fees and Rates Overview
This card has no annual fee beyond your Costco membership. The regular APR can range from moderate to high, so it’s best for those who can pay off their balance monthly. There are no foreign transaction fees, making it useful for international travel. Note that the card does not offer an intro APR period.
Using Rewards and Redemption Process
Rewards are issued annually in the form of a reward certificate, which you can redeem at U.S. Costco warehouses for merchandise or cash. Keep in mind that you must use the certificate within a certain time frame or it will expire. This process rewards those who shop at Costco often and can plan their redemptions accordingly.
Comparison With Other Credit Cards
Compared to other cash-back cards like the Chase Freedom Unlimited or Discover cards, the Costco Anywhere Visa offers higher cash back on gas and dining but may fall short without initial bonuses or flexible redemption options. It’s specialized for Costco members, so if you don’t shop there often, other cards might suit you better.
Additional Perks and Insurance Benefits
This card provides extra perks aligned with travel and shopping protections, including car rental insurance, travel accident insurance, and extended warranty protection on purchases made with the card. This can add significant value, especially during trips or when buying high-value items.
Overall, for active Costco members with excellent credit, this card can be a rewarding choice.
Frequently Asked Questions
The Costco credit card offers various perks for members, such as cash back on purchases, no annual fee, and travel benefits. This section addresses common questions to help readers understand if this card meets their needs.
What are the benefits of having a Costco credit card?
The Costco Anywhere Visa Card by Citi offers cash back on gas, travel, dining, and Costco purchases. It has no annual fee if you have a Costco membership. Rewards can be redeemed at Costco.
What is the minimum income requirement for a Costco credit, and what are the approval criteria?
Specific income requirements are not provided publicly. Approval generally depends on having good to excellent credit. Expect a review of your credit score, history, and financial stability.
Does the Costco credit card include an annual fee, and can it be waived with a membership?
The card itself has no annual fee. However, you must have a Costco membership, which costs $60 or $120 annually, depending on the type.
How does the Costco credit card compare to other credit cards for travel rewards and benefits?
The Costco card offers competitive cash back on travel-related expenses without an annual fee, making it a good choice for travelers who are Costco members. It might not offer all the premium perks that some travel-specific cards have.
Are there any disadvantages or limitations associated with the Costco Mastercard?
A key limitation is that it can only be used where Visa is accepted. Also, rewards earned can only be redeemed at Costco. If you don’t frequently shop at Costco, this might be a disadvantage.
How can customers manage their Costco Visa Card accounts online?
Customers can manage their accounts through Citi’s online portal. This allows for checking balances, viewing transactions, making payments, and managing account settings. The app is also available for mobile management.
