Is the Costco Credit Card Worth It? Editor’s Review for 2023 (2024)

Pros

$0 Annual Fee
1 - 4% Cash Back on Purchases
No Foreign Transaction Fees

Cons

No Initial Rewards Bonus
In-Store Rewards Redemption Only
High Regular APR

Costco Anywhere Visa® Card by Citi

3.72 out of 5 rating1,022 Reviews1,022 Reviews

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Regular APR

20.49% (V)

Annual Fee

Rewards Rate

4% cash back on eligible gas and EV charging purchases for the first $7,000 per year and then 1% thereafter
3% cash back on restaurants and eligible travel purchases
2% cash back on all other purchases from Costco and Costco.com
1% cash back on all other purchases

Rewards Details

Discover one of Citi’s best cash back rewards cards designed exclusively for Costco members
4% cash back on eligible gas and EV charging purchases for the first $7,000 per year and then 1% thereafter
3% cash back on restaurants and eligible travel purchases
2% cash back on all other purchases from Costco and Costco.com
1% cash back on all other purchases
Receive an annual credit card reward certificate, which is redeemable for cash or merchandise at U.S. Costco warehouses, including Puerto Rico

Additional Info

*No annual fee with your paid Costco membership and enjoy no foreign transaction fees on purchases

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Is the Costco Credit Card Worth It?

The Costco Anywhere Visa® Card by Citi is worth applying for if you have a Costco membership and an excellent credit score. The Costco Credit Card has a $0 annual fee and gives 1 - 4% cash back, offering its bonus rates on gas/EV charging, travel, dining and Costco purchases. It’s also worth using abroad, as the card has a 0% foreign transaction fee.

The main downside is that rewards are only paid out once per year, each February, and you have to redeem in-store by December. Most rewards credit cards make it a lot easier to cash in.

What You Need to Do to Make the Costco Credit Card Worthwhile

To make the Costco Credit Card worthwhile, you should pay your bill in full every month, as the card has a 20.49% (V) interest rate, and that can quickly wipe out any value you get in rewards. You will also need to maintain a Costco membership, which will cost you $60+ per year. The card itself has a $0 annual fee and no initial bonus, so you don’t have to worry about meeting any card-specific spending thresholds.

Costco Credit Card Highlights

1 - 4% Cash Back on Purchases

The Costco Credit Card rewards cardholders with 2% cash back on Costco purchases. It actually offers higher rewards rates on 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. As a result, you might want to consider pairing the Costco Credit Card with another card that gives 1.5% - 2%+ back at a minimum.

$0 Annual Fee

The Costco Credit Card’s $0 annual fee makes it $21.64 per year cheaper than the average credit card offer. Costco membership is not included with the card, though.

$0 Foreign Transaction Fees

You will not be charged extra for making purchases internationally with the Costco Visa. In contrast, the average credit card offer has a foreign fee of 1.55%.

Costco Credit Card Lowlights

No Initial Rewards Bonus

The Costco Credit Card does not offer bonus rewards to new cardholders who spend a certain amount in the first few months after opening an account. The average cash rewards card gives $233, and the best credit card initial bonuses are worth several times more than that.

In-Store Rewards Redemption Only

To redeem Costco Credit Card rewards, you must actually go into a Costco store and use your earnings at check out. And if you don’t redeem between February and the end of the year, the rewards you have saved up from the previous year will expire.

This is my least favorite thing about the Costco Credit Card. Sure, Costco members are likely to be in the store regularly, but they could also use the extra savings throughout the year.

High APR for Excellent Credit

The Costco Credit Card APR is 20.49% (V). For comparison, the average credit card offer for people with excellent credit has an APR of 17.9%. The Costco Anywhere Visa does not currently offer a lower introductory rate as a promotion, either.

I strongly encourage anyone who gets this card to avoid interest charges by paying their bill in full every month. The whole point of getting a Costco membership and applying for the Costco Credit Card is to save money, and you’d squander those savings quickly if you carry a big balance from month to month.

Other Things to Consider About the Costco Credit Card

Costco Membership Required

Although the Costco Anywhere Visa has a $0 annual fee, there’s still a cost associated with the offer. Being a Costco member is among the card’s approval requirements, and a Costco membership will cost you at least $60 per year.

At least you can use your credit card as your Costco ID once approved.

Excellent Credit Score Needed for Approval

The Costco Credit Card’s credit score requirement is excellent credit, or a score of 750+. I suggest checking your credit score for free on WalletHub to gauge your odds of approval before you apply.

Costco Credit Card vs. the Competition

Costco Anywhere Visa® Card by Citi	Blue Cash Preferred® Card from American Express	Chase Freedom Unlimited®
3.7WalletHub Rating WalletHub Rating 3.7 This card has been scored using WalletHub’s proprietary credit card rating system. We evaluated this card for various cardholder needs and picked the rating for the need with the highest score, which is "Earn Gas Rewards." A score of 5 is the best a card can receive, and the rating for the card may vary on different pages where it is compared to other cards for different needs. Editor’s Rating 4.7 User Reviews 3.7 Market Comparison 3.5 fees: 5.0 rewards: 3.0 cost: 3.6 Other Features: 0.0	4.0WalletHub Rating WalletHub Rating 4.0 This card has been scored using WalletHub’s proprietary credit card rating system. We evaluated this card for various cardholder needs and picked the rating for the need with the highest score, which is "Earn Rewards." A score of 5 is the best a card can receive, and the rating for the card may vary on different pages where it is compared to other cards for different needs. Editor’s Rating 4.7 User Reviews 3.9 Market Comparison 3.9 fees: 2.1 rewards: 4.3 cost: 4.6 Other Features: 0.0	4.2WalletHub Rating WalletHub Rating 4.2 This card has been scored using WalletHub’s proprietary credit card rating system. We evaluated this card for various cardholder needs and picked the rating for the need with the highest score, which is "Earn Rewards." A score of 5 is the best a card can receive, and the rating for the card may vary on different pages where it is compared to other cards for different needs. Editor’s Rating 5.0 User Reviews 3.6 Market Comparison 4.1 fees: 3.8 rewards: 3.4 cost: 4.9 Other Features: 0.0
(1022)	(1578)	(778)
annual fee$0	annual fee$0 intro 1st yr, $95 after	annual fee$0
rewards rate 4% cash back on eligible gas and EV charging purchases for the first $7,000 per year and then 1% thereafter 3% cash back on restaurants and eligible travel purchases 2% cash back on all other purchases from Costco and Costco.com 1% cash back on all other purchases 1 - 4% Cash Back	rewards rate 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%). 6% Cash Back on select U.S. streaming subscriptions. 3% Cash Back at U.S. gas stations. 3% Cash Back on transit (including taxis/rideshare, parking, tolls, trains, buses and more). 1% Cash Back on other purchases. Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit. Terms Apply. 1 - 6% Cash Back	rewards rate Unlimited 1.5% cash back is just the beginning of what you can earn. You'll enjoy 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery services, 5% cash back on travel purchased through Chase Ultimate Rewards®, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; and 1.5% cash back on all other purchases. 1.5 - 5% Cash Back
bonus offerN/A	bonus offer$250	bonus offerN/A
Purchase Intro APRN/A	Purchase Intro APR0% for 12 months	Purchase Intro APR0% for 15 months
transfer intro aprN/A	transfer intro apr0% for 12 months Transfer Fee: 3% (min $5)	transfer intro apr0% for 15 months Transfer Fee: Either $5 or 3% of the amount of each transfer, whichever is greater in the first 60 days (5%, min $5 after)
Regular APR20.49% (V)	Regular APR19.24% - 29.99% (V)	Regular APR20.49% - 29.24% (V)
Apply Now	Apply Now Terms Apply	Apply Now

Costco Anywhere Visa® Card by Citi Review Methodology

1,500+Credit Cards Scored

100Point Rating System

26User Needs Considered

75,000Data Points Tracked

This Costco Anywhere Visa® Card by Citi review is based on WalletHub’s proprietary 100-point credit card rating system. By using a consistent methodology to evaluate the Costco Anywhere Visa® Card by Citi and all other cards, WalletHub’s credit card experts make it easy for people to compare their options and find the best credit cards for their needs.

The WalletHub rating system uses 16 key metrics grouped into seven categories: Fees, Rewards, Two-year Cost, Interest Rates, Approval Requirements, Special Features, and Reviews. Each metric has a maximum number of points allocated to it, based on the metric’s importance as determined by our editors. The points are added up to create an overall rating for the Costco Anywhere Visa® Card by Citi out of a maximum of 100 points, which is then converted to a 5-point scale.

Ratings for each category reflect how close Costco Credit Card is to WalletHub’s definition of a 5-star credit card, which is based on market conditions and what we believe are reasonable terms. We compare Costco Credit Card to that standard to give a numerical approximation of how reasonable and competitive its terms are compared to other cards.

To learn more about how WalletHub rates credit card offers, check out our full credit card review methodology.

About the Author

Adam McCann

Adam McCann is a personal finance writer for WalletHub who also helps produce WalletHub's weekly 'Best and Worst' studies. Adam graduated from Johns Hopkins University in 2017 with a Bachelor of Arts in both Writing Seminars and International Studies.

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Disclaimer: Editorial and user-generated content is not provided or commissioned by financial institutions. Opinions expressed here are the author’s alone and have not been approved or otherwise endorsed by any financial institution, including those that are WalletHub advertising partners. Our content is intended for informational purposes only, and we encourage everyone to respect our content guidelines. Please keep in mind that it is not a financial institution’s responsibility to ensure all posts and questions are answered.

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As a financial expert with extensive knowledge in credit cards and personal finance, I can confidently delve into the details of the Costco Anywhere Visa® Card by Citi and provide insights into its features, pros, and cons.

Firstly, the Costco Anywhere Visa® Card by Citi is designed exclusively for Costco members, offering a range of cash back rewards on various purchases. The evidence supporting the information provided in the article lies in the comprehensive breakdown of the card's features, including its rewards structure, fees, and comparisons with other credit cards.

Key Concepts and Information:

Annual Fee:
- Pros: The card boasts a $0 annual fee, making it more cost-effective compared to the average credit card offer.
- Cons: No initial rewards bonus, meaning new cardholders won't receive extra rewards for reaching a spending threshold.
Cash Back Rewards:
- Pros: Offers 4% cash back on eligible gas and EV charging purchases for the first $7,000 per year and then 1% thereafter. Additionally, provides 3% cash back on restaurants and eligible travel purchases, 2% cash back on all other purchases from Costco and Costco.com, and 1% cash back on all other purchases.
- Cons: Rewards are distributed once per year in February, and in-store redemption is required by December. This limitation may not be as flexible as other rewards credit cards.
Foreign Transaction Fees:
- Pros: No foreign transaction fees, making it a suitable card for international use.
Credit Score Requirement:
- Details: Excellent credit (a score of 750+) is needed for approval.
APR (Annual Percentage Rate):
- Cons: The card has a relatively high regular APR of 20.49% (Variable), especially when compared to the average APR for people with excellent credit.
Costco Membership Requirement:
- Details: While the card itself has a $0 annual fee, it is emphasized that a Costco membership, costing at least $60 per year, is required for approval.
Redemption Process:
- Cons: Rewards can only be redeemed in-store between February and the end of the year, and if not redeemed during this period, the accumulated rewards expire.
Comparison with Other Credit Cards:
- The article provides a detailed comparison with other credit cards, such as the Blue Cash Preferred® Card from American Express and the Chase Freedom Unlimited®, emphasizing factors like fees, rewards rates, and overall ratings.
WalletHub's Rating System:
- The article introduces WalletHub's proprietary 100-point credit card rating system, which evaluates the Costco Anywhere Visa® Card by Citi across various metrics, including fees, rewards, and user reviews.
Author Information:
- The article concludes with information about the author, Adam McCann, establishing his credibility and background in personal finance and writing for WalletHub.

In summary, the Costco Anywhere Visa® Card by Citi appears to be a beneficial option for Costco members with excellent credit, particularly for those who can maximize rewards on gas, travel, and dining. However, potential cardholders should carefully consider the drawbacks, such as the infrequent reward payouts and the requirement for in-store redemption.