In June 2016, Costco made a significant change when it stopped accepting American Express cards and started exclusively accepting Visa cards. Along with the switch, Costco is now offering new co-branded credit cards, the Costco Anywhere Visa® Card by Citi, as well as a business version of the same card.

Although you must be a Costco member to apply for the credit card, you can use it at any merchant that accepts Visa. It may even offer a higher Cash back rewards rate than other rewards cards.

Although you must be a Costco member to apply for the credit card, you can use it at any merchant that accepts Visa. It may even offer a higher cash back rewards rate than other rewards cards.

Highlights

• 4% cash back on your first $7,000 worth of purchases at eligible gas stations (including non-Costco gas stations) each year. You’ll receive 1% cash back for additional gas purchases over the $7,000
• 3% cash back on eligible restaurant and travel purchases, such as airline tickets, hotel stays, car rentals, cruises, and travel booked through Costco Travel
• 2% cash back on purchases at Costco warehouses and online at Costco.com
• 1% back on all other purchases
• No annual fee
• Receive your cash back from the previous year as a reward certificate along with your February statement

At a glance

Costco Anywhere Visa® Card by Citi deep dive

Whether you enjoy stocking up on groceries and household supplies, or use Costco’s other membership benefits, such as Costco Travel or the Costco Auto Program, the Costco Anywhere Visa® Card could be a worthwhile addition to your wallet.

You will need to have a Costco membership, which starts at $60 a year, to be eligible for the credit card. If you end your Costco membership, Citi will close your card account and you’ll lose the rewards you accrued unless they were already issued as a rewards certificate.

Get it: If you have a Costco membership, live near a Costco warehouse store, or want to earn cash back while eating out, traveling, or buying gas

The Costco Anywhere Visa® Card offers cardholders a relatively high rewards rate, especially for a card that doesn’t have an annual fee. And although you’ll need to redeem your rewards at a Costco warehouse, you can earn cash-back on all your eligible purchases.

Some of the benefits of the Costco Anywhere Visa® Card by Citi include:

• Great bonus cash back rates: Only a few cards offer 3% cash back on restaurant and travel purchases year-round, and even fewer have this perk without charging cardholders an annual fee. The 4% cash back on your first $7,000 spent at gas stations is also a great rate for a no-fee card
• Unlimited cash back: The bonus cash back rates on restaurant, travel, Costco, and Costco.com purchases aren’t subject to any spending caps
• Introductory 0% interest offer on purchases: As a new cardholder, you won’t have to pay interest on purchases for the first seven months. Have a plan to pay off the balance by the end of the introductory period to avoid accruing interest on your purchases after it ends. Beware, balance transfer and cash advances aren’t part of the same promotion and will accrue interest
• Use the card as your Costco membership ID: If you need to present your Costco membership at a rental car agency, warehouse club, or for some other reason, you can show your Costco Anywhere Visa® Card by Citi instead
• Purchase protection: The card includes some helpful benefits, such as extending manufacturers’ warranties on purchases for up to a year and covering the cost of repair or replacement if an item you buy is damaged or stolen within 120 days of the purchase
• Citi Price Rewind: The consumer Costco Anywhere Visa® Card is part of Citi’s Price Rewind program, which will refund you the difference (up to $500 per eligible product) if you find that something you bought drops in price within 60 days of your purchase
• Travel-related benefits: As a cardholder, you’ll be covered with travel accident insurance, trip cancellation and interruption protection, and travel or emergency assistance. If you rent a car using the card, you may also receive insurance that covers damage or theft of the rental car

As always, review the fine print before applying for a new credit card. For example, the bonus cash back rate at gas stations doesn’t include gas purchased at supermarkets, convenience stores, non-Costco warehouse clubs, and superstores. However, you’ll generally receive the 4% cash back rate at gas stations that are connected to convenience stores or supermarkets as long as you pay for gas at the pump.

The fine print on the bonus cash back at restaurants says it doesn’t include purchases at bakeries and some restaurants or cafes that are inside department stores, grocery stores, or warehouse clubs. In the end, the amount you earn depends on if the merchant classifies itself as a restaurant or as part of the store that it’s inside.

Skip it: If you want flexibility when redeeming rewards, you don’t plan on keeping a Costco membership, or you’ll get more value from a different rewards card

The Costco Anywhere Visa® Card by Citi is a great option for Costco members who frequent the store, but it may not be a good fit for everyone.

One reason is that you can only access your rewards once every year, and you must use them at a Costco warehouse. You may be able to match the 2% cash back you get while shopping at Costco and Costco.com with other, more flexible, credit cards.

For example, the BankAmericard Cash Rewards™ cards offer 2% cash back at wholesale clubs, including Costco, along with 2% cash back at grocery stores and 3% cash back at gas stations. The bonus rates are only for the first $2,500 in combined purchases at grocery stores, wholesale clubs, and gas stations each quarter, but if you spend less than that it’s a good alternative.

The BankAmericard Cash Rewards™ card also doesn’t have an annual fee, and it has a $150 sign-up bonus if you make at least $500 in purchases within 90 days. But, there are also many cards that exclude purchases from wholesale clubs like Costco from their bonus rewards. So, as always, read the terms and conditions before you make your commitment.

Consider these of the Costco Anywhere Visa® Card by Citi:

• Requires good to excellent credit: Costco doesn’t list an exact credit score requirement for the card, but you may need a score around 720 or higher to qualify
• No welcome offer: Some rewards credit cards have welcome offers worth hundreds of dollars, sometimes over $1,000. However, the Costco Anywhere Visa® Card by Citi doesn’t have one at all
• You must redeem the certificate in person, and it expires at the end of the year: The rewards you earn with your Costco Anywhere Visa® Card will be sent to you as a rewards certificate with your February credit card statement. The certificate expires at the end of the year, and you have to redeem it in person at a Costco warehouse store (not Costco.com). If you don’t use the entire certificate’s value during a single transaction, you may forfeit the remainder. However, the store may give you the difference in cash or by check
• 3% foreign transaction fee: Although the Costco Anywhere Visa® Card by Citi has good bonus rate for travel purchases, there’s a 3% foreign transaction fee that applies to non-U.S. dollar purchases. (One exception being all purchases at Costco.) If you plan to travel overseas, look for a card without a foreign transaction fee
• Other cards also have bonus cash back at warehouse clubs: Costco accepts all Visa cards, not just the Costco Anywhere Visa® Card, and you could be better off with a different rewards card if you’re looking for more flexibility.

Summary

If you’re a Costco member or considering membership, the Costco Anywhere Visa® Card is definitely worth considering if you’re looking for a rewards credit card and have good to excellent credit. It’s bonus cash back rates are especially great considering the card doesn’t have an annual fee.

However, if you want some flexibility with how and when you redeem your cash back rewards, or you don’t plan to keep your Costco membership, then a different rewards card could be a better fit.

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