While the card_name is geared to shoppers who spend a lot within the brand's warehouse stores, it's also considered one of the best credit cards for gas. This is mainly due to its incredible rewards structure that offers 4% back on up to $7,000 spent at gas stations and on EV charging stations each year (then 1% back), as well as 2% back at Costco stores and Costco.com.
Cardholders also earn 3% back at restaurants and on eligible travel purchases, followed by a flat 1% back on everything else. The card doesn't charge an annual fee or foreign transaction fees either, so you can keep for the long run at no cost if you never carry a balance.
That said, there are some "fine print" items you should know about with the card_name, including the fact you can only access the rewards you earn once per year. Before you sign up for the card_name, read on to learn everything there is to know.
Pros & Cons
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Who should get it?
Due to its dynamic rewards structure and the fact you have to be a Costco member to use the card's rewards, the card_name is geared to people who shop at the warehouse stores and want to get the most from their purchases. That said, it's important to note that the card's 4% back category on gas and EV charging stations applies to all eligible gas stations worldwide and not just gas at Costco.
There are a few notable exceptions. For example, the fine print for the card says members will only earn 1% back on "gas purchased at superstores, supermarkets, convenience stores and warehouse clubs other than Costco or for fuel used for non-automobile purposes."
For the most part, these details make the card_name ideal for the following types of consumers:
- Heavy Costco shoppers who want to maximize rewards on their purchases.
- Consumers who are okay with redeeming their rewards for Costco merchandise.
- People who commute to work or pay to charge their electric cars on the go.
- Anyone who wants a rewards credit card with no annual fee and no foreign transaction fees.
Costco membership
As we mentioned already, you must be a Costco member to apply for the card_name or even use the rewards you earn. However, most Costco shoppers would agree the price of entry is well worth it once you figure out which Costco food and household items you can use on a regular basis.
Not only does Costco offer a range of bulk grocery items, but you can head to the warehouse store to stock up on clothing, furniture, electronics, dishes and cookware, and all other kinds of gadgets.
The cost of membership is also reasonable. As of 2023, Costco offers the following membership tiers to choose from:
Annual fee | ||||
Use it to shop online and in stores | ||||
Earns rewards | Earns 2% back in rewards | Earns 2% back in rewards | ||
Qualifies for Costco service discounts | ||||
Membership cards | Comes with two membership cards | Comes with two membership cards | Comes with two membership cards (add additional people for $60 each) | Comes with two membership cards (add additional people for $60 each) |
Important: Business owners who want to earn cash back on their business purchases at Costco should look into the card_name instead. This card has the same rewards structure as the card for consumers, yet it is geared to small business owners and entrepreneurs.
Rewards structure
The card_name offers four different tiers of rewards consumers can maximize. After signing up, cardholders earn cash back at the following rates:
- 4% back on up to $7,000 per year in gas purchases worldwide and EV charging stations (then 1% back)
- 3% back on restaurant purchases and eligible travel
- 2% back on Costco and Costco.com purchases
- 1% back on everything else
With this rewards structure in mind, it's easy to see how you could rack up a ton of cash back on gas purchases, groceries at Costco stores, dining, travel and more. However, you should know about the very unique way the card_name doles out rewards before you sign up for this card.
Instead of letting you rack up cash back you can use throughout the year whenever you're ready, this card only gives you your cash back in the form of a rewards check once per year when your February statement closes. This means you can't save up your cash back to use at your leisure, and that you'll have to wait 12 months to be able to access your rewards haul each year.
Not only that, but rewards are only redeemable in Costco stores for Costco merchandise. You may be able to use your Costco rewards check to get cash back at a Costco register too, but the fine print on the card_name says individual Costco stores can allow this (or not allow it) based on their own discretion.
Additional hidden perks
The card_name doesn't have a lot of other benefits beyond the rewards it offers. In fact, the main listed card perk is the fact you can use your Costco credit card as your ID card to shop in stores.
The other major cardholder perk you get with the card_name is no foreign transaction fees. This benefit can be helpful if you travel internationally often and you don't want to pay extra fees to use your credit card when you do.
What could be improved?
While the card_name has an excellent rewards rate by any measure, there are a few notable downsides to be aware of. Improvements that could dramatically improve the value of this card include the following:
- The card doesn't have a sign-up bonus. Other cash back credit cards offer generous rewards plus a cash bonus of $200 or more, yet the card_name doesn't have a welcome offer of any kind.
- The card_name lacks an introductory APR offer. This card comes with a high interest rate that applies when you carry a balance, and the same APR applies to balance transfers.
- The earning rate for Costco purchases and other spending could be higher. Earning 2% back at Costco is just okay since other cards offer 2% cash back on everything you buy, and the 1% rewards rate on other purchases is seriously lacking.
How does the it compare?
With the downsides of this card at the top of your mind, you may be wondering how other cash back credit cards compare. Consider the following cards from other issuers and how they stack up to the card_name.
Annual fee | ||||
Welcome offer | Earn additional 1.5% on all purchases up to $20,000 spent within first year | $200 after spending $1,500 on purchases within six months of account opening | ||
Rewards rate |
| 2% cash back — 1% when a purchase is made and another 1% when it's paid off |
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Intro APR offer | balance_transfer_intro_apr,balance_transfer_intro_duration | balance_transfer_intro_apr,balance_transfer_intro_duration on balance transfers, followed by an APR of reg_apr,reg_apr_type | balance_transfer_intro_apr,balance_transfer_intro_duration, followed by reg_apr,reg_apr_type | balance_transfer_intro_apr,balance_transfer_intro_duration on balance transfers, followed by an APR of reg_apr,reg_apr_type |
card_name vs. the card_name
Instead of offering several levels of rewards for different types of spending, the card_name offers 2% back on everything you buy — 1% when a purchase is made and another 1% when it's paid off. The card also comes with no annual fee, and consumers can redeem their rewards for a statement credit to their account, a check in the mail or direct deposit, among other options.
The card_name also comes with a balance_transfer_intro_apr,balance_transfer_intro_durationintroductory balance transfer, followed by a reg_apr,reg_apr_type APR. This makes it a good option for people who need to consolidate high-interest debt from other cards. Just keep in mind that the intro APR offer does not apply to purchases. Also, the card_name charges foreign_transaction_fee in foreign transaction fees when you use it for purchases abroad.
card_name vs. card_name
The card_name also comes with no annual fee, and it offers its own unique rewards tiers consumers can maximize. New cardholders can start off with Earn an extra 1.5% on everything you buy (on up to $20,000 spent in the first year) - worth up to $300 cash back. That's 6.5% back on travel booked through Chase Ultimate Rewards, 4.5% back on dining, including takeout and eligible delivery services, 3% on all other purchases.
While the card_name does have foreign transaction fees, it comes with a intro_apr_rate,intro_apr_duration and a balance_transfer_intro_apr,balance_transfer_intro_duration (followed by a reg_apr,reg_apr_type APR). Better yet, consumers have the option to redeem their rewards for cash back, gift cards, statement credits, travel, merchandise and more.
card_name vs. card_name
Finally, it's also worth looking into the card_name if you want to maximize cash back and have more flexibility. This card comes with no annual fee, and cardholders earn 5% back on up to $500 spent in their top spending category each quarter, then 1% back. Top spending categories that earn bonus cash with the card are easy ones to use since they include restaurants, gas stations, grocery stores, select travel, select transit, select streaming services, drugstores, home improvement stores, fitness clubs and live entertainment.
A welcome offer worth $200 in bonus cash can also be earned when cardholders spend at least $1,500 on purchases within six months of account opening. All other purchases earn 1% back, and cardholders can redeem their rewards for statement credits, gift cards, merchandise, travel, and more. The card also comes with intro_apr_rate,intro_apr_duration APR on purchases and a balance_transfer_intro_apr,balance_transfer_intro_duration on balance transfers, followed by an APR of reg_apr,reg_apr_type.
Worth considering if you’re a Costco shopper
At the end of the day, the card_name is worth considering if you're a Costco shopper or you've been planning to buy a membership. After all, this card will reward you handsomely each time you fill up on fuel, and you'll also earn 3% back on restaurant spending and travel and 2% back on all purchases you make with Costco.
You may even find that getting your rewards check once per year is not a big deal, and that you even look forward to it. After all, you can use your Costco rewards to stock up on anything the warehouse stores offer, including bulk groceries and household supplies, liquor and beer, and all kinds of other items you might want to splurge for.
At the very least, you could pick up the card_name to use for Costco shopping and gas then pair it with another card that offers more than 1% cash back on regular spending. There's no "right" or "wrong" way to earn credit card rewards, but smart planning can help you rack up more cash back for each purchase you make.
Frequently Asked Questions (FAQ)
Is Costco changing credit cards again?
Costco credit cards used to be issued by American Express, but the two companies ended their partnership in 2016. As of today, Costco credit cards for personal and business use are issued by Citi instead.
What is a good credit score to get a Costco credit card?
The Costco credit card requires good or excellent credit, so having a credit score of 670 or higher gives you the best chance at approval.
How do I get my Costco 4% back?
The Costco Anywhere Visa® Card by Citi lets you earn 4% back on the first $7,000 you spend on gas worldwide and EV charging each year, then 1% back.
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