Costco Anywhere Visa Card by Citi
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If you spend a ton on gas, or at Costco, and you don’t mind waiting to get your once-a-year disbursement, the Costco Anywhere Visa Card by Citi offers one of the industry’s highest payouts at the pump and is the only card offering year-round rewards for shopping at Costco.
Most rewards cards exclude the big warehouse clubs, but the Citi Costco Anywhere Visa pays 2% back for every $1 spent at the shopping behemoth. You also can earn fat rewards on everyday spending in other places like 4% back on gas up to $7,000 a year (then 1%), 3% back on restaurants and eligible travel purchases and 1% on all other spending.
The card is free, but you have to be a Costco member to apply, which will cost you $60 annually to join. If you max out the gas spending cap of $7,000, you’ll earn $280 back just for fueling up. And you’ll still earn 3% dining out and on travel, plus 2% in Costco and 1% everywhere else.
There’s an OK 0% APR intro offer for seven months on purchases, which could be helpful if you’re planning to purchase a big-ticket item and want a few extra months to pay it off.
If you already have a Costco membership, it’s worth considering adding this card to your wallet for cash-back rewards you’ll earn at its warehouse stores. If you’re not a Costco member, but you know you’ll spend at least $7,000 a year on gas, it may be worth it to you to join just to get this card.
This otherwise excellent credit card loses points because the Costco Anywhere card comes with no sign-up bonus. That’s something consumers have come to expect from a quality rewards credit card.
Who should get this card
Typical suburban households who spend heavily on gas and groceries are most likely to benefit from the rewards structure of this card.
Fees and APR
• There’s an introductory 7-month 0% APR offer on purchases, after that a variable 16.24% will apply.
• There’s no fee to own this card, but Costco membership is required, which starts at $60 annually for a basic membership.
• If you miss a payment or pay late, a penalty APR of up to 29.99% may apply indefinitely, plus you may incur a late fee of up to $37.
• You’ll pay a 3% foreign transaction fee on all purchases made outside the U.S.
Extras, perks and using rewards
This card comes all Citibank card benefits which include travel and emergency assistance, trip cancellation and interruption protection, lost and delayed baggage protection, roadside assistance and worldwide travel accident assistance.
Citi cardholders also get price protections with Citi Price Rewind, extended warranty protection and damage and theft purchase protections.
You’ll need to be patient, though, as you’ll only get your rewards once a year in February when Costco mails a redeemable certificate. You’ll need to bring that certificate to Costco to redeem for merchandise or cash at checkout.
How this card compares
If you’re looking to earn maximum rewards back on your everyday shopping, you may want to consider the Amazon Prime Rewards Visa Signature Card. The card is free with a $99 Amazon Prime membership and the card pays 5% back on all Amazon.com purchases. Depending on how you spend, this card may result in greater net earnings for you.
When it comes to rewards value, the Citi Double Cash Card ranks among the very best cash-back credit cards that charge no annual fee.
So why, you might ask, does this card not receive a higher score from Bankrate? There are a couple reasons, but the main thing dragging this card down is this: Because Citi Double Cash offers no sign-up bonus, it struggles to compete with many cards in this category.
Longer-term, the Citi Double Cash Card may earn you more rewards. The card earns an unlimited 1% cash back when you make a purchase and another 1% back when you pay for those purchases. Big spenders may find this nets more cash-back overall as there’s no ceiling on what you can earn back.
The Chase Freedom card is fee-free and offers rotating bonus categories that pay 5% back, with a cap of $1,500 in each category and an unlimited 1% back on everything else. You also have to sign-up each quarter to get the bonus. An advantage of this card over Discover’s rotating bonus category cash-back cards it’s a Visa, which is more widely accepted than the Discover card.
Depending on your spending habits, the no-annual-fee Blue Cash Everyday Card from American Express may ultimately give you better cash-back earnings with a rate of 3% at U.S. supermarkets up to $6,000 in spending annually (then 1%), 2% at U.S. gas stations and select U.S. department stores and 1% on all other spending.
Opinions expressed here are author's alone, not those of any bank, credit card issuer, airlines, or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.