What the Costco Credit Card is and who issues it
The Costco Credit Card is a co-branded card issued by Citi in partnership with Costco. It is designed for Costco members and offers cash back rewards on purchases both at Costco and elsewhere. The card is Visa, so you can use it anywhere Visa is accepted, not just at Costco locations.
Costco does not issue the card itself — Citi handles the account, billing, and customer service. When you open the card, you are opening a Citi account that is linked to your Costco membership. The two are separate but connected: you need an active Costco membership to hold the card, and if your membership lapses, your card benefits change.
Key Takeaways
- The Costco Credit Card earns 4% cash back at Costco gas stations and on Costco travel purchases, 3% at Costco warehouses, and 1% everywhere else.
- You must be a Costco member to open the card, and the card's rewards are tied to your membership status.
- There is no annual fee, but you do pay Citi's standard interest rate if you carry a balance.
- Cash back rewards are issued as an annual statement credit or check, not as points you can redeem on demand.
- The card is a Visa, so it works at any merchant that accepts Visa, though the highest rewards are at Costco.
Reward rates and where you earn the most
The cash back structure is tiered by merchant type. At Costco warehouses and Costco.com, you earn 3% cash back. At Costco gas stations, you earn 4% cash back. On Costco travel purchases — flights, hotels, and car rentals booked through Costco Travel — you also earn 4% cash back. On all other purchases, you earn 1% cash back.
The 4% rate at gas stations applies only to Costco gas pumps, not to other gas stations or fuel purchases elsewhere. Similarly, the 3% rate at Costco.com applies to purchases made through Costco's website, not to other online retailers. The 1% cash back on everything else means you earn rewards on groceries, restaurants, utilities, and any other purchase you make outside Costco.
Cash back is not redeemed as points. Instead, Citi calculates your total rewards once per year and issues the amount as a statement credit or a check mailed to your address. You cannot cash out rewards mid-year or transfer them to another account.
Annual fees and interest rates
There is no annual fee to hold the Costco Credit Card. This is different from many premium cash back cards, which charge $95 or more per year. You pay nothing just to have the card open.
If you carry a balance from month to month, you will be charged interest. Citi's standard purchase APR applies, which varies based on your credit score and current market rates. The card does not have a special promotional rate for new cardholders. If you pay your full statement balance by the due date each month, you will not pay any interest.
How to open the card and what you need
You open the Costco Credit Card through Citi's website or by visiting a Costco warehouse. To start the process online, go to Citi's credit cards page, search for the Costco card, and click the link to open an account. You will need your Social Security number, date of birth, current address, and income information. Citi will pull your credit report to make a decision.
You must have an active Costco membership at the time you open the card. If you do not have a membership, you can sign up for one at the warehouse or online before you open the card. Costco membership costs money — Gold Star membership is the most common option — so factor that into your decision.
The approval decision usually comes within minutes if you explore online. If you are approved, your card will be mailed to you within 7 to 10 business days. You can use the card as soon as it arrives.
What happens if your Costco membership expires
If you let your Costco membership lapse, your card remains open but your rewards rate changes. You will no longer earn 3% or 4% cash back at Costco locations. Instead, you will earn only 1% cash back on all purchases, including at Costco. The card will still work as a Visa everywhere, but the main benefit — higher rewards at Costco — disappears.
If you renew your membership later, your higher rewards rates come back automatically. You do not need to reopen the card or contact Citi. Your membership and card are linked in Costco's system, so the rewards adjust when your membership status changes.
How this card compares to other cash back options
The Costco card's main advantage is the 3% and 4% rates at Costco combined with no annual fee. If you shop at Costco regularly, those rates add up faster than a flat 2% cash back card would. The 1% rate on everything else is standard for cash back cards.
Other cards offer higher rewards on groceries, gas, or restaurants outside Costco. For example, some cards offer 3% or 4% on groceries at any store, not just Costco. If you do not have a Costco membership or do not shop there often, a different card might earn you more. The Costco card makes sense if Costco is already part of your shopping routine and you want to maximize rewards there.
The no-annual-fee structure also matters. Premium cash back cards often charge $95 to $550 per year, which means you need to earn enough rewards to offset that cost. The Costco card has no such hurdle — every dollar of rewards is pure gain.
How to track and use your cash back rewards
You can see your current rewards balance by logging into your Citi account online or through the Citi mobile app. Your balance updates as purchases post to your account, usually within a few days of the transaction. The app shows a running total of rewards earned year-to-date.
Once per year, usually in January or February, Citi calculates your total rewards and issues them. You will receive either a statement credit applied to your account or a check mailed to your address on file. You choose the method when you set up your account, and you can change it later through your online account settings.
If you receive a statement credit, it reduces your balance due on your next bill. If you receive a check, you deposit it like any other check. There is no way to redeem rewards for merchandise, travel, or anything other than cash value.
Frequently Asked Questions
Can I use the Costco Credit Card outside the United States?
Yes, the card is a Visa and works internationally wherever Visa is accepted. However, Citi charges a foreign transaction fee of 3% on purchases made outside the U.S. This fee applies to all purchases, not just Costco transactions. If you travel frequently, factor this fee into your decision.
What if I close my Costco membership but keep the card?
Your card will remain open and usable as a Visa, but you will earn only 1% cash back on all purchases. You lose access to the higher 3% and 4% rates at Costco. If you rejoin Costco later, the higher rates return automatically.
Do I earn rewards on Costco membership fees?
No, membership fees themselves do not earn cash back. However, once you are a member, all may be able to access purchases at Costco warehouses and Costco.com earn the standard 3% rate.
Can I transfer my cash back rewards to another card or account?
No, rewards are issued only as a statement credit or check once per year. You cannot redeem them for points, transfer them to another card, or cash them out on demand. The annual payout is the only way to access your rewards.
What credit score do I need to open this card?
Citi does not publish a minimum credit score requirement, but the Costco card typically goes to people with good to excellent credit — usually a score of 670 or higher. Your actual approval depends on your full credit profile, not just your score. If you are denied, you can contact Citi to ask why.