Costco membership and its credit card are two separate things you can buy, but they work together
You need a Costco membership to shop at Costco warehouses. The Costco Anywhere Visa Card by Citi is a credit card that earns cash back on Costco purchases — but you don't need it to be a member, and you don't need to be a member to explore for it. Many people have one without the other. The card does give you a small benefit if you also have a membership: higher cash back rates on gas and travel purchases made through Costco.
The membership costs money upfront — either $65 or $130 per year depending on which tier you choose. The credit card is free if you're approved. Both are optional. This guide explains how they fit together, what each one costs, and what you actually get from pairing them.
Key Takeaways
- Costco membership ($65 Gold Star or $130 Executive) and the Costco Anywhere Visa Card are separate purchases — you can have one, both, or neither.
- The credit card earns 2% cash back on Costco purchases and gas, but only 1% on gas if you don't have a membership.
- The card has no annual fee, but you must be approved by Citi and have a credit history to get one.
- Membership gives you warehouse access and discounted prices; the card gives you cash back on what you buy there or anywhere Visa is accepted.
- If you use Costco regularly and pay off the card each month, the combination can save you money; if you don't shop there often, the membership fee may not be worth it.
What the Costco membership actually covers
A Costco membership is a yearly pass that lets you enter the warehouse and buy from their inventory. There are two tiers: Gold Star ($65 per year) and Executive ($130 per year). Both give you the same warehouse access and pricing. The Executive membership adds a 2% annual reward on most Costco purchases, paid as a certificate you can use in-warehouse or online.
The membership is tied to one person but can include a household card for a spouse or domestic partner at no extra cost. You renew it every 12 months. Costco does not require you to own their credit card to be a member — you can pay with any Visa, Mastercard, American Express, or cash.
How the Costco Anywhere Visa Card earns cash back
The Costco Anywhere Visa Card is issued by Citi and earns cash back on purchases. The rates depend on where you shop and whether you have a Costco membership. If you have a membership, you earn 2% cash back on Costco purchases (in-warehouse and online), 2% on gas at Costco pumps, and 1% on all other purchases. If you don't have a membership, you earn 1% cash back on Costco purchases and 1% on gas at Costco pumps.
Cash back is paid as an annual reward certificate that arrives in the mail. You can use it to pay for anything at Costco — groceries, gas, membership renewal — or you can let it sit. The certificate does not expire as long as your membership is active, but it does expire if you let your membership lapse.
The card has no annual fee. You pay interest on any balance you don't pay off each month, just like any other credit card. The interest rate varies based on your credit score and history.
The real cost of having both membership and card
If you get the Gold Star membership ($65 per year) and use the Costco Anywhere Visa Card regularly, you're paying $65 upfront. The card itself is free. To break even on the membership, you need to save at least $65 per year on Costco purchases compared to what you'd pay elsewhere, or earn at least $65 in cash back from the card.
The math depends on how much you shop. If you spend $3,250 per year at Costco with the card, you earn 2% cash back, which is $65 — enough to cover the membership fee. That's about $62 per week. If you spend less, the membership costs you money. If you spend more, it saves you money. The Executive membership ($130 per year) makes sense only if you spend enough to earn back $130 in cash back plus the 2% annual reward certificate, or if you value the other Executive perks like higher return limits.
When the card makes sense without a membership
You can own the Costco Anywhere Visa Card without being a member. You'll earn 1% cash back on Costco purchases and 1% on Costco gas, but you won't be able to enter the warehouse. This setup makes sense only if you shop Costco online and want the cash back, or if you use the card for non-Costco purchases and like the Visa benefits.
The card also works at any store that takes Visa, so you can use it for groceries, restaurants, or anything else. You earn 1% cash back on those purchases whether or not you have a membership. If you don't plan to shop at Costco in-warehouse, the card's main value is as a general 1% cash back card with no annual fee.
Comparing this to other ways to save at Costco
Some people get a Costco membership without the credit card and pay with cash or another card. This works fine if you don't want to carry another credit card or if you already have a card with better cash back rates. You still get the warehouse prices and discounts.
Other people use a different credit card at Costco if it earns higher cash back. For example, some cards earn 3% or 5% cash back on groceries or gas at certain stores. If you have one of those, it might earn you more than the Costco card's 2%, even with a membership. The tradeoff is that those cards usually charge an annual fee, so you have to do the math for your own spending.
What happens to your cash back if you cancel
If you have an active Costco membership and earn a cash back certificate from the card, the certificate stays valid as long as your membership is active. If you cancel your membership, any unused cash back certificate expires and you lose it. If you cancel the credit card but keep your membership, you keep any cash back you've already earned, but you stop earning new cash back.
This matters if you're thinking about canceling either one. If you have a certificate sitting in your account and you're considering letting your membership lapse, use the certificate first. If you're canceling the card, make sure you've used up any pending cash back or you'll lose it when the membership ends.
Frequently Asked Questions
Do I have to get the credit card to shop at Costco?
No. You can be a Costco member and pay with any major credit card, debit card, or cash. The Costco Anywhere Visa Card is optional and only valuable if you shop there regularly enough to earn back its value in cash back.
Can I use the Costco card at other stores?
Yes. The Costco Anywhere Visa Card works anywhere Visa is accepted. You earn 1% cash back on non-Costco purchases. It's a regular credit card that happens to offer better rates at Costco if you have a membership.
What credit score do I need to get approved for the card?
Citi does not publish a minimum credit score, but most people approved have a score of 670 or higher. You can explore online and learn about you're approved in seconds. A rejection doesn't hurt your credit score, but a hard inquiry does show up on your report.
Does the Executive membership pay for itself with the card?
Only if you spend enough. The Executive membership costs $130 per year and gives you a 2% annual reward certificate on most Costco purchases, plus the card's 2% cash back on Costco purchases. You need to spend roughly $6,500 per year at Costco to earn $130 in combined rewards. If you spend less, the Gold Star membership is cheaper.
What if I have the card but my membership expires?
You can still use the card anywhere Visa is accepted, but you can't enter the warehouse. Any unused cash back certificate expires when your membership lapses. You can renew your membership anytime and the card will work with it again.