What the REI Credit Card Does
The REI Co-op Visa Card is a rewards card issued by Visa and managed by REI Co-op, the outdoor retail and membership organization. It gives you cash back on purchases at REI and other retailers, with higher rewards rates at REI stores and on gas and groceries. You don't need to be an REI member to open the card, but membership status affects how much cash back you earn.
The card works like most rewards cards: you charge purchases, earn a percentage back as cash rewards, and can redeem those rewards as statement credits or REI gift cards. There is an annual fee, which REI waives for the first year if you're a new cardholder. After that, you pay the fee each year whether you use the card or not.
Key Takeaways
- REI Co-op members earn 5% cash back on REI purchases; non-members earn 1%, so membership status directly affects the card's value to you.
- You earn 3% cash back on gas and groceries, and 1% on everything else, regardless of membership status.
- The card charges an annual fee after the first year, so you need to use it enough to earn back more than that fee costs.
- REI membership costs money separately and has its own benefits; the credit card and membership are two different things.
- Cash back rewards do not expire as long as your account stays open and in good standing.
How Much Cash Back You Actually Earn
Your rewards rate depends on whether you hold an REI Co-op membership card. If you're a member, you earn 5% cash back on all REI purchases — online and in stores. If you're not a member, you earn only 1% on REI purchases. On gas, groceries, and transit (including taxis and rideshare), both members and non-members earn 3% cash back. Everything else earns 1%.
The annual fee is currently $95, though REI waives this for your first year. To break even on the fee, a non-member would need to earn at least $95 in cash back annually, which means spending roughly $9,500 outside of REI (at the 1% rate) or $3,167 on gas and groceries (at the 3% rate). A member would break even much faster because of the 5% rate on REI purchases — roughly $1,900 in annual REI spending covers the fee.
Cash back does not expire. You can let rewards accumulate and redeem them whenever you want, as long as your account remains open and in good standing. If you close the account, you forfeit any unredeemed rewards.
REI Membership vs. the Credit Card
Many people confuse the REI Co-op membership with the credit card because they share the REI name. They are separate things. The membership is an annual or lifetime membership to REI Co-op, the organization itself. It costs money upfront and gives you a dividend on purchases (usually 10% of may be able to access purchases, paid once a year) plus other perks like member-only sales and discounts on classes and rentals.
The credit card is a payment tool that works at any merchant that takes Visa. You can own the card without being a member, but you'll earn lower rewards on REI purchases. If you already plan to shop at REI regularly and want the highest rewards rate, membership plus the card together make sense. If you shop at REI occasionally, the card alone might not justify the annual fee.
When the Annual Fee Makes Sense
The $95 annual fee is worth paying only if you'll earn more than $95 in cash back during the year. For REI members who shop at REI regularly, this is usually straightforward to hit — $1,900 in annual REI purchases at 5% cash back covers the fee. For non-members or people who rarely shop at REI, the math is tighter.
If you spend heavily on gas and groceries, the 3% rate helps. Someone who spends $500 per month on groceries and gas ($6,000 per year) earns $180 in cash back at 3%, which covers the fee with room left over. But if you spend less than that, or if most of your spending is outside these categories, the card may cost you more than it returns.
The card also offers purchase protection, extended warranty coverage, and travel benefits like trip cancellation insurance. These perks have real value if you use them, but they should not be your main reason to carry the card — the annual fee is high enough that cash back rewards need to do most of the work.
How to Redeem Your Rewards
You can redeem cash back in two ways: as a statement credit that reduces your credit card bill, or as an REI gift card. There is no minimum redemption amount, so you can cash out $5 if you want. Statement credits post when ready, while gift cards arrive by mail or email depending on how you order them.
Some people prefer gift cards because they force you to spend the rewards at REI, which can feel like a bonus. Others prefer statement credits because they reduce what you owe on the card and give you flexibility to spend the money anywhere. Neither option is objectively better — it depends on whether you want to shop at REI anyway.
What Happens If You Carry a Balance
If you don't pay off your full statement balance each month, you'll pay interest on the remaining balance. The interest rate (APR) varies based on your credit score and history, but it's typically in the range of 16% to 24% for most cardholders. This interest charges daily and compounds, so carrying a balance quickly erases any rewards you've earned.
For example, if you earn $100 in cash back but carry a $1,000 balance at 20% APR, you'll pay roughly $200 in interest over a year — meaning the card cost you money overall. The card only makes financial sense if you pay off the full balance each month. If you tend to carry balances, this card (or any rewards card) will likely cost you more than it saves.
Comparing This Card to Other Options
The REI card's main competitor is the general-purpose cash back card, like the Citi Double Cash (2% back on everything) or the Capital One Quicksilver (1.5% back on everything). Those cards have no annual fee, which makes them simpler math — you earn rewards on every purchase with no fee to overcome.
The REI card wins if you shop at REI often and are a member (5% is higher than most competitors offer anywhere). It also wins on gas and groceries at 3% if you spend a lot in those categories. But if you don't shop at REI, or if you're not a member, a no-fee card often delivers better value because you don't have to earn enough to cover an annual fee.
Frequently Asked Questions
Do I need to be an REI member to open the card?
No. You can open the REI Visa Card without membership. However, non-members earn only 1% cash back on REI purchases instead of 5%, so the card's main advantage is much smaller. If you plan to shop at REI regularly, membership usually pays for itself through the dividend alone.
Can I use this card at stores other than REI?
Yes. The card is a Visa, so you can use it anywhere Visa is accepted. You earn 3% on gas and groceries, 1% on everything else, and 5% (or 1%) on REI purchases depending on membership status. The card is not limited to REI stores.
What happens to my rewards if I close the card?
Any unredeemed cash back is forfeited when you close the account. You should redeem your rewards before closing the card, or make sure the balance is zero and you're ready to lose any pending rewards. Once the account is closed, there's no way to recover them.
Is there a sign-up bonus?
REI occasionally offers sign-up bonuses for new cardholders, such as a statement credit or bonus cash back for the first few months. These offers change, so check REI's website or call their customer service line to see what's current. The first-year annual fee waiver is standard, but bonus offers vary by timing.
How does this card affect my credit score?
Opening any new credit card temporarily lowers your score because it creates a hard inquiry and adds a new account to your history. Over time, if you pay on time and keep your balance low, the card can help your score by improving your credit mix and keeping your utilization ratio healthy. Missing payments or carrying high balances will hurt your score.