The Costco credit card makes sense if you shop at Costco regularly and want cash back on your purchases, but it only works if you have a Costco membership and can meet the annual fee.
Costco offers two credit cards through Citi: the Costco Anywhere Visa Card for Costco members, and the Costco Anywhere Visa Card for non-members. The member card costs $59 per year and gives you cash back on Costco purchases and gas. The non-member card has no annual fee but offers lower cash back rates and can only be used at Costco and Costco.com. Most people who already have a Costco membership find the member card worth it only if they spend enough to earn back the annual fee in cash rewards.
Whether the card is right for you depends on three things: how much you spend at Costco each year, whether you buy gas there, and whether you want cash back on purchases outside Costco. This guide walks you through what each card offers, what it costs, and how to decide if one fits your spending.
Key Takeaways
- The Costco Anywhere Visa Card for members costs $59 per year and earns 2% cash back on Costco purchases and gas, 1% on other purchases.
- You need an active Costco membership to get the member card; the non-member card has no annual fee but lower rewards and limited use.
- You break even on the annual fee if you earn $59 in cash back per year, which takes roughly $3,000 in Costco spending at the 2% rate.
- The card does not offer a sign-up bonus, so there is no when ready reward for opening it.
- Cash back posts to your Costco membership account as an annual certificate, not directly to your bank account.
Cash Back Rates and Where You Earn Them
The Costco Anywhere Visa Card for members earns 2% cash back on Costco purchases and Costco gas, 1% on all other purchases, and 0% on purchases outside the United States. This means if you buy $100 worth of groceries at Costco, you earn $2 in cash back. If you buy $100 in gas at a Costco station, you earn $2. If you use the card at a restaurant or store outside Costco, you earn $1.
The non-member card earns 1% cash back on Costco purchases and Costco gas, and 0% everywhere else. It cannot be used outside Costco or Costco.com, so it is only useful if you shop at Costco but do not want to pay for a membership.
Cash back does not appear in your bank account. Instead, Costco sends you an annual cash back certificate that you can use like a gift card at any Costco location or on Costco.com. The certificate arrives once per year, usually in December, and is valid for one year from the issue date.
Annual Fee and When It Pays for Itself
The member card costs $59 per year. To break even, you need to earn $59 in cash back annually. At the 2% rate on Costco purchases and gas, that means you need to spend roughly $2,950 per year at Costco and Costco gas stations combined. Spread across twelve months, that is about $245 per month.
If you spend less than $2,950 per year at Costco, the annual fee costs you money. If you spend $3,500 per year, you earn $70 in cash back and come out $11 ahead. If you spend $5,000 per year, you earn $100 and come out $41 ahead. The more you spend, the more the card benefits you.
The non-member card has no annual fee, so there is no break-even calculation. However, you also earn less cash back (1% instead of 2%), and you cannot use it anywhere but Costco. Most people who shop at Costco regularly already have a membership, so the non-member card is rarely the better choice.
No Sign-Up Bonus
The Costco Anywhere Visa Card does not offer a sign-up bonus. Many other credit cards offer $100 to $500 in cash back or points if you spend a certain amount in the first three months. Costco does not. You earn rewards only on purchases you make after you open the card, at the standard cash back rates.
This is one reason the card is best for people who already shop at Costco regularly. If you are considering opening a Costco membership and getting the card at the same time, compare the membership fee ($60 for Gold Star, the basic tier) plus the card fee ($59) against the rewards you expect to earn. The card alone does not give you a reason to join Costco if you do not already plan to shop there.
How the Card Compares to Other Rewards Cards
The Costco card's 2% cash back on Costco purchases is competitive for a card with an annual fee. However, other cards offer higher cash back on specific categories without an annual fee. For example, some cards earn 3% to 5% cash back on groceries, though usually with a cap on how much you can earn per quarter. Others earn 2% to 3% on gas at any station, not just Costco.
The Costco card's advantage is simplicity: if you do most of your shopping at Costco, you earn 2% on nearly everything you buy there, with no category limits or quarterly caps. The disadvantage is that you pay an annual fee and cannot use the card anywhere but Costco (except for the 1% cash back on other purchases, which is lower than many no-fee cards offer).
If you shop at multiple stores and want to maximize rewards, a no-fee card that earns 1.5% to 2% on all purchases might serve you better. If you shop almost exclusively at Costco and buy gas there, the Costco card is usually worth the fee.
What You Need to Open the Card
To open the Costco Anywhere Visa Card for members, you need an active Costco membership. You can explore online at Costco.com, in person at a Costco warehouse, or by phone. The process takes a few minutes and asks for your name, address, Social Security number, income, and employment information. Citi will check your credit and give you a decision within a few minutes to a few days.
You do not need to be a U.S. citizen, but you do need a valid Social Security number or Individual Taxpayer Identification Number. If you are approved, your card arrives in the mail within 7 to 10 business days. You can use it at Costco and Costco.com when ready, even before the physical card arrives, if you set up digital wallet access.
If you do not have a Costco membership, you can explore for the non-member card, but it is rarely recommended. The non-member card earns less cash back and can only be used at Costco, so it does not offer much value unless you shop at Costco frequently but do not want to pay for a membership.
Frequently Asked Questions
Can I use the Costco card outside Costco?
The member card can be used anywhere Visa is accepted, but you only earn 1% cash back on non-Costco purchases. The non-member card cannot be used outside Costco or Costco.com at all. If you want a card for everyday spending outside Costco, the member card works, but you will earn less cash back than you would at Costco.
What happens to my cash back if I cancel the card?
Your annual cash back certificate is issued once per year and belongs to you. If you cancel the card before the certificate is issued, you lose the cash back you earned that year. If you cancel after the certificate arrives, you keep it and can use it at Costco. The certificate is valid for one year from the issue date.
Does the Costco card have a foreign transaction fee?
Yes. The Costco card charges a 1% foreign transaction fee on purchases made outside the United States. It also earns 0% cash back on those purchases, so using it internationally is not recommended. If you travel frequently, a no-fee card with no foreign transaction fee may be better.
Can I get the card if I have bad credit?
Citi does not publish a minimum credit score for the Costco card, but most people approved have a score of 670 or higher. If your score is lower, you may still be approved, but it depends on your overall credit history and income. There is no harm in explore; a single process has a small impact on your credit score.
Is there a difference between the Costco card and a regular Visa?
The Costco card is a Visa, so it works anywhere Visa is accepted. The main differences are the cash back rates, the annual fee, and the fact that your cash back is issued as a Costco certificate rather than deposited to your bank account. It also has no sign-up bonus and no special perks like travel insurance or purchase protection.