What the Citi Visa Costco card is and who issues it
The Citi Visa Costco card is a credit card issued by Citibank that you can use only at Costco warehouses and on Costco.com. You must be a Costco member to get one. Costco and Citibank partnered to replace the previous American Express Costco card in 2016, so if you held that card, you would have received a Visa version in the mail.
The card earns cash back on purchases — meaning Costco sends you a percentage of what you spend back to your account once a year. The cash back rate and annual fee depend on which version of the card you choose: the standard Gold Star card or the Executive card, which costs more but earns a higher rate.
You cannot use this card outside Costco. If you try to swipe it at a grocery store, gas station, or restaurant, it will be declined. This is different from most credit cards, which work anywhere Visa is accepted.
Key Takeaways
- The Citi Visa Costco card only works at Costco warehouses and Costco.com, so you need a separate card for everyday purchases elsewhere.
- The standard Gold Star version has no annual fee and earns 1% cash back on all Costco purchases, while the Executive version costs $120 per year and earns 2% cash back.
- Cash back is paid once per year as a Costco Cash certificate that you can spend only at Costco, not as money in your bank account.
- You must be an active Costco member to hold the card, and your membership and card are linked — if one ends, the other does too.
- The card reports to the three major credit bureaus, so on-time payments help your credit score, but late payments will hurt it.
The two versions: Gold Star and Executive, and what each costs
The Gold Star version has no annual fee. You earn 1% cash back on all Costco purchases, including gas at the Costco pump. That means if you spend $1,000 at Costco in a year, you receive $10 back as a Costco Cash certificate.
The Executive version costs $120 per year and earns 2% cash back on all Costco purchases. At $1,000 in annual spending, you would receive $20 back — a $10 gain over the Gold Star card, but you paid $120 for the privilege, so you would need to spend $6,000 at Costco that year just to break even on the fee.
Both versions earn the same 1% cash back on purchases outside Costco if you use the card elsewhere — but remember, the card will not work outside Costco, so this only applies if you somehow obtain a Visa version that works everywhere, which Costco does not offer. The card you receive works at Costco only.
How cash back works and when you receive it
Cash back is not deposited into your bank account. Instead, Costco mails you a Costco Cash certificate once per year, usually in January. The certificate shows the total cash back you earned during the previous calendar year. You can spend it like a gift card at any Costco warehouse or on Costco.com, but you cannot convert it to cash or use it anywhere else.
The certificate typically expires one year after it is issued, so if you receive it in January, you must spend it by the following January or it becomes worthless. Costco does not send reminders, so mark your calendar or check your Costco account online to see when your certificate was issued.
If you close the card or let your Costco membership lapse before the certificate arrives, you may lose the cash back you earned. Check with Costco before canceling to confirm whether you can still claim a certificate for the year you are leaving.
Annual fees, interest rates, and other costs
The Gold Star card has no annual fee. The Executive card charges $120 per year, billed to your card automatically on your membership renewal date.
If you carry a balance and do not pay it off in full each month, Citibank charges interest. The rate varies based on your credit score and other factors — Citi does not publish a single rate for this card. When you explore, Citi will show you the range you may receive. Rates typically fall between 16% and 24% annually, but your actual rate depends on your creditworthiness.
If you miss a payment, Citi charges a late fee. The first late payment usually costs $25 to $35; subsequent late payments in the same billing cycle may cost up to $39. A single late payment also triggers a higher interest rate on your balance, sometimes called a "penalty rate," which can last six months or longer.
How the card affects your credit score
The Citi Visa Costco card reports to Equifax, Experian, and TransUnion — the three major credit bureaus. This means your payment history and balance show up on your credit report and influence your credit score.
Paying on time every month helps your score because payment history is the largest factor in how credit scores are calculated. Carrying a high balance relative to your credit limit hurts your score, even if you pay on time. Maxing out the card or using more than 30% of your limit signals risk to lenders and can lower your score by 10 to 50 points.
If you miss a payment by 30 days or more, Citi reports it to the credit bureaus, and your score can drop 100 points or more. The damage lasts seven years from the date of the missed payment, though the impact fades over time as you build newer, positive history.
What happens if you close your Costco membership
Your card and membership are linked. If you let your Costco membership expire or if Costco terminates it, your card will stop working when ready. You cannot use it at the warehouse or online, even if you still owe a balance on it.
You are still responsible for paying off any balance you owe. Citibank will continue to send you statements and charge interest on the unpaid amount. If you do not pay, the debt can be sent to a collection agency and reported to the credit bureaus.
If you rejoin Costco later, you can request a new card, but Citibank will run a new credit check. Your previous card account will remain closed on your credit report.
how the process works and what you need
You can explore for the card in person at any Costco warehouse or online through Costco.com. You must have an active Costco membership — either Gold Star or Executive — to explore. If you do not have a membership yet, you can sign up for one at the same time.
The process takes about 10 minutes. Citibank will ask for your Social Security number, date of birth, income, and employment status. They will pull your credit report to check your credit score and history. Most decisions are made when ready; if your process is approved, you can receive a temporary card number to use online right away and a physical card in the mail within 7 to 10 business days.
If your process is denied, Citibank will mail you a notice explaining why. Common reasons include a low credit score, recent late payments, or too much existing debt. You can explore again after addressing the issue, but multiple applications in a short time can lower your score further.
Frequently Asked Questions
Can I use the Citi Visa Costco card at other stores?
No. The card only works at Costco warehouses and Costco.com. It will be declined everywhere else. If you need a card for everyday purchases, you need a separate credit card from another issuer.
What if I do not spend enough at Costco to earn back the $120 Executive card fee?
Stick with the Gold Star card, which has no annual fee. You earn 1% cash back on everything you buy at Costco with no cost. Switch to Executive only if you spend at least $6,000 per year at Costco, which would earn you $120 in cash back and break even on the fee.
Can I use the card if my Costco membership is expired?
No. The card stops working the moment your membership expires. You must renew your membership to use the card again. If you do not renew, you still owe any balance on the card, and interest will continue to accrue.
Does the Costco Cash certificate expire?
Yes. Costco mails the certificate once per year, usually in January, and it expires one year from the issue date. If you do not spend it by then, you lose it. Check your Costco account online or your email to see when your certificate was issued so you do not miss the important date.
What happens to my cash back if I close the card?
If you close the card before your annual Costco Cash certificate is issued, you may lose the cash back you earned that year. Contact Costco before closing to confirm whether you can still receive a certificate for the current year.