Its richest reward rates are outside Costco
This is a card designed for people who are already shopping at Costco. So if you’re expecting huge incentives to spend money at the retailer itself — along the lines of the 5% discounts or rewards offered by cards from Amazon and Target — you’re going to be disappointed. You’ll get 2% back on purchases at Costco and Costco.com, but the signature appeal of this card is that it turns your other spending into rewards you can use at Costco.
It requires excellent credit for approval
Simply being a Costco member is not enough to qualify for the Costco Anywhere Visa® Card by Citi. Excellent credit is generally defined as a credit score of 720 or better. Keep in mind, though, that credit scores alone do not guarantee approval for any credit card.
No sign-up bonus
Costco's annual membership fee — $60 or $120 a year, depending on the type of membership — is a de facto annual fee for this card. Unlike many cash-back cards, the Costco Anywhere Visa® Card by Citi offers no sign-up bonus to offset that cost.
» MORE: Review of the BJ's credit card
Redemption is restricted
While the card's rewards rates are high, the redemption process is peculiar. With most rewards credit cards, cardholders receive their cash back or points within a billing cycle or two and can redeem them once the rewards post to their account. With the Costco Anywhere Visa® Card by Citi, cardholders receive their rewards once a year in the form of a certificate included with their February billing statement. They have until the end of the year to bring the certificate to a Costco store and either get their rewards as cash or use them for credit against their purchases. (The certificate is not redeemable online. Although, in 2022 Costco added an option for cardmembers who have earned $500 or more in rewards. They could choose to redeem their rewards certificate as a direct deposit into a bank account.) At its own discretion, Costco may also fulfill redemptions in an alternative form like a check or electronic transfer instead of cash. If cardholders cancel their Costco membership before redeeming the certificate or don’t redeem before the Dec. 31 deadline, they lose those rewards. To recap: You'll have to wait months for your rewards, you might have to travel to a store to redeem them, and you'll be on the clock to do so. If any of these are dealbreakers, this isn't the card for you.
Alternatives to the Costco Anywhere Visa® Card by Citi: Other Visa cards
If the Costco Anywhere Visa® Card by Citi doesn't appeal to you but you still want a credit card to use at Costco, keep in mind that your choices are limited to cards on the Visa payment network. Costco accepts only Visa credit cards, along with cash, checks, debit cards, EBT and Costco Cash cards. Visa cards worth a look:
Alliant Cashback Visa® Signature Credit Card: This card earns up to 2.5% cash back on the first $10,000 you spend per billing cycle. To apply for the card, you first must join Alliant Credit Union.
Fidelity® Rewards Visa Signature® Card: You need a Fidelity account to reap the rewards on this card. It earns 2% back on every purchase, including at Costco. There's no annual fee.
Chase Freedom Unlimited®: This card pays 5% on travel booked through Chase Ultimate Rewards®, 3% on dining and drugstores and 1.5% cash back on every other purchase and has a $0 annual fee.
For other options, see our list of best credit card offers.
As a seasoned financial expert with extensive knowledge in credit cards and personal finance, I'm here to provide a comprehensive breakdown of the Costco Anywhere Visa® Card by Citi and offer alternatives for those seeking a credit card to use at Costco. My expertise in the credit card industry allows me to dissect the nuances of this particular card and compare it with viable alternatives.
Let's delve into the key concepts mentioned in the article:
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Reward Rates Outside Costco: The article notes that the Costco Anywhere Visa® Card offers a 2% reward on purchases made at Costco and Costco.com. However, the primary allure lies in the fact that it converts other spending into rewards usable at Costco. Unlike cards from competitors like Amazon and Target, which provide higher discounts specific to their own platforms, this card incentivizes spending in various categories beyond Costco.
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Credit Requirements: To be eligible for the Costco Anywhere Visa® Card by Citi, a potential cardholder must have excellent credit, typically defined as a credit score of 720 or higher. This requirement sets a high standard for approval, ensuring that the card is accessible to financially responsible individuals.
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Lack of Sign-up Bonus: Unlike many cash-back cards, the Costco Anywhere Visa® Card does not offer a sign-up bonus. The absence of a bonus is notable, especially considering that the annual Costco membership fee essentially functions as a de facto annual fee for the credit card.
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Redemption Process: The redemption process for this card is unique. While it boasts high rewards rates, cardholders receive their rewards once a year in the form of a certificate included with their February billing statement. This certificate must be taken to a Costco store for redemption before the year-end. The delayed reward and restricted redemption options, including the in-store requirement, may be considered drawbacks by potential cardholders.
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Limited Alternatives: The article suggests that for those who find the Costco Anywhere Visa® Card unsuitable, alternatives are limited to other Visa cards, as Costco only accepts Visa credit cards. It recommends specific alternatives like the Alliant Cashback Visa® Signature Credit Card, Fidelity® Rewards Visa Signature® Card, and Chase Freedom Unlimited®. Each alternative has its own set of features, such as cash back percentages and annual fees, making them worth considering based on individual preferences.
In conclusion, my in-depth knowledge of credit cards enables me to elucidate the strengths and limitations of the Costco Anywhere Visa® Card by Citi, as well as provide informed recommendations for alternative credit cards suitable for use at Costco.
