Costco Anywhere Visa review: Members' guide to bulked-up savings

If you're a Costco member, you are likely familiar with the variety of savings and services they offer. One such offering is the Costco Anywhere Visa® Card by Citi, a credit card that's been designed to amplify the benefits of your Costco membership. Let's delve into the details and see whether it's the right card for your wallet.

Is the Costco Anywhere Visa Card Worth It?

For Costco loyalists, there's no question—the Costco Anywhere Visa is a lucrative option with no annual fee for Costco members. It offers competitive cashback rates, particularly on gas purchases. However, the catch is that the cashback rewards are issued just once a year, which could be a deal-breaker for those who prefer more frequent access to their savings.

Another strong selling point is the lack of foreign transaction fees, making it an excellent choice for international travel. Despite these perks, it's worth noting that the card benefits are closely tied to Costco membership. If you cancel your membership, you'll lose your accumulated rewards—a factor to consider seriously.

Lastly, while the card doesn't feature a sign-up bonus, the long-term rewards for consistent Costco shoppers could outweigh this initial shortfall, making the Costco Anywhere Visa a potentially valuable addition to your financial toolkit.

What Are the Benefits of the Costco Anywhere Visa Card?

The benefits of the Costco Anywhere Visa Card by Citi are tailored to reward everyday spending. Here's a quick rundown:

• 4% cash back on eligible gas for the first $7,000 per year, then 1% thereafter.
• 3% cash back on restaurants and eligible travel purchases worldwide.
• 2% cash back on all other purchases from Costco and Costco.com.
• 1% cash back on all other purchases where Visa is accepted.

Additionally, the card offers damage and theft purchase protection, extended warranty coverage, and travel accident insurance—amenities that provide not just savings, but peace of mind.

It's important to remember that these rewards are most beneficial for those who already spend regularly at Costco and on the card's other high-reward categories.

How to Earn and Redeem Cash Back with the Costco Anywhere Visa Card?

Earning cash back with the Costco Anywhere Visa is straightforward: use it for your everyday purchases, particularly in its higher cash back categories. But when it comes to redemption, patience is key. Rewards can be redeemed once a year at any U.S. Costco warehouse, including Puerto Rico, in the form of a reward certificate used for purchases or cash back. The annual distribution may be a downside if you prefer more frequent access to your rewards.

What Credit Score Is Required for the Costco Anywhere Visa Card?

Good to excellent credit is typically needed to qualify for the Costco Anywhere Visa Card. This translates to a credit score of 700 or above. If your credit score falls below this range, focusing on building your credit before applying may be a wise move.

How Does the Costco Anywhere Visa Card Compare to Other Cards?

When stacked against other credit cards, the Costco Anywhere Visa stands out for its robust cash back on gas and Costco purchases. While it doesn't offer the flexibility of redeeming points throughout the year like some other cards, the overall return could be higher for frequent Costco shoppers. It's also a strong contender for international travelers with its no foreign transaction fees policy.

Is the Costco Anywhere Visa Card Right for You?

To determine if the Costco Anywhere Visa Card is the right choice, consider your shopping and spending habits. If you're a regular at Costco and you spend a significant amount on gas, restaurants, and travel, the rewards can be quite advantageous. Also, take into account your credit score and your preference regarding reward redemption frequency.

What Are the Key Features of the Costco Anywhere Visa Card?

The key features of the Costco Anywhere Visa Card include:

• A tiered cash back rewards program.
• No annual credit card fee with your paid Costco membership.
• No foreign transaction fees.
• Exclusive benefits for Costco members.
• A variety of travel and purchase protections.

Frequently Asked Questions about Costco's Premium Credit Offering

Is Costco Visa a Good Rewards Card?

Yes, the Costco Visa is considered a good rewards card for those who frequently shop at Costco and fill up their gas at Costco gas stations. Its tiered cash back system rewards these specific spending habits generously.

Is Citi Premier Better than Costco Anywhere?

This depends on your spending patterns. Citi Premier might offer better flexibility in point redemption, but the Costco Anywhere Visa could yield more rewards for Costco loyalists. Comparison is key to making the right choice.

Is It Hard to Get a Costco Anywhere Visa Card?

While not exactly hard, getting a Costco Anywhere Visa Card requires a good to excellent credit score, which could be a barrier for some applicants.

Do You Get a Free Costco Membership with the Costco Credit Card?

No, you do not get a free Costco membership with the card. You must maintain your paid Costco membership to qualify for the card and its benefits.

Here's a glimpse at the Costco Anywhere Visa Card in action:

In conclusion, the Costco Anywhere Visa® Card by Citi offers a compelling value proposition for existing Costco members who can maximize the reward categories. With a strategic approach to spending and redemption, this card can certainly bulk up your savings. However, it's essential to weigh the annual reward certificate issuance and the lack of a sign-up bonus against your individual financial habits and preferences. For dedicated Costco shoppers, the benefits may well outweigh the drawbacks, leading to significant savings over time.