Should I Buy a Costco Anywhere Visa Card?

The credit card industry keeps a closely guarded secret of how many cardholders own a particular card, and a smart way to approximate a card’s popularity is to study search interest.

Business Insider did it in 2020 and found the standout winner, Citi’s Visa® Costco Anywhere Card. The card reportedly received 935,000 requests per month (more than five times that of the runner-up “Southwest credit card”).

So here’s the question that everyone and their mothers seem to want answered: Is a Costco Anywhere visa worth it?

When does the Costco Anywhere Visa card cost?

As the name suggests, the Costco Anywhere Visa card is for those who already prefer to shop at Costco (and pay for a membership) but want to save money in the long run. With the Costco Anywhere Visa Card, you’ll receive 2% cash back on Costco purchases that, depending on your shopping habits, may be worthy of these rewards alone.

Also, because the card rewards you with 4% cashback on qualifying gas purchases (up to $7,000 per year, then 1%), those who spend a lot on gas will enjoy significant rewards with this card. The best part is that you don’t have to fill up at Costco gas stations – any gas station will do, except warehouse clubs, grocery stores, supermarkets, or convenience stores. Cardholders also get 3% cashback on restaurants and qualifying trips, Double Cashback at Costco (as noted), and 1% back on everything else.

Please note that the cashback is credited once a year and is issued in the form of a certificate every February.

When is a Costco Anywhere Visa not worth it?

Compared to other cash back credit cards, the Costco Anywhere Visa card offers far fewer options when it comes to redeeming rewards. Additionally, with the Costco Anywhere Visa, you must redeem your certificate at a physical Costco office for either cash or merchandise.

Visa Costco Anywhere is not a bad card, but it is quite restrictive when it comes to redeeming rewards:

• You receive cashback only once a year, in the form of a certificate, in February
• The certificate expires on December 31st of the same year.
• Need to redeem a certificate from Costco
• You will lose your rewards if you close your account before receiving your certificate.

While the card offers additional benefits for gas, travel, and meals, these categories are easier to optimize elsewhere. If you’re not a regular enough Costco shopper to justify an annual membership, or if you don’t want to be limited to spending your Costco rewards, the card is probably not worth it.

Should I get a Costco Anywhere Visa card?

In general, you should get a Costco Anywhere Visa card if you already have a Costco membership, shop there often to make the membership worth it, or spend a decent amount of money there. If you’re spending enough to make the membership pay off in the long run, then this card is for you. This will effectively be a card with no annual fees and will save you extra money on future Costco purchases.

But if you’re not too attached to shopping exclusively at Costco, there are other cards that offer cashback in similar categories. The Blue Cash Preferred® card from American Express, for example, can give you 6% cash back at US supermarkets (on purchases up to $6,000 a year, then 1% back), as well as 3% at gas stations in the US (among other categories). ). This card charges an annual fee of $95 (first year waiver) and you have more than one repayment option – cash back in the form of a credit statement, gift cards, and merchandise.

bottom line

Before applying for a Costco Anywhere Visa card, it’s helpful to weigh the pros and cons of the card to decide if it’s worth it for you.

Considering the card offers by category, it’s easy to find other cashback options that offer higher rewards for each type of spend, but finding one card that does it all in one package is a little more difficult.

Overall, the Costco Anywhere Visa can be beneficial for frequent Costco shoppers who are both patient and looking for ways to save money in the long run.

Ted Rossman is a senior industry analyst at CreditCards.com. He has spent the last decade in the personal finance industry, conducting consumer and industry research and providing commentary for the media and consumers. Its main focuses include credit cards, debt management and credit ratings. Ted regularly shares his advice through major media such as Good Morning America, Wall Street Journal, CNBC and Fox Business. He also writes a weekly “Wealth and Desires” column for CreditCards.com, which is mostly about cashback credit cards.

Erin Bendig Erin combines personal experience with research and is passionate about sharing credit card information and personal finance tips with others.