Is The Costco Credit Card Worth It? A Comprehensive Review

Last Updated on December 11, 2025 by Amrita Das

For the millions of Americans who treat a Saturday trip to the warehouse club as a ritual, the checkout line question is familiar: “Would you like to apply for the Costco credit card?” It’s a tempting offer. You’re already buying bulk paper towels and enough snacks to feed a soccer team, so why not get rewarded for it?

However, store credit cards have a mixed reputation. Some offer incredible value that deepens your loyalty to the brand, while others are cluttered with high interest rates and lackluster rewards that trap consumers in debt.

The Costco Anywhere Visa® Card by Citi sits somewhere in this landscape, boasting a reputation for high gas rewards and strong travel perks—but it also comes with specific restrictions that might not fit everyone’s wallet.

Before you fill out that application at the register or online, it is crucial to understand exactly what you are signing up for. In this guide(“Is the Costco Credit Card Worth It”), we will discover the benefits, drawbacks, and hidden details of the Costco credit card to help you decide if it deserves a slot in your wallet.

Table of Contents

How the Costco Anywhere Visa® Card Works

The Costco Anywhere Visa® Card by Citi is designed specifically for paid members of the warehouse giant. Unlike a standard cash-back card you might get from a bank, this card is inextricably linked to your Costco membership.

Membership Requirement

The most fundamental aspect of this card is that it doubles as your membership ID. Your photo and membership number are printed on the back, allowing you to flash one card to enter the warehouse and pay at the register.

However, this convenience comes with a catch: you must have an active Costco membership to hold the card.

If you decide to cancel your Costco membership, your credit card account will likely be closed as well, which can impact your credit score by lowering your total available credit and reducing the average age of your accounts.

While the card itself has a $0 annual fee, the required membership starts at $60 per year for Gold Star and Business levels, and goes up to $130 for Executive levels.

The Reward Structure

The primary draw of the card is its tiered cash-back system. It incentivizes spending not just inside the warehouse, but on everyday expenses like commuting and dining out.

4% on Gas and EV Charging: You earn 4% cash back on eligible gas and electric vehicle charging for the first $7,000 per year, then 1% thereafter. This applies to Costco gas stations and most other gas stations worldwide, making it one of the strongest gas cards on the market.
3% on Dining and Travel: You earn unlimited 3% cash back on restaurants and eligible travel purchases. This includes Costco Travel bookings, airfare, hotels, car rentals, and cruise lines.
2% on Costco Purchases: You earn unlimited 2% cash back on all purchases from Costco and Costco.com.
1% on Everything Else: All other purchases earn unlimited 1% cash back.

Is the Costco Credit Card Worth It? The Major Benefits of the Costco Card

If you are already a loyal shopper, the perks extend far beyond the checkout aisle. Here is why many members find the card indispensable.

Unbeatable Gas Rewards

For commuters or families who drive frequently, the 4% return on fuel is the card’s standout feature. Most standard rewards cards cap gas rewards at 2% or 3%, or rotate the category quarterly.

The Costco card’s cap of $7,000 per year for the 4% rate is generous—amounting to roughly $134 per week in fuel spending before dropping to 1%. If you max out this category, you earn $280 in cash back on gas alone.

No Foreign Transaction Fees

Travelers can breathe easy knowing this card charges 0% in foreign transaction fees. Many credit cards charge a fee of around 3% on every purchase made outside the U.S., which can add up quickly during a vacation.

Whether you are buying a croissant in Paris or booking a hotel in Tokyo, you won’t pay extra for the privilege of using your card.

Travel and Purchase Protections

While many premium cards have stripped away ancillary benefits, the Costco Anywhere Visa® still offers decent protections.

Damage & Theft Purchase Protection: If an item you bought with the card is damaged or stolen within 120 days (90 days for New York residents), you may be covered for repairs or a refund, up to $1,000 per item.
Rental Car Insurance: The card provides secondary coverage for collision damage or theft when you rent a car and pay with the card.
Travel Accident Insurance: You receive coverage for accidental death or dismemberment if you purchase your common carrier ticket (plane, train, bus) with the card.

Is the Costco Credit Card Worth It? The Drawbacks You Need to Know

Despite the attractive rewards rates, the Costco credit card is not perfect. There are distinct disadvantages regarding how you receive your money and where you can use the card.

The Redemption Process is Rigid

Perhaps the biggest complaint among cardholders is the lack of flexibility in redeeming rewards. Unlike modern cash-back cards that let you redeem for statement credits, direct deposits, or gift cards as soon as you earn them, Costco makes you wait.

Your rewards are issued once a year, after your February billing statement closes, in the form of a reward certificate. This certificate must be redeemed in a physical Costco warehouse for cash or merchandise.

While a direct deposit option was added recently for rewards balances over $500, most users will still find themselves tethered to the once-a-year, in-store redemption cycle. If you close your account before receiving the certificate, you forfeit all accrued rewards.

Lower Returns on In-Store Spending

It seems counterintuitive, but the Costco card isn’t actually the best card for shopping at Costco. Earning 2% back is decent, but other cards on the market offer similar or better flat rates.

For example, the Wells Fargo Active Cash® Card offers an unlimited 2% cash rewards on purchases, without the restriction of redeeming only once a year.

Additionally, the card only works on the Visa network, meaning you cannot use it if a merchant only accepts Mastercard or Amex (though Costco warehouses exclusively accept Visa).

No Welcome Bonus

In the competitive world of credit cards, a “sign-up bonus” or “welcome offer” is standard. Competitors often offer $200 or more in bonus cash if you spend a certain amount in the first three months.

The Costco Anywhere Visa® Card typically offers no such bonus. You start earning from zero, relying entirely on the ongoing rewards rates to build value.

Comparing the Costco Card to Competitors

To truly determine if the card is worth it, you have to look at the alternatives.

Costco Card vs. Wells Fargo Active Cash® Card

If you prefer simplicity, the Wells Fargo Active Cash® Card might be a better fit. It offers a flat 2% cash reward on purchases. While you lose the 4% gas and 3% dining categories, you gain the freedom to redeem rewards whenever you want.

You also don’t need a specific store membership to hold the card, and it often comes with a cash rewards bonus for new cardholders.

Read More About Wells Fargo Active Cash® Card

Costco Card vs. Chase Freedom Flex® or Unlimited®

The Chase Freedom cards are popular for their flexibility. The Freedom Flex often features rotating 5% cash-back categories (which sometimes include wholesale clubs or gas), while the Freedom Unlimited offers strong dining and drugstore rewards.

The key difference is the ecosystem: Chase points can be combined and transferred if you have a premium Chase card, offering potentially higher value for travel than Costco’s fixed cash-back rates.

Who Should Get This Card: Is the Costco Credit Card Worth It?

Based on the benefits and limitations, this card is a clear winner for specific types of spenders.

The Commuter: If you drive a gas guzzler or have a long commute, earning 4% back on fuel is one of the best returns you can find on a no-annual-fee card. Even if you never buy gas at Costco specifically, the 4% applies to gas stations worldwide.
The Costco Loyalist: If you do the bulk of your household shopping at the warehouse, earning 2% (or 4% with Executive status) is a no-brainer. Plus, the card doubles as your membership ID, so you have one less card to carry.
The Budget Traveler: Earning 3% on dining and travel with no foreign transaction fees makes this a powerful travel card for people who don’t want to pay hundreds of dollars for a premium travel rewards card.

Who Should Skip It?

Conversely, you might want to pass on this card if:

You struggle with credit card debt: The interest rates on this card can be high (variable APRs often range from 18.99% to 26.99% or higher). If you carry a balance, the interest you pay will quickly wipe out any rewards you earn.
You hate waiting for rewards: If you prefer instant gratification or want to use cash back to lower your monthly bill immediately, the once-a-year certificate system will be frustrating.
You might cancel your Costco membership: If you aren’t sure you’ll be a Costco member in two or three years, getting a card that anchors you to the store is risky. Closing the card later could hurt your credit score.

Expert Opinions: Is it a Smart Financial Move?

Financial experts generally view the Costco Anywhere Visa® favorably, but with caveats. Margaret Campbell, a Professor of Marketing at UC Riverside, notes that while the card is a good option for members due to its benefits and lack of annual fee, it isn’t for everyone.

“Some people who struggle managing credit often find that only using cash is a good self-control mechanism,” Campbell explains. She advises potential applicants to consider their personal self-control around debt.

However, she also points out that the travel benefits are often underrated. The bundle of protections and lack of foreign transaction fees add significant value that isn’t always immediately obvious on the rewards chart.

Ultimately, the consensus is that the card is a “keeper” for responsible credit users who are already part of the Costco ecosystem. It rewards the specific spending habits of suburban families—gas, groceries, and dining—better than almost any other no-annual-fee card.

FAQs: Is the Costco Credit Card Worth It?

Is there an annual fee?

There is no annual fee for Costco Credit Card itself. However, you must maintain a paid Costco membership to hold the card.

Do I lose my rewards if I close my account?

Yes. If you close your credit card account or cancel your Costco membership before your February reward certificate is issued, you forfeit all the cash back you accumulated during that year.

Can I use the card anywhere?

Yes, the Costco Anywhere Visa is accepted anywhere Visa is accepted worldwide. You are not limited to using it at Costco.

Does the card offer a welcome bonus?

Unlike many other cash back cards that offer $200 or more after spending a certain amount in the first three months, the Costco Anywhere Visa typically does not offer a cash sign-up bonus. The value comes from the long-term rewards rates rather than an upfront payout.

Final Word: Is the Costco Credit Card Worth It?

So, is the Costco credit card worth it?

Yes, if: You are a current Costco member with excellent credit who spends significantly on gas and dining, and you don’t mind waiting once a year for your rewards payout.

No, if: You want a welcome bonus, you carry a balance from month to month, or you want the flexibility to redeem cash back instantly.

The Costco Anywhere Visa® Card by Citi is a workhorse. It’s not flashy, and it doesn’t offer luxury travel lounge access, but it offers substantial, practical value on the things you buy every day. If you are already pushing a heavy cart through the warehouse aisles, having this card in your pocket is likely a smart financial move.