Charles H. Miller
Costco fans rejoice – this is the card for you, offering cash back on a number of transactions, including those that are most often made. You get 4% back on US gas (up to $7K/yr), 3% back at restaurants and on some travel services, 2% at Costco purchases, and 1% on everything else. In addition, the Costco Anywhere Visa® Card by Citi also offers interest-free purchases for the first 7 months after which a variable APR of 15.49% will apply. There is no annual fee, but you must have a paid Costco membership. Check it out.
Highlights
- Earn 4% cash back on US gas (up to $7K/yr); 3% cash back at restaurants and on some travel services; 2% at Costco purchases; 1% on everything else.
- Rewards are given as an annual reward coupon in your February billing statement.
- 0% intro on purchases for 7 months, then 15.49% variable
- Citi-standard shopping and travel benefits
- No annual fee with paid Costco Membership
How It Works?
Cash back: The card offers rather generous 4% cash back on gas (up to $7,000 per year, then 1%), 3% on restaurants and travel, 2% back on Costco and Costco.com purchases, and 1% on all other purchases. So if you already spend $7,000 on gas per year, this card will get you $240 in cash back.
Redeem rewards: The cash back rewards are given as an annual reward coupon in your February billing statement, which can then be used for cash or for merchandise at Costco.
Shopping and travel benefits: Standard for many Citi cards, you get damage and theft protection, extended warranty, and Citi Price Rewind, as well as trip cancellation and interruption protection, worldwide travel accident and car rental insurance, and travel & emergency assistance.
APR: 0% intro APR on purchases for the first 7 months, after which it goes to 15.49% variable. The same rate (15.49%) applies to balance transfers.
Annual Fee: It’s $0 (free), but it does require a paid Costco Membership. It could be worth for those who don’t already have it to apply for one.
Costs
- 0% Intro APR intro on purchases for 7 months, then 15.49% Variable
- 15.49% Variable APR on Balance Transfers
- 3% Balance Transfer Fee ($5 minimum)
- 3% Foreign Transaction Fee (no fee for purchases at Costco worldwide)
- $0 Annual Fee with Costco membership.
Pros
- Great rewards – including 4% (though capped) on gas purchases, and 3% on restaurants and travel services, plus 2% at Costco stores and Costco.com, and 1% on everything else. Also, these rewards come without requiring annual fee (though you will need a paid Costco membership).
- Citi shopping and travel perks – it is good to know that you get an array of additional services that can help in various situations.
- Introductory 0% APR on purchases – helps you buy some big-ticket item(s). You have 7 months to take advantage of this interest-free offer.
Cons
- Foreign transaction fee – it may not apply to Costco’s locations outside of the U.S. but you are still better off using a different card while visiting other countries.
- No sign-up bonus – perhaps we are asking too much, but it is usually those sort of things that make for a sweeter deal.
Is This The Card For You?
All in all, the Costco Anywhere Visa® Card by Citi is a great choice for anyone who buys frequently from Costco, or intends to do so in the near future. Beyond Costco, the card also rewards restaurant, gas and travel purchases, as well as everything else with 1% in cash back rewards. There is also an introductory 0% APR on purchases for the first 7 months; there is no annual fee, but you will need a paid Costco Membership (which we think is worth getting for those who don’t already have one).
