This is going to be taking a look at the Costco Anywhere Visa credit card by Citibank, and tell who should and who should not have the card.
Today we're going to be taking a look at the Costco Anywhere Visa credit card by Citibank, and I usually tell you for each one of my credit card reviews, if your credit score is under 700, you do not need to be applying for any one of these reward credit cards, although when I checked Credit Board pools, there were many individuals who applied and were proof as credit card with scores in the low to mid 600's.
As we always do, we're going to start with the sign up bonus, unfortunately, this Costco credit card does not come with a signup Onis, although occasionally there will be offers to take money off the membership fees when you do apply for a Costco credit card, now let's take a look at the earning rate of the Costco credit card, the Costco credit card earns four percent cash back on all gas purchases. up to $7,000 per year, you'll earn 3% cash back at all dining, and travel purchases 2% cashback at Costco and Costco.com, and 1% everywhere else.
Now let's take a look at the annual fee, the Costco credit card has no direct annual fee, but it does come with an indirect annual fee, because Costco requires a membership to shop at their stores, so let's take a look at the different membership levels, Costco does offer personal and business level memberships within those memberships, there are two tiers of memberships, one that will set you back $60. and the other that is a $120, the membership that is 120 dollars, earns an extra 2% cash back when you make purchases at Costco, Costco.com, and even Costco travel, now the benefit does have a maximum earning of an extra thousand dollars per year, based on my calculations you need to spend three thousand dollars in order to offset that extra sixty dollar fee. Taking a look at foreign transaction fees, the Costco credit card has no foreign transaction fees, which makes this a great card to take with you when you're traveling internationally.
Let's take a look at our redemption options, each year you're going to receive an annual credit card reward certificate, you're going to receive the certificate after your February statement closes, now this certificate expires by December 31st of that year, now you're going to be able to redeem this for either cash or merchandise at Costco, and you have to in person, personally I'm not a big fan of waiting an entire year in order to receive my rewards, on top of that I wish they would add the ability for you to redeem your rewards online, and not only in person. Other benefits of the Costco credit card you're going to have is access to Citi rewind, you're going to get extended warranty coverage, easier to get and damage, and theft purchase protection.
So who is the Costco credit card good for? If you're someone who spends a lot of money on gas burning, four percent cash back on your gas purchases is a very strong earning rate, if you're a frequent Costco shopper, and you want to go to a rotation around your Costco credit card, whereas a Costco credit card has pretty good earning rates across other categories as well.
So what someone who should not get the Costco credit card? I think one of the obvious answers, if you don't shop at Costco there's really no reason for you to get this credit card, or if you're somebody who prefers to juggle a lot of different credit cards to really maximize all those earning categories, so to sum it up, the Costco credit card is a pretty solid credit card for someone who prefers to shop at Costco, while the Costco credit card may not have a direct annual fee by requiring a membership, it does add an indirect annual fee to this credit card, and your credit card rewards are issued annually.