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A Costco credit card acts as a consumer's membership ID, along with a typical credit card through Citi. The Citi Costco Card offers both a personal credit card along with a business version as well.
What Are The Main Benefits Of The Costco Credit Card ?
Costco credit cards offer a number of added benefits for its users. The advantages offered make the membership fees for Costco virtually non-existent.
The Costco credit card also offers cash back on certain purchases.
The card offers 4% cash back on on eligible gas and EV charging purchases for the first $7,000 per year and then 1% thereafter, 3% cash back on restaurants and most travel purchases, 2% cash back at Costco and Costco.com, 1% cash back on all other purchases.
The Costco rewards rate is among the highest compared to other store credit cards.
For the redemption of consumers' rewards, each year at the conclusion of the February billing statement, the cardholders will receive their cash-back reward certificate.
This may be used at any Costco store anytime before the end of the year. The certificate may be used for cash back or merchandise.
A newly added feature for cardholders in 2022 is if consumers have $500 or more in rewards, they may have their certificate as a direct deposit into their bank account.
One added benefit of the credit card is that it also acts as your Costco membership card, so you would not have to have both your membership ID and the credit card itself. All you have to do upon entering the store is simply show the card, and you will be good to enter!
Furthermore, there are no foreign transaction fees unlike some credit card companies. This comes with the stipulation that the company you are making a purchase through accepts Visa.
There are no annual fees associated with this card, aside from the fee to have the Costco membership.
Cardholders have some form of protection for their goods purchased on the Costco credit card, which offers full coverage for items stolen or damaged within 120 days of purchase.
Furthermore, the Citi card comes with fraud protection with a. $0 liability on unauthorized charges.
In addition to the $0 liability, they also allow you to instantly shut down your card if you can’t find it, and turn it back on instantly if you locate it.
If you are a business owner, Costco offers the Costco Anywhere Visa Business card, which allows the consumer to earn cash back on rewards on their purchases for their business.
An added benefit to this would be that they are able to add employees as authorized users so they are able to complete the shopping as well.
In addition to the high cash back when traveling, the Citi Card offers a lot of advantages when traveling as well. In terms of fees, consumers will not be charged when making purchases internationally if the seller accepts a Visa card.
Furthermore, it comes with car rental insurance, travel, and emergency assistance, and roadside assistance service.
In addition to cash back rewards, being a cardholder grants users early access to tickets for concerts and sporting events.
Costco Anywhere Visa® Card by Citi
How to Maximize Costco Credit Card Benefits?
Given the variety of benefits offered by the Costco Credit card, there are a number of ways to maximize your membership to get the full amount of benefits offered.
- Gas – If you tend to spend more money on gas, restaurants, and travel, typical gas credit cards don't offer a higher rate in these categories.
While the gas earns cash back at a 4% rate, it has a cap of $7,000, which then turns to 1% once it has been reached. Restaurants and traveling, however, earn a 3% cash back, with no spending cap at all, so your rewards could be quite high depending on your lifestyle.
- Restaurants and Travel – Another great way to maximize your benefits of the Costco Card is to use it when you are out to eat and traveling as it has a 3% cash back return.
- Perks and Protections – To ensure you are maximizing all of the benefits, be sure to take advantage of the perks like worldwide car rental insurance, travel and emergency assistance, and roadside assistance service.
How to Redeem Costco Card Benefits
Costco card is one of the top cash-back cards out there, Redeeming your cash back with a Costco card is easy and quick. Here are the options you have when redeeming:
- Cash Back – Typical redemption for the cash back benefits is through a rewards certificate given to cardholders at the end of February to use before the conclusion of the calendar year. The rewards will depend on how much you put on the Costco Credit card, and if you are a new user, it will not apply to you.
- Receiving the certificate – Once the February billing cycle had ended, you could receive the certificate through the mail, email, or the mobile app.
- Mail – You will receive the rewards through the mail if you are not enrolled in paperless billing. This will be included on the final page of your February paper statement.
- Email – if you are enrolled in paperless billing, you will have your rewards sent to the email on file on or shortly after the February statement closing date.
- Mobile App – Finally, credit card members may access Costco mobile app to redeem benefits.
How to Get a Costco Credit Card?
Getting the Costco card is easy as long as you meet the requirements. You can apply in-store, online, and over the phone.
Here are the steps to take:
1. Have The Minimum Requirements
No matter what form of application, you must have an excellent credit score of 700+ to have good odds of approval. Furthermore, your income, debt, and ability to make credit card payments will also be considered.
2. Have a Costco Membership
Before applying for the credit card, potential cardholders must sign up for the Costco membership. Membership costs offer two separate plans at $60 for the Gold Star membership and $120 for the Executive membership.
Once you have decided which membership level you would like to have and signed up, you then have to decide how you want to apply for the credit card: in store, online, or over the phone.
You have three options when it comes to applying for the Costco card:
Costco allows potential card holders to ask for an application at their local Costco warehouse.
They would simply have to go to the membership counter and ask for an application. The application is simple, you would have to supply things like your name, address, and social security number.
One important note to remember is that the name must match the Costco membership card, otherwise you will not be able to be considered for a costco credit card.
Applying online is a straightforward process. If you are unwilling to enter the store, you could visit costco.com, search Citi Visa in the search bar, and hit enter. Once you find the correct link, you will submit the required information and hit submit.
When online, you will supply:
- First and last name (must match membership name)
- Street address
- The phone number you may be reached at
- Employment status
- Highest level of education
- Other financial information (estimated annual income/rent or mortgage per month), what bank accounts you have and your date of birth
- Social security number
You will then be able to see if you are pre-approved. If approved, you will receive your card in a few business days, faster than the time it usually takes with other cards.
If you are unable to go in store, or apply online, people could also call 1-800-259-3052 and go through the application process over the phone.
How To Activate Costco Card?
New credit card users may activate their new cards in three methods. Over the phone (855) 378 – 6467 or whatever the number is on the front of the card. Keep in mind you will need your social security number, card number, or phone number associated with the application on file.
Another way to activate the credit card is on their website by logging onto their Citibank account and locate the activation code.
Finally, new users could log in to the Citibank mobile application, log in, and tap the credit card activation button.
Overall, Costco credit cards offer a number of advantages that Costco members are able to apply for. If you want to add another credit card to your wallet, this is an excellent option if you are already a Costco member.
In addition to being able to use the Costco credit card in the store, it also offers the convenience of using it anywhere else.
Costco Credit card users could request an increase online through the Citibank mobile app or through their customer service number. Users should pay their bill on time for at least six straight months, reduce their debt, and update your income if you received a raise.
For new applicants, a credit score of 700 will have a relatively high chance of approval. For users applying for a business credit card, you should have a credit score of at least 720.
Costco is not a typical credit-builder card since the score needed is already high. Like any other credit card, the Costco credit card will help build your credit score as long as you pay off the bill monthly. In order to help build your credit score, one should pay on time, every month and spend a small portion of the credit limit allowed.