Costco Credit Card FAQs: Everything You Need to Know

Costco is known for its bulk-buying model and wide variety of products, but did you know it also offers a credit card? The Costco Credit Card, issued by Citi, is incredibly popular among Costco members, providing a range of benefits tailored to frequent shoppers. This article will explore various FAQs about the Costco Credit Card, helping you make an informed decision about whether it’s the right choice for you.

What is the Costco Credit Card?

The Costco Credit Card is a rewards credit card that offers members cash back on purchases made at Costco and elsewhere. Known officially as the Costco Anywhere Visa Card, it provides significant returns on categories like gas, dining, and travel. This card is designed primarily for Costco members, so you must have a membership to apply.

How Do I Apply for the Costco Credit Card?

Applying for the Costco Credit Card is straightforward. You can apply online through the Citi website, or in-person at a Costco location. Here’s the basic process for online applications:

• Visit the Citi website.
• Fill in the application form with personal and financial information.
• Submit the application and wait for approval.

Typically, approval takes just a few minutes, and you’ll receive an immediate decision.

What Are the Benefits of the Costco Credit Card?

The Costco Credit Card comes with several benefits:

• Cash Back Rewards: Earn 4% cash back on eligible gas purchases, 3% on restaurants and eligible travel, and 2% on Costco purchases. All other purchases earn 1% cash back.
• No Annual Fee: If you’re a Costco member, there’s no annual fee for the card.
• No Foreign Transaction Fees: Ideal for travelers, this feature allows for swiping abroad without additional fees.
• Purchase Protection: Offers coverage for lost or damaged items within 90 days of purchase, subject to certain limitations.

Are There Any Fees Associated with the Costco Credit Card?

While the Costco Credit Card does not charge an annual fee as long as you maintain your Costco membership, there are certain fees you should be aware of:

• Late Payment Fees: If you miss a payment, a late fee may be applied.
• Returned Payment Fees: If a payment is returned, there will be a fee.
• Cash Advance Fees: If you take a cash advance, a fee will be charged based on the amount.

Can I Use the Costco Credit Card Anywhere?

Yes, the Costco Credit Card is a Visa card, which means you can use it anywhere that accepts Visa. However, to earn the most cash back rewards, it’s beneficial to use it primarily at Costco or in the specific categories outlined in the benefits.

How Do Cash Back Rewards Work?

Cash back rewards are calculated based on your purchases. Each year, the cashback rewards are added up, and you receive a reward certificate, which can be redeemed at your next Costco visit. This makes it easy to see how much you’ve earned and to take advantage of your rewards in one go.

What Credit Score Do I Need to Get Approved?

While there is no official credit score requirement publicized by Citi, having a good to excellent credit score (typically 700 and above) increases your chances of approval. Credit history, income, and debt-to-income ratio will also be considered during the approval process.

What If I Don’t Use My Costco Credit Card Often?

If you infrequently use the card, you may still benefit from occasional cash back when shopping at Costco or in other qualifying categories. However, to maintain your credit score and avoid potential issues, it’s advisable to use the card periodically rather than letting it sit inactive.

Can I Manage My Costco Credit Card Online?

Yes, Citi provides an online portal and mobile app for managing your account. You can check your balance, view statements, pay your bill, and track rewards through these platforms, making it convenient to stay on top of your account.

Can I Transfer My Existing Balance to the Costco Credit Card?

This card does not offer an introductory balance transfer offer, but you can still transfer balances. The APR applied to transferred balances will be based on your creditworthiness. Be sure to review the terms carefully before proceeding.

What Happens If I Cancel My Costco Membership?

Cancelling your Costco membership will not immediately cancel your Costco Credit Card. However, it will affect your eligibility for the card and the rewards it offers, as the card is linked to your membership. It’s advisable to check directly with Citi for your options if you decide to cancel your membership.

Conclusion

The Costco Credit Card offers various features, making it an appealing choice for Costco members. With its robust cash back rewards, there are numerous ways to benefit from the card year-round. Whether you’re a frequent shopper at Costco or simply looking for a credit card that offers good rewards, the Costco Credit Card may be a worthy addition to your wallet.

Consider your shopping habits and financial objectives carefully before applying, and make sure the card aligns with your needs.