The Costco Anywhere Visa Card by Citi has become a popular choice among Costco members, offering a blend of rewards and benefits tailored to frequent shoppers and gas station users. As credit cards go, it's geared specifically toward people who often find themselves browsing Costco's massive warehouse aisles. But is this card really the best deal for everyday expenses? In this detailed review, we'll dive into its reward structure, fees, ease of use, and where it shines (or falters) compared to other credit cards. If you're considering adding the Costco credit card to your wallet, read on to get a full picture before making the decision.

Overview of the Costco Anywhere Visa Card by Citi

The Costco Anywhere Visa Card is one of the few credit cards that directly integrates with a retail membership. While other cards offer general rewards for shopping, the Costco credit card is specifically tailored to provide high rewards on select categories such as gas, travel, dining, and Costco purchases. It's worth noting that you must be a Costco member to apply for this card, which already creates a level of exclusivity compared to most credit cards.

As of 2024, the card continues to offer a solid cashback structure with no annual fee attached to the card itself. However, since you're required to be a Costco member, you'll need to factor in that cost, which can range from $60 to $120 a year, depending on your membership level. Let's break down the card's rewards structure and key features.

Rewards Breakdown

The rewards system of the Costco Anywhere Visa Card is designed to appeal to specific spending habits. Here's what you can expect from the card in terms of cashback:

4% cashback on eligible gas purchases (up to $7,000 annually, then 1% after that): This is one of the card's standout features. If you're someone who spends a significant amount on gas each year, the 4% cashback rate is highly competitive and could lead to significant savings. It's important to note, though, that this applies not just to Costco gas stations but also to other eligible gas stations.

3% cashback on restaurants and travel: Dining out and travel expenses also rack up rewards with this card, which makes it a solid choice for frequent travelers or those who enjoy eating out regularly. This includes flights, hotels, and even things like Airbnb stays.

2% cashback on Costco purchases: While Costco is the card's key feature, the 2% cashback on in-store and online purchases might seem lower compared to some other retailer cards. Still, if you're already a Costco shopper, this adds up over time, especially if you make large or frequent purchases.

1% cashback on everything else: This is fairly standard for a rewards card and applies to all other purchases made with the card outside of the bonus categories.

Fees and Costs to Consider

One of the most attractive features of the Costco credit card is its lack of an annual fee, assuming you already have a Costco membership. However, that membership cost acts as a substitute for a typical annual fee, meaning that without maintaining your membership, the card becomes unusable. It's a unique feature, as most cards are separate from membership programs.

Another standout feature for international travelers is the lack of foreign transaction fees. Many credit cards charge up to 3% for international purchases, but the Costco Anywhere Visa Card waives these fees, making it a good option if you travel abroad frequently.

It's also worth mentioning that there is a penalty APR of up to 29.99% for late payments or going over your credit limit. This could be a significant cost if you're not diligent about managing your balance and making timely payments.

Costco Credit Card vs. Competitors

When compared to other credit cards in 2024, the Costco Anywhere Visa Card has its strengths, but it also faces stiff competition. Cards like the Chase Freedom Unlimited or the American Express Blue Cash Preferred offer more flexible cashback categories or upfront bonuses, which Costco's card lacks.

For example, the Chase Freedom Unlimited card offers 1.5% cashback on all purchases and 3% on dining and drugstores while also providing an initial bonus offer. Additionally, many other cashback cards don't require membership fees, which could save users money if they aren't already committed to shopping at Costco.

However, the Costco card's gas rewards are hard to beat. The 4% cashback is higher than most competitors, especially since it applies to all eligible gas stations. This makes it a strong contender if you drive frequently or have a long commute.

Ultimately, the decision to choose the Costco credit card depends on your spending habits. If you're a regular Costco shopper and use a lot of gas, this card could provide excellent rewards. If your shopping habits are more varied, you might want to explore cards that offer broader or more flexible cashback programs.

Conclusion

The Costco Anywhere Visa Card is a solid option for frequent Costco shoppers and people who spend a lot on gas and travel. The rewards structure is competitive in key categories, and the lack of foreign transaction fees is a major plus for international travelers. However, its rewards redemption process may feel restrictive to some, especially with its once-a-year cashback payout.

If you're someone who's already shopping at Costco regularly and filling up your tank frequently, this card can be a good fit. But if your spending is more varied or you don't want to be tied to an annual membership, it may be worth exploring other credit cards that offer more flexibility and upfront bonuses. Ultimately, this card shines brightest when used strategically within its specific reward categories.