Costco Anywhere Visa Review

The Costco Anywhere Visa is a good fit for Costco members with good credit who want a solid all-around rewards card and don’t mind redeeming their cash back on a yearly basis. Plus, you’ll get rewards-earning rates that compare to the best rewards cards, with excellent rewards rates for your gas, travel, and dining purchases.  Since your redemption options are limited, however, you should look for another credit card if you want more freedom in where you use your rewards. Many competing cards offer cash back on similar everyday categories, and the rewards can be redeemed straight into your bank account or credited to your card balance.

Pros Explained

• Attractive rewards-earning rates: Earning 4% back on up to $7,000 in qualified gas purchases each year can be lucrative if you commute to work or spend a lot on gas to get around. The 3% back on dining and travel can also add up fast if you are a foodie or travel for work or leisure.These rewards rates are as good or higher than many competing retail cards as well as cash-back credit cards that don’t charge an annual fee. 
• No annual fee: You have to be a paid Costco member to qualify for this credit card, but there’s no separate annual fee. (Costco memberships start at $60 per year—and your membership fee qualifies for 2% cash back.) 

Cons Explained

• No bonus for new cardholders: Unlike some other rewards cards with no annual fee, the Costco Anywhere Visa doesn’t offer a bonus for new cardholders, which means you won’t earn extra cash just for meeting a minimum spending requirement within your first few months. Bonuses from comparable cards can be worth hundreds of dollars.
• Limited rewards redemption: Cash back earned with this card is only offered once each year when your February billing statement closes. You must redeem your rewards at a physical Costco store in the U.S., meaning you have to get in your car and drive to collect your cash back. While it’s nice that you can redeem for cash as well as a credit on purchases made at the register, other store cards and rewards cards in general make it much easier to redeem rewards.

Earning Points & Rewards

The Costco Anywhere Visa offers high earning rates for a card without an annual fee.

You’ll get:

• 4% back on up to $7,000 spent at eligible gas stations worldwide each year, including Costco gas stations
• 3% back on dining and eligible travel
• 2% back on in-store and online Costco purchases
• 1% back on everything else 

The gas rewards on this card can add up fast if you drive a lot. Should you spend at least $7,000 per year on gas (a little over $583 per month), you would earn $280 in this category aloneEven if your spending is more in line with the average American household ($2,094—or a little less than $175 per month—in 2019, according to the U.S. Bureau of Labor Statistics [BLS]) you would earn about $83 inrewards just on gas each year.

The BLS also tells us that the average American household spent $3,526 on dining out in 2019, so that could be worth another $105 in cash back based on the card’s 3% dining rewards rate. On average, you could earn nearly $200 in cash back before you spend your first dollar on travel or at Costco.

Redeeming Rewards

Your rewards accumulate throughout the calendar year, January to December, and are then tallied up for distribution just once a year. The cash back comes in the form of an annual reward certificate, which arrives each year after your February account statement closes. You cannot redeem your cash back as you earn it, and you have to redeem your rewards in a single transaction at a Costco warehouse store.

While your redemption options may be limited, Costco gives you a small bit of flexibility. You can authorize anyone with a Costco membership to redeem your rewards certificate.

If you don’t redeem all of your rewards certificate on Costco merchandise, you may be able to get the difference back in cash at the register. 

Be aware, too, that you won’t receive any accrued rewards if your Costco Anywhere Visa account is closed before your February billing statement closes. So wait until you receive your rewards if you’re planning to close your credit card account or end your Costco membership.

How to Get the Most Out of This Card

Use this card for all your gas station purchases in order to maximize the 4% back earning category. You can also use it for all dining, travel, and Costco purchases in order to maximize those bonus categories. Keep in mind that you won’t receive the rewards you accrue until after your February billing statement closes each year.

Costco Anywhere Visa Card’s Benefits

• Extended warranties 
• Free FICO score
• Concierge for booking event tickets, travel, and other services

Customer Service

Citi ranked sixth out of 11 national credit card issuers in J.D. Power’s 2020 U.S. Credit Card Satisfaction Study. It earned a rating of “below average".

However, Citi does have easily accessible customer service, including phone help and online chat. Citi also offers a helpful mobile app that lets you track your purchases, see your balance, and pay your credit card bill using your mobile device.

Security Features

Citi offers standard security features for its credit cards including online fraud monitoring and early detection. It also offers a Citi Identity Theft Solutions program, a service that helps resolve identity theft on any credit card you have, not just Citi cards. 

Costco Anywhere Visa Fees

There’s nothing surprising in the fine print about the Costco Anywhere Visa card’s fees—they are comparable to the fees on similar cards. Note that you won’t be charged any foreign transaction fees on purchases made abroad.