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The Costco Anywhere Visa® Card by Citi is one of the better reward credit cards on the market. For those of you that may have the old Amex Costco card, it’s even better than that one. If you’re already a Costco member, I’d certainly recommend taking advantage of this offer and getting your reward card.
There’s no question about it, the Costco Anywhere Visa® Card by Citi is an improvement over the old American Express version, a card that was already quite good. The Costco Anywhere Visa® Card by Citi provides 4% cash back on gas (on up to $7,000 in purchases per year), 3% back at restaurants and on travel, 2% back on Costco purchases, and finally 1% cash back on everything else.
In the select categories where the Costco Anywhere Visa® Card earns more than 1%, the rewards credit card does give you far better returns than most credit cards.
For example, the 4% rewards rate on gasoline make it one of the best credit cards for gas purchases. I rarely see cards offering that type of rate on gas. The travel rewards you can earn are competitive with some of the top travel credit cards, which is something you don’t see a lot for a store card.
The only downfall, you won’t be earning rewards through miles like a lot of the travel credit cards on the market. Despite that, there’s a number of different perks you can earn, not bad for a store rewards card.
Costco Anywhere Visa® Card by Citi Overview
Credit Card Type: Rewards Card
Annual Fee: $0
Sign-Up Bonus/Offer: there is no signup bonus.
Rewards: 4% cash back on eligible gas for the first $7,000 per year and then 1% thereafter; 3% cash back on restaurants and eligible travel purchases; 2% cash back on all other purchases from Costco and Costco.com; 1% cash back on all other purchases
Foreign Transaction Fee: 0%
Redemption Options: All the cash back you earn throughout the year is provided in the form of a certificate, every February. You have until December 31st of each year to complete the redemption before the certificate expires. Also, if your account is closed before February, for any reason, the rewards will be forfeited and not mailed to you.
Interest rate: The standard variable APR for purchases is 16.74%, and also applies to balance transfers and Citi Flex Plan. The standard variable APR for cash advances is 26.74%.
Costco Anywhere Visa® Card by Citi Benefits
Great Rewards For Costco Members: If you’re a Costco member or shop at Costco on a regular basis, there’s no question that this card can be rewarding. If you get your gas, not only from Costco, you can earn 4% cash back.
A Lot Of Opportunities To Earn: The main benefit of the Costco Anywhere Visa® Card by Citi is the cash back it provides on gas, travel, restaurant, and Costco purchases. Cardmembers earn 4% on eligible gas purchases, up to the first $7,000 per year; after that, you’ll get just 1%. In those cases, you earn just 1% back. Using the card at Costco will earn 2% cash back.
Costco Anywhere Visa® Card by Citi Drawbacks
While I’ve been high on the Costco Anywhere Visa® Card up to this point, there are some drawbacks you’re going to want to know before you make a decision to get this credit card.
Redeeming Rewards Once A Year: When you’re spending your hard-earned money to get cash back, it’s always great to have the opportunity to cash in the rewards when you want. The big downfall for the Costco Anywhere Visa® Card by Citi is redeeming your rewards, which is restricted to only once per year.
All of your cash back savings is provided as an annual credit card rewards certificate every February. If you’re anything like me, you want the option to be able to get your rewards when you want. Period. If I have to wait months for my rewards, it certainly doesn’t motivate me to go earn more. To the point, your rewards are going to be on lockdown.
Canceled Account Equals No Rewards: If your account is canceled, all of the rewards you earned will be removed. I don’t like it.
No Sign-Up Bonus: It’s always nice to have a sign-up bonus. Just like the old AMEX card, the Costco Anywhere Visa® Card by Citi has no signup bonus either. Honestly, I don’t care much about them but there’s no question about it, a sign-up bonus makes this credit card a lot more attractive.
While in the long run, this doesn’t matter, welcome bonuses attract many consumers to reward credit cards. They have the opportunity to boost short-term value tremendously. For example, the Chase Freedom® earns users $150 if they spend $500 on purchases in the first three months of account opening. That means the first $500 you spend on the card will essentially earn you a rewards rate between 31% and 35%.
Costco Anywhere Visa® Card In Closing
While Costco Anywhere Visa® Card by Citi doesn’t have a welcome bonus and having a very limited redemption window, we believe the Costco Anywhere Visa® Card by Citi is still highly valuable, especially on purchases of gas, travel, and dining out.
You can rack up the points on the gas, rarely will you find a card giving you 4% back. If you travel a lot, such as a trucker or doing deliveries, you can’t go wrong owning this card. You can hit the $7,000 mark quick, afterward, you earn 1%. Even so, that can add up.
For a store credit card, it’s one of the best on the market right now.
Now, as mentioned above, I hate waiting a year to turn my rewards in. That’s no fun and I hope they change this one day. Despite that, it’s still a solid card. If you’re a Costco shopper, I’d recommend you pick up the card and take advantage of the rewards.
Yes, the redeeming hold is terrible but I can counter that with another rewards card, one that allows me to get my cash back when I want. That would be the strategy I use if I owned the Costco Anywhere Visa® Card.