Citi® Costco Anywhere Visa® Credit Card Review

When it comes to selecting a credit card, it’s essential to find one that aligns well with your spending habits and lifestyle. The Citi® Costco Anywhere Visa® Credit Card is a popular choice, particularly for those who frequently shop at Costco and spend a significant amount on gas, dining, and travel. In this comprehensive review, we will delve into the various aspects of this credit card, including its key features, benefits, pros and cons, and more, to help you determine if it’s the right card for you.

Citi® Costco Anywhere Visa® Credit Card Key Takeaways

Before we delve into the detailed review, here are some key takeaways about the Citi® Costco Anywhere Visa® Credit Card:
– Cash Back Rewards: Offers 4% cash back on eligible gas, including gas at Costco for the first $7,000 per year, and then 1% thereafter. Earn 3% cash back on restaurants and eligible travel purchases worldwide, 2% on all other purchases from Costco and Costco.com, and 1% on all other purchases.
– No Annual Fee: The card has no annual fee, but a Costco membership, which costs $60 annually, is required.
– Interest Rates: A variable APR of 20.49% for purchases and balance transfers.
– No Foreign Transaction Fees: Ideal for international travelers as there are no foreign transaction fees.
– Excellent Credit Required: Requires an excellent credit score (740-799) for approval.
– Penalty Fees: Return payment and late payment fees up to $41 and a high penalty APR of 29.99%.

Citi® Costco Anywhere Visa® Credit Card Pros and Cons

Pros:

1. Excellent Rewards Rate for Gas: The card offers a high 4% cash back on eligible gas purchases, including those at Costco, for up to $7,000 per year.
2. Great Rewards for Dining and Travel: Earn 3% cash back on dining and eligible travel purchases worldwide, making it a versatile card for frequent travelers and food enthusiasts.
3. No Annual Fee: While a Costco membership is required, the credit card itself has no additional annual fee.
4. No Foreign Transaction Fees: This makes it an attractive option for international travelers.
5. Decent APR Rate: The variable APR of 20.49% is competitive compared to other rewards credit cards.

Cons:

1. Costco Membership Required: The card requires an active Costco membership, which costs $60 annually.
2. No Welcome Offer: Unlike many other rewards cards, the Citi® Costco Anywhere Visa® Credit Card does not offer a sign-up bonus or introductory rewards offer.
3. Limiting Redemption Policy: The cash-back rewards can only be redeemed once per year, which may not be convenient for some users.

Citi® Costco Anywhere Visa® Credit Card Benefits

Cash Back Rewards

The primary appeal of the Citi® Costco Anywhere Visa® Credit Card is its robust cash-back rewards structure. Here’s a closer look at how the rewards break down:
– 4% Cash Back on Eligible Gas: This is arguably the card’s most compelling feature, particularly for those who drive frequently. The 4% cash back applies to the first $7,000 spent annually on eligible gas purchases, including those at Costco. After hitting the $7,000 cap, the cash-back rate drops to 1%.
– 3% Cash Back on Restaurants and Travel: The card offers 3% cash back on dining at restaurants, as well as on eligible travel purchases worldwide. This includes flights, hotels, car rentals, and more.
– 2% Cash Back on Costco Purchases: For Costco members, this is a significant benefit. Earn 2% cash back on all purchases made at Costco warehouses and on Costco.com.
– 1% Cash Back on All Other Purchases: For all other purchases, the card offers a standard 1% cash back.

No Annual Fee

While the card itself does not have an annual fee, it does require a Costco membership, which costs $60 per year. Given the rewards structure, many users find that the cash-back earnings more than offset the membership cost.

No Foreign Transaction Fees

For those who travel internationally, the absence of foreign transaction fees is a substantial benefit. Many credit cards charge a fee of around 3% on purchases made outside the United States. With the Citi® Costco Anywhere Visa® Credit Card, you can use your card abroad without worrying about these additional fees.

Purchase Protection and Extended Warranty

The card offers purchase protection, which covers eligible items against damage and theft within a certain period from the date of purchase. Additionally, it provides extended warranty protection, extending the manufacturer’s warranty on eligible purchases.

Travel and Emergency Assistance

Cardholders can take advantage of travel and emergency assistance services, which include medical and legal referrals, emergency ticket replacement, lost luggage assistance, and more. This can provide peace of mind when traveling.

Flexible Payment Options

The Citi® Costco Anywhere Visa® Credit Card offers flexible payment options, allowing you to pay your bill in full or carry a balance. However, carrying a balance will incur interest charges, so it’s advisable to pay off your balance in full each month to avoid these fees.

Fraud Protection

Citi provides robust fraud protection features, including zero liability for unauthorized charges. If your card is lost or stolen, Citi will work with you to resolve the issue and ensure you are not held responsible for fraudulent charges.

Conclusion

The Citi® Costco Anywhere Visa® Credit Card is a compelling option for Costco members who spend a significant amount on gas, dining, and travel. Its robust cash-back rewards structure, combined with no annual fee and no foreign transaction fees, make it an attractive choice for many consumers.
However, it’s essential to consider the card’s limitations, such as the requirement for a Costco membership and the lack of a welcome offer. Additionally, the once-a-year cash-back redemption policy may not suit everyone’s preferences.
Overall, the Citi® Costco Anywhere Visa® Credit Card offers excellent value for those who can maximize its rewards categories. If you’re a frequent Costco shopper and spend a significant amount on gas, dining, and travel, this card could be a valuable addition to your wallet.
As with any financial product, it’s crucial to evaluate your spending habits and financial goals to determine if this credit card aligns with your needs. By doing so, you can make an informed decision and select the credit card that best suits your lifestyle.