6 Things You Need to Know About the New Costco Credit Card

By Kris Majaski. Last updated 7 January 2021. 1 comment

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Whether you’re a frequent Costco shopper or not, you’ve likely heard by now of the new Costco Anywhere Visa® Card by Citi from our partner Citi. For years, Costco only accepted American Express credit cards. This new partnership has some cardholders worried that they might lose their valuable benefits and rewards. Well, rest assured, Costco credit cardholders (and those who are considering becoming one). The new card comes with even more rewards. Here’s what you need to know about the new Costco credit card and how you can change your rewards strategy to get even more for your money.

More Rewards for Gas, Restaurants, and Travel

The Costco Anywhere card awards 4% back on gas purchases at Costco and other gas stations, up to $7,000 per year, 3% back on restaurant and eligible travel purchases, 2% back on purchases at Costco and online at Costco.com, and 1% back on all other purchases. For old Costco cardholders, you’ll notice that the new card provides quite a boost in the rewards you earn from your purchases. In fact, this card awards more for your gas purchases, restaurant, and travel purchases than most other general rewards credit cards, not to mention the rewards for your Costco purchases, too.

So, for Costco shoppers, the card awards more for gas, dining, travel, and Costco purchases than any other card.

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Hassle-Free Transitioning for Previous Costco Cardholders

If you were already a Costco TrueEarnings cardholder, you don’t have to worry about a complicated transition process, and you won’t lose any of the rewards you have already accumulated. Most importantly, you won’t need to reapply for the new card, and there won’t be an extra inquiry on your credit report for the new card. By now, you may have already received your new card. Your information and rewards will be transferred, and you can begin shopping with and earning more rewards with your new card. If you have a balance on your old card, you can continue to make your monthly payments until it is paid off.

Get the Most Out of Your Costco Membership

There aren’t any additional fees for the new card, which might come as a surprise considering that the rewards are so much higher. However, you do still need to maintain your Costco membership, with different levels starting as low as $60 per year. Like before, you can consider the membership fee the annual fee, except you get all the benefits of Costco membership in addition to the card benefits you get as a cardholder. Among credit cards that award higher rates of rewards for everyday purchases, the $60 membership is competitive. 

To boost your Costco rewards even more, you might want to consider getting the Executive Gold Star Costco membership, which comes with 2% rewards on Costco purchases. If you spend at least $2800 per year at Costco, your rewards will pay for the extra cost for Executive membership. Together, the Executive membership and the new Citi Costco credit card will get you a whopping 4% cash back on Costco purchases.

Not Just a Grocery Store Card

Although it might seem to be, the Costco card isn’t just a grocery rewards card. You also get one of the highest rates available for gas, restaurants and travel. There are very few rewards cards that cover as many different types of purchases entirely in the bonus categories. If your spending varies and covers many of these categories, you won’t have any problem racking up the rewards with this card just through your regular everyday spending, even if you don’t frequently shop at Costco stores. Note that you will need to redeem your rewards at a Costco store. (See also: Best Credit Cards for Everyday Purchases)

Transition Includes all Visa Credit Cards

The transition to the new Costco card means that all Visa credit cards will be accepted, too. That means you have more options on rewards credit cards to use at Costco. So even if you aren’t sold on the Costco card, you can use any Visa credit card. (See also: Best Credit Cards to Use at Costco)

All Costco Members Should Consider the Costco Card

If you benefited from the previous Costco credit card, you will likely be pleasantly surprised with the new card’s rewards program. If you aren’t already a cardholder, there’s really no reason not to get 2% cash back on your Costco purchases.

And if you aren’t already a Costco shopper, the new card provides a solid argument for paying for the membership simply because you can’t earn as much as 4% back on gas and 3% back for dining and travel purchases with any other credit card, even with the Costco membership fee. If you just use your card for dining out, traveling, and the occasional Costco trip (to redeem your rewards), it won’t take much to rack up more rewards than your current go-to rewards card.

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Guest's picture

You must redeem your rewards at a Costco store, but you can redeem your reward certificate for cash, if you wish. I always do that, because paying for goods with your rewards doesn't earn you cash back on that purchase.