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Hello, frequent Costco shoppers! Welcome to the complete guide “Is Costco Credit Card Worth It?“.

Also note that to write this blog post, we enrolled and used this credit card for almost 3 months, and now we’re here to guide you on this. We highlighted many queries, like pros and cons, annual fees, and many more. 

So let’s dive in quickly and understand. 

What is a Costco credit card?

Costco is a wholesale goods provider where you’ll get items like electronics, furniture, FMCG, and many more. Recently, they launched a credit card service under which you can use your cards for various purposes, like paying for EV charges, flights, and other Costco areas. 

Also note that Costco is acceptable where Visa is accepted, and there is no annual fee charged by them. 

How can you apply for a Costco credit card?

I applied for this card by visiting the membership desk, but if you want to apply, you can also contact Citi Bank at 1-800-970-3019. 

You can also visit their official website, and there you’ll find the “Apply Now” option. There you’ll find two types of cards: one is a normal card, and the other is a business card. 

Below that, we discussed the differences between both cards. 

Also, note that we’re just helping you out and not sponsoring anything.

Is a Costco credit card useful?

Yes, the reason I am saying this is because of the percentage of cashback they offer. Another reason is that you can add “Credit Card” and “Costco Membership” to just one single card. 

I mean, you don’t need to carry your membership card and credit card separately.

Also Read: Advia Credit Union CD rates

Is it hard to get a Costco credit card?

No, it is not that difficult to apply for a Costco credit card, but as per my experience, they check credit history for this. In general, your credit score should be 720 or better. It increases the chances of approval of your application to avail the credit card.

That’s why you need some credit history to show your trustworthiness.

Is there a fee for a Costco credit card?

As of now, we haven’t heard that they’re charging any fees for this. Note that policies may change from time to time, so it’s better to contact Citi Bank customer support and ask for fees and extra charges.

Can you use Costco Credit card on Flights?

Yes, you can travel with this credit card, and as we mentioned above, you’ll get 3% cashback on every dollar spent. Also, note that there might be terms and conditions on 3%; that’s why it is important to go through their policy.

The best thing here is that you don’t need to pay foreign transaction fees. 

Can you keep your Costco credit card without a membership?

No. If you want a Costco credit card, then it is mandatory to be a member and a frequent Costco shopper. 

Also, note that you don’t need to worry about carrying both cards because it is a 2-in-1 card. This means membership and credit cards fall into one single card. The front side would be credit, and the back would be a membership card.

What if my application fails for a credit card at Costco?

If you’re facing this issue, don’t worry; contact customer support and submit the necessary information they need for approval. 

Still, if your application is pending, you should visit an offline Costco store and talk with an executive.

Pros and cons.

Pros:-

1. No yearly fees: There are credit card companies in the market that charge annual fees just because you’re using them. Under Costco, if you’re a member, you don’t need to pay any fees for your credit card, and the membership fee is just $60.00. 

2. Unlimited Cashback Limit: On their website, they haven’t mentioned anywhere that there is a limit on cashback. Even I had a conversation with the executive, and they said that there is no cashback limit. 

3. Amazing Cashback: 4% on eligible gas and EV charging, 3% on restaurants and eligible travel, 2% on Costco purchases, and 1% on all other purchases. Now tell me if these offers don’t sound exciting. 

4. Citi App: The app itself is enough to manage your expenses. Under this, you can calculate your FICO score, track your finances, make payments from debit to credit card, have alert settings, and many more security features. 

Cons:-

1. Membership cancellation: Let’s say you cancel your Costco membership but don’t cancel your credit card. After 30 days, you need to pay an additional $85 as a fee. 

What is the annual fee for Costco?

Luckily, there is no annual fee for the Costco Credit Card, but if you cancel your membership at Costco, there might be some additional charges you are liable to pay. 

Above, we discussed everything about this. Things to know before applying for a Costco credit card.

Is Costco Credit Card worth it?

The answer is yes. Most people feel stressed when they hear the word credit card. One of my friends said, Let’s say you have $1500 in your account, then don’t use that money for shopping. 

Use your credit card, because on this you’ll get unbelievable cashback. At first, I thought that this might be another marketing way to grab me, but later on, I felt that I should give it a try.

Now, after using it for 3 months, I don’t think there is anything wrong with it. 

Know what credit card holders of Costco says.

Joshua (name changed)

I think it is a great deal. Go for it. 

Fernando Vin (name changed)

I saved $107 this month. I just bought it because of the juicy cashback offers. 

Viviana (name changed)

Just one word: awesome. I am saying this because I got approval within 2 days. I applied for a credit card from another company, and it has been 5 months since I received a reply from them. Their customer service is too quick and responsive.

FAQ on Is Costco Credit Card worth it

Conclusion on Is Costco Credit Card worth it

The credit card offered by Costco is a good deal for those who are frequent buyers. I’m saying this because I saved a lot and have been using it for the past 3 months. 

They offer amazing cashback, which helps you save a lot. However, there is one drawback I found: if you cancel your Costco membership, you have to pay $83 after the cancellation of your membership fees.

Still, if you’re confused and won’t be able to decide whether to go for this card or not, you can take consultation from those who are already using it, contact customer support service, or any financial advisor. 

Thanks for reading.