Costco Visa Credit Card Review 2023
every single year I add up all of my spending and all of the different categories and the Costco credit card always seems to prove that it’s one of the best cash back credit cards out there because of how simple and straightforward the rewards are so in this video I’ll cover everything you need to know about the Costco anywhere Visa by City And then from there you can make your own choice of whether or not this card is going to work for you or not because nowadays there are so many different credit cards out there to
choose from that it’s sometimes hard to tell which one is going to be the best credit card for you but honestly if you just add up your spending in the different categories you can see fairly quickly which card is going to be better for you and this Costco Visa this one has really worked in my life now the first thing you need to know about the Costco Visa is that technically it doesn’t have an annual fee but I say technically because you do have to have an active paid Costco membership in order for this card
to be working for you now right now the cheapest membership you can get at Costco is 60 bucks so really even if you didn’t spend any money at Costco a 60 annual
you go out of the country and you use your credit card to buy something then you’re not going to have to pay for the currency conversion but if you are going to be using your credit card outside of the country be sure and read the fine print before you make any purchases because there are a lot of fine details that you might need to pay attention to based on where you are and what you’re going to be purchasing and then the card also has damage and Theft Protection for most purchases within 120 days and then
if you happen to be a New York resident it’s 90 days based on your state law and remember that damage and Theft Protection typically only comes on credit cards so if you usually use a debit card or cash this is not a benefit that you’re generally going to get so this is one of the main reasons why using a credit card can actually be a better option now as far as the Cash Back Rewards go with this card we should probably just call it the 4321 card because it really is that simple and there’s no
rotating categories that you have to worry about the highest rewards tier is currently four percent and this one goes for all purchases of gasoline and EV charging worldwide and this also includes purchasing gas at Costco and I’ve personally noticed that gas is typically about 10 to 20 cents cheaper per gallon at Costco versus the Standalone gas stations so not only are you getting the best value of gasoline by getting your gas at Costco but then you’re also going to get four percent back in the form of cash back by using the Visa credit card there
just know that the four percent cash back will eventually turn into one percent cash back if you spend more than seven thousand dollars per year on gas but honestly when you really do the math seven thousand dollars a year on gasoline is a lot of money so I think most households are probably going to keep the four percent cash back range and if you end up getting gas at other clubs supermarkets or super stores then technically those also don’t qualify for four percent those will push you into the one percent category for gasoline as well
now the next tier of cash back is three percent and this goes for all restaurants and this includes all cafes lounges bars and fast food so basically all dining is included at the three percent cash back rate and then eligible travel is also included in the three percent tier and this includes all hotels airfare car rentals travel agencies Cruise Lines and Costco Travel purchases so if you are going to purchase through Costco for your next vacation then you can earn that three percent reward by using the credit card and if you happen to be a
Costco executive member then you can also get an additional two percent by purchasing through Costco Travel now the next tier goes down to two percent and this one goes for all Costco purchases and Costco.com purchases so this is very straightforward but it’s basically an extra two percent for shopping at Costco and then the same thing here if you happen to be a Costco executive member then you’re also going to get an additional two percent for shopping at Costco and costco.com but just remember that the two percent cash back that you can get for being an
executive member is separate from the credit card rewards so these are two different reward systems but they can be used together if you’re using the credit card and you’re an executive member so as an example if you’re an executive member at Costco and you have the credit card and then you happen to spend a hundred dollars at Costco then basically you’ll get two dollars in cash back from the credit card and then you’ll get another two dollars in cash back by being the executive member and then those are both separate now the last tier happens
to be one percent and this goes for all other purchases and then all of the other categories that didn’t qualify so basically if you’re outside any of the other categories that pay four percent three percent or two percent then you’re at least going to be making one percent on all of those other purchases and honestly the only thing I don’t love about this credit card is that the cash back is only given to you once per year in the form of a cash back certificate and then this comes after your February statement closes each year
so you’ve basically got to get it in the winter every year and that’s your only time that you’re going to be getting the cash back and then once you do get the certificate you’ve also got to go into Costco to either get cash back or to use it towards purchases so honestly if you do live nearby a Costco this really isn’t that big of a deal but if you are far away this can make things a little bit trickier I wish that you could get the cash back whenever you want so for instance if you
just need thirty dollars here forty dollars there then you can redeem the rewards but honestly When it comes once a year you do get a very large chunk of change that you haven’t wasted on random stuff throughout the year so it is kind of a good thing in that sense so overall when you’re comparing different cash back credit cards the Costco City Visa is extremely competitive now if you want to run your own numbers and see which cards best for you definitely check out creditcards.com I’ve got an affiliate link for them in the description below
so check them out if you’re interested in comparing different credit cards because you can basically see which ones are going to be best for you based on your lifestyle and your spending habits just by visiting that website
