Costco is more than just a store to buy food and household supplies — the warehouse club also sells furniture, sporting goods, apparel and more. There’s a pharmacy and tire sales/installation section as well as a gas station. Home services such as solar installation and kitchen remodels are also available. And then there’s liquor. Costco is one of the largest retailers for wine in the world, selling affordable bottles of wine as well as high-end rare vintages. With all the options and conveniences Costco provides its members, it’s surprising how limited the retailer is about credit cards. Having a credit card ready to pay for all the unexpected finds at the store is a good idea, but you better make sure it’s a Visa — Costco does not accept any other credit cards. Before Visa was Costco’s accepted card, members could pay exclusively with American Express. The two split, however, going their separate ways in March 2016, with Visa stepping in. If you’re a regular shopper at Costco, choosing the right Visa credit card could help you earn rewards faster. The following cards would make good company for the Costco membership card that sits in your wallet: Avid Costco shoppers looking for a seamless integration between membership, rewards and spending will like the flexibility of the Costco Anywhere VIsa® Card by Citi. There’s no annual fee and the variable APR is 15.49%. However, Costco membership of at least $60 per year and a good credit score are needed to get approved. Although it’s a branded credit card, you can use it for purchases anywhere, as the name implies. You’ll earn rewards regardless of where the purchases are from. In fact, you could earn more spending outside of Costco than at the store, especially if you refuel frequently (gas purchases earn the highest rewards).
Pros:
Earn cash back on all your purchases, to be redeemed at CostcoNo annual feeUp to 4% cash backCan be used at stores outside of CostcoAvailable as a personal and business card
Cons:
Rewards are only available once per yearRewards can only be redeemed in person at Costco
Chase has several Visas that are accepted at Costco. Frequent shoppers could make the most of their spending using the Chase Freedom Unlimited®. There is no annual fee, which is helpful considering a Costco membership is $60 or $120. Plus, you can earn 5% on travel (through the Chase Ultimate Rewards website), 3% on drugstore or dining purchases and 1.5% on every other purchase. Best of all, there are no limits on how much cash back you can earn. The card has a variable APR of 15.24% to 23.99%, depending on your credit. It comes with a few introductory features that make it appealing such as no-interest on purchases in the first 15 months. The no-interest period will come in handy to pay off larger Costco purchases such as furniture, electronics or appliances.
Pros:
No annual feeIntroductory no-interest period on purchases for the first 15 monthsEarn 1.5% cash back at Costco.
Cons:
Warehouse-club bonus category doesn’t come up often
The Active Cash® card is part of the premium Visa Signature program, which provides extra benefits to cardmembers. You’ll have access to benefits at select luxury hotels. Concierge service is also available 24/7 to help you with travel, entertainment and dining bookings. The card has an APR based on your creditworthiness of 15.24%, 20.24% or 25.24%. However, a sign-up bonus of no interest for 15 months also applies to balance transfers made in the first six months. Plus, you can earn a bonus of $200 after you spend $1,000 in the first 120 days after approval.
Pros:
The 2% rewards bonus is applicable on purchases.You can match the rewards earnings you’d get back at Costco as an Executive member.Premium rewards card with no annual feeIntroductory no-interest period on purchases for the first 15 monthsPay no interest for 15 months on balance transfers made in the first 120 days.
Cons:
No dedicated bonuses or perks available for CostcoRequires a very good credit score to qualify
There’s no annual fee for carrying the Cash+™ and you can receive $150 in rewards as a bonus if you spend $500 within 90 days of approval. In addition, balance transfers get an introductory 0% APR in the first 12 months, which will revert to the standard variable APR of 13.99%-23.99%.
Pros:
Speed up your rewards-earning potential with 5% cash back on two categories of your choice each quarter.Gas purchases at Costco and other gas stations earn a 2% reward.$150 cash bonusNo annual feeNo-interest balance transfers for the first 12 months
Cons:
Costco spending earns only 1% to 2%Redemption limited to statement credits, bank transfer or rewards card
The cards selected provided the best combination of factors. Some of the larger credit card providers like Chase offer several rewards cards, all with attractive features. To provide you with a variety of options from different financial institutions, we picked one “best” credit card per issuing bank based on the highest potential to earn rewards. Think about how much spending you plan on doing at Costco (and in general). Is an annual fee worth it? Unless you plan on regularly using the associated rewards, such as free travel redemptions, choosing a card with no annual fee may be the wisest choice. Otherwise, the rewards earnings could get swallowed up by the annual fee. Finally, if you’re looking for a credit card simply to make payments at Costco, you may want to apply for the Costco Anywhere Visa® by Citi. It’s the only branded Costco card, integrated with shopping at the warehouse club. Rewards can exclusively be redeemed at Costco and you’ll earn 2% cash back for store purchases plus 4% cash back for gas (up to $7.000). However, keep in mind that this card is best for the Costco long-hauler. It’s only available if you’re a Costco member, which requires paying an annual membership fee of $60 or $120. While you could still use the card for purchases if you cancel membership, you’d be forfeiting rewards since they can only be redeemed for in-store Costco purchases. Non-members use Costco Shop Cards as a hack to get around the annual membership fee. If you know someone who is a Costco member, they can purchase a Costco Shop Card on your behalf for a select amount. Costco warehouses allow non-members to shop at the club and pay for items using the Shop Card — without having a membership. If you don’t have a Visa credit card, you could also use a Visa debit card to pay for purchases and gas at the warehouse. Other ways to pay at Costco are:
CashChecks (personal and business check are accepted)EBT cardsMobile payments (Apple Pay, Google Pay and Samsung Pay with a Visa)Traveler’s checks
