Tiger Brokers

The Costco Visa Card's Gas Rewards Just Got Bigger

Motley Fool
28 Jan

KEY POINTS

  • The Costco Anywhere Visa® Card by Citi now offers 5% cash back on gas at Costco and 4% cash back on other eligible gas and electric vehicle (EV) charging purchases for the first $7,000 combined spend per year, and then 1% thereafter.
  • The card has a $0 annual fee and earns rewards for travel and Costco purchases.
  • There are some drawbacks, and you may have better options for your travel and grocery spending.

The Costco Anywhere Visa® Card by Citi used to pay 4% back on all eligible gas and EV charging purchases. Now, cardholders will earn 5% cash back on gas at Costco and 4% cash back on other eligible gas and electric vehicle (EV) charging purchases for the first $7,000 combined spend per year, and then 1% thereafter.

If the Costco Visa Card weren't already one of the best credit cards for Costco shoppers, it definitely is now.

Ratings Methodology

Costco Anywhere Visa® Card by Citi

Apply Now for Costco Anywhere Visa® Card by Citi

On Citi's Secure Website.

Rates & Fees

Rating image, 3.50 out of 5 stars.
3.50/5Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Rating image, 3.50 out of 5 stars.
3.50/5Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Credit Score:Circle with letter I in it. Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions.

Recommended Credit Score required for this offer is: Excellent (740-850)
Apply Now for Costco Anywhere Visa® Card by Citi

On Citi's Secure Website.

Rates & Fees

Credit ScoreCircle with letter I in it. Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions.

Excellent (740-850)

Intro APR

Purchases: N/A

Balance Transfers: N/A

Regular APR

19.49% - 27.49% (Variable)

RewardsCircle with letter I in it. Earn 5% cash back rewards on gas at Costco and earn 4% cash back on other eligible gas and electric vehicle (EV) charging purchases for the first $7,000 combined spend per year, and then 1% thereafter. 3% cash back on restaurants and eligible travel purchases and eligible travel, including Costco Travel. 2% cash back on all other purchases from Costco and Costco.com. 1% cash back on all other purchases

1% - 5% back

Annual Fee Circle with letter I in it. N/A

$0

Welcome Offer

N/A

  • There aren't many cash back cards that earn this much on gas and EV charging. Bonuses at restaurants, on travel, and at Costco and costco.com make this a well-rounded card overall. But there are some frustrating downsides, including a slow cash back redemption process and the lack of a sign-up bonus.

    • Bonus gas and EV charging rewards
    • Bonus restaurant and travel rewards
    • No annual fee
    • No foreign transaction fees
    • Purchase protection
    • No sign-up bonus
    • No 0% intro APR
    • Inconvenient cash back redemptions
    • Discover one of Citi's best cash back rewards cards designed exclusively for Costco members
    • Earn 5% cash back rewards on gas at Costco and earn 4% cash back on other eligible gas and electric vehicle (EV) charging purchases for the first $7,000 combined spend per year, and then 1% thereafter.
    • 3% cash back on restaurants and eligible travel purchases and eligible travel, including Costco Travel.
    • 2% cash back on all other purchases from Costco and Costco.com
    • 1% cash back on all other purchases
    • No annual fee with your paid Costco membership and enjoy no foreign transaction fees on purchases
    • Receive an annual credit card reward certificate, which is redeemable for cash or merchandise at U.S. Costco warehouses, including Puerto Rico

The perks of the Costco Anywhere Visa® Card by Citi

Very few credit cards pay 5% back on gas and EV charging. If you fuel up at Costco -- which typically has some of the lowest gas prices you can find -- then this card is tough to beat when it comes to gas rewards. And the 4% rate at other gas stations is still pretty generous.

The card also has no annual fee and comes with other perks, including:

  • 3% cash back on restaurants and travel, including Costco Travel
  • 2% cash back on Costco purchases
  • 1% cash back on other purchases

As an added bonus, the card doubles as a Costco membership card, freeing up a little room in your wallet.

The drawbacks of the Costco Anywhere Visa® Card by Citi

There's little reason not to get this card if you're a Costco member, given that there's no annual fee (aside from your yearly Costco membership fee, that is). However, it's not best in class in every respect.

First, the gas rewards rates are limited to your first $7,000 in combined annual spending. So if you spend $6,000 on groceries, then only your first $1,000 in gas spending will earn 4% to 5%. Beyond that, you only earn only 1% cash back on gas.

The biggest drawback of the Costco Anywhere Visa® Card by Citi is how you receive your rewards. At the end of your February billing cycle, you'll receive a Costco reward certificate, which you can only redeem at a Costco warehouse.

Meanwhile, other cash back cards allow you to use your rewards at any time, and you can redeem them for statement credits, direct deposits, travel purchases, and more.

Lastly, there are cards that pay higher rewards rates for dining, travel, and grocery spending. If you use a dedicated travel rewards card and another card for groceries, you can earn up to 5% back.

If you buy gas at Costco, this card is an easy choice

Despite its drawbacks, the Costco Anywhere Visa® Card by Citi is a great option for Costco members who buy gas at their local warehouse. If you use it only for gas at Costco, you'll likely get 5% cash back on every purchase.

Add in the fact that there's no annual fee, and there's almost no downside.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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