A few years ago Costco dropped its relationship with Amex and started a new one with Visa. With that came the launch of the Costco Anywhere Visa® Card by Citi. Many Costco loyalists already have this credit card and enjoy its benefits. However, if you don’t have one yet or you’re thinking about a new Costco membership, you might want to know if the Costco Anywhere Visa is the right card for you?

Let’s begin by going over some of the general features of the card and then we’ll get into the pros and cons.

Card Features

Bonus Offer

There is no sign-up bonus offered on this card.

Annual Fee

This card has no annual fee with your paid Costco membership.

Earning Rates

Great earnings rates in popular categories is what makes this card so intriguing. You’ll earn:

• 4% cash back on gas purchases, up to $7,000 per year
• 3% cash back on travel and restaurants
• 2% cash back on purchases at Costco and Costco.com
• 1% cash back on all other purchases

There are other cash back cards on the market that earn higher rates in some of those categories, but it’s hard to find a better “jack of all trades” card that carries no annual fee.

Who is this card for?

The Costco Anywhere Visa® card may be perfect for people who want cash back and are in the following situations:

Situation	Reason
You're just starting out with credit cards and aren't looking to carry many of them	This "jack of all trades" card is great for the credit card beginner because it has no annual fee and has great earning rates on some of the most popular bonus categories (dining, travel, gas)
You're an existing Costco member (or plan to start a membership) who spends a lot on dining, travel and gas	If you eat out quite a bit, travel frequently and drive a car often, you'll build a cash back balance quickly
You spend a lot at Costco	This card earns an unlimited 2% cash back on all purchases made at Costco and Costco.com

You can apply for the Costco Anywhere Visa® here.

Who might not like this card?

However, this card may not be for everyone. There are a few reasons why this may not be the card for you, including a big one regarding when you receive your cash back savings:

Situation	Reason
You're not a Costco loyalist	If you don't have a Costco membership, then this card comes with an annual fee. If you have a membership but don't shop at Costco all that much then you lose a big piece of the card's benefit which is earning 2% at Costco and Costco.com.
You want a sign-up bonus	This card has no sign-up bonus, so if you're looking for a quick pop of cash back, this card won't deliver on that.
You want instant access to your cash back savings	Costco provides your cash back earnings as an annual rewards certificate every February. You can then take your certificate to Costco to get your cash. Most other cash back cards allow users to get their cash once their account has at least $25.
You spend more in other bonus categories like grocery or entertainment (movies, concerts, sporting events, etc)	If you can't take advantage of the high earnings rates in the card's bonus categories, then there are other cash back cards that could earn you more each year.
You'd rather earn points or miles	More experienced users know that you can get much more value in earning points over cash back. If you want to redeem earnings for luxury travel instead of cash back, use a card that earns Chase Ultimate Rewards, American Express Membership Rewards or Citi ThankYou points that can be redeemed for oversized value.

What other cards compete with the Costco Anywhere Visa?

There are several cash back cards on the market that compete with the Costco Anywhere Visa. The Chase Freedom Flex℠ and Discover It® Cash Back cards offer 5% cash back on purchases made in rotating quarterly categories and 1% on all other purchases. These cards take a little more effort as you need to monitor the categories each quarter to ensure you’re maximizing the cash back you can earn.

The other cash back cards that compete with the Costco Anywhere Visa have set earnings rates in certain categories. These don’t change quarter to quarter so it’s great for those without the time or desire to track category spending. In general you earn rewards at a set rate and so there’s nothing to think about or remember.

Direct Competitors

Here are a few cards that you could consider instead of or in addition to the Costco Anywhere Visa. All have no annual fee:

• Blue Cash Everyday® Card from American Express – The Blue Cash card earns 3% at U.S. supermarkets and 2% at gas stations and department stores. It also has a sign-up bonus of $150 after spending $1,000 in purchases during the first three months of account opening.
• Chase Freedom Unlimited® – This card earns a flat 1.5% on all purchases and has a sign-up bonus of $150 after spending $500 in purchases during the first three months of account opening.
• Citi® Double Cash Back – This unique card earns 2% cash back on all purchases, 1% when you make a purchase and 1% when you pay your bill.
• Wells Fargo Case Wise Visa® – This card earns a flat 1.5% on all purchases. It also comes with a $200 sign-up bonus after spending $1,000 in purchases during the first three months of account opening.
• Capital One® Quicksilver® – The Quicksilver card earns a flat 1.5% on all purchases and comes with a $150 sign-up bonus after spending $500 in purchases during the first three months of account opening.
• Capital One® SavorOne℠ – The SavorOne card earns unlimited 3% on dining and entertainment and 2% at grocery stores. It comes with a $150 sign-up bonus after spending $500 in purchases during the first three months of account opening.

Card Comparison Based on Spending

With so many cash back options, it can be difficult to determine which card is best for your situation. To help you decide, you should estimate your annual spending and calculate what kind of cash back you could earn over a given period of time. As an example, I created a table comparing five of the credit cards mentioned above to show the potential cash back savings over a two year period.

Note, that cards with sign-up bonuses have those bonus amounts added to their Year 1 savings only. All calculations were done based on the following monthly spending assumptions ($150 travel, $400 dining, $100 entertainment, $150 gas, $400 groceries and $800 general). Your actual spending will vary and could alter the results.

Credit Cards (*cards with sign-up bonuses)	Year 1 (includes sign-up bonus)	Year 2	Two Year Total (w/out sign-up bonuses)	Two Year Total (includes sign-up bonuses)
Costco Anywhere Visa	$426	$426	$852	$852
*Blue Cash Everyday Card	$504	$354	$708	$858
Citi Double Cash Card	$480	$480	$960	$960
*Chase Freedom Unlimited	$510	$360	$720	$870
*Capital One SavorOne	$558	$408	$816	$966

In this example, the Capital One SavorOne card would earn you the most cash back over the first two years. Remember though that $150 of those earnings are in a sign-up bonus which you wouldn’t receive each year. So if you plan to keep the card for many years, you should factor that in as well.

If you concentrate on what your category earnings would be without factoring in the one-time sign-up bonus, the Costco Anywhere Visa comes in 2nd place. You’ll notice that regardless of sign-up bonus or not, the Citi Double Cash Card fairs very well.

Below are a few other card benefits that makes the Costco Anywhere Visa card attractive.

Card Benefits

Extended Warranty Protection

With this benefit, you can extend the time period of the manufacturer’s warranty by two additional years. This also adds two years to any warranties purchased.

No Foreign Transaction Fees

For those who travel internationally, this card does not charge foreign transaction fees.

Bottom Line

The Costco Anywhere Visa card is a good “jack of all trades” type of card. If you’re a Costco loyalist, this card should probably be in your wallet. Even if you’re not shopping at Costco very often, the card can still be quite valuable. For example, people with long commutes and salespeople could easily cover the $60 Costco membership fee with the 4% cashback on gasoline.

However, if you aren’t interested in a Costco membership or you want instant access to your cashback, there are other cards that may fit better. I shop at Costco quite a bit and use this card anytime I’m there. I also use the card for all gasoline purchases unless gas is currently one of the Chase Freedom rotating 5% bonus categories. If you’re unsure about whether this is the right card for you, check the other cash back cards for a better fit.

Apply here for the Costco Anywhere Visa® Card.