People love shopping at Costco because they can save a lot of money!
Buying in bulk can deliver exceptional value for families, resulting in significant savings on groceries and essential items throughout the year. Costco has long held its place as a beloved and cost-effective choice.
And if you use the right credit card at the checkout, you can save even more and get some extra benefits when they buy things like chicken, packs of socks, or big jars of peanut butter.
Costco has its own special credit card by Citi, and it’s pretty good. But other Visa credit cards also work well at Costco and offer good deals. You can maximize your rewards with the best Costco credit cards.
How Does Costco Work?
Costco operates membership-based warehouse stores in 12 countries, offering members great savings with discounted prices on a wide range of products, including groceries, clothing, household items, and business & restaurant supplies.
Each Costco store also features additional services like a photo center, auto center, optical center, and pharmacy.
You can make purchases both in-store and online at Costco.com, and you can also buy fuel at Costco gas stations. They offer two primary membership tiers:
Gold Star and Business, each costing $60 per year
Executive memberships at $120 per year. Executive members enjoy additional benefits such as 2% rewards on eligible purchases.
These stores are designed for bulk shopping, making it ideal for families, businesses, and individuals looking to save money on everyday essentials and more.
What credit cards does Costco take?
When it comes to payment, Costco primarily accepts Visa credit cards for in-store purchases. This means that Mastercard, American Express, and Discover cards are not valid forms of payment when shopping in physical Costco locations. However, for online shopping, you can use a broader range of credit cards.
Payment methods accepted in Costco stores:
Visa Credit Cards
Costco Shop Card (gift card)
Most PIN-enabled debit/ATM cards
Mobile wallet transactions (like Apple Pay, Samsung Pay, and Google Pay) that are not linked to Amex, Mastercard, or Discover cards
Cash or checks from an existing member
Traveler’s checks
Electronic Benefits Transfer (EBT) cards
For online purchases on Costco.com, you can use:
All Visa, Mastercard, and Discover cards
PIN-enabled debit cards and ATM cards
Costco Shop Cards (gift cards)
Costco shoppers must ensure they have a Visa card when making in-store purchases to avoid any payment issues.
While this Visa-exclusive rule applies at Costco stores & gas stations, it provides more flexibility for online transactions, where Mastercard & Discover cards are also accepted.
This dual approach allows customers to choose their preferred payment method based on their shopping habits.
Best Credit Cards for Costco
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Best for Travel Rewards - card_name
The card_name is an excellent choice for in-store and online Costco shopping, if you’re inclined towards travel rewards. With this, you earn 2 miles for every dollar spent, including at Costco.
You enjoy a welcome bonus of bonus_miles_full and 5 miles per dollar on booking hotels & rental cars through Capital One Travel. It’s a great companion for international trips with no foreign transaction fees.
It is one of the best Costco credit cards, as it enhances your experience with valuable features like purchase protection & extended warranty coverage.
You’ll also receive travel benefits up to $100 credit for Global Entry/TSA Precheck application fee and two free visits per year to either the Capital One Lounge or Plaza Premium Lounge with just a $95 annual fee.
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Best Cashback Card for Gas & Costco Loyalists - Costco Anywhere Visa® Card by Citi
The Costco Anywhere Visa® Card by Citi is a top pick for those who frequently visit Costco and fill up at their gas stations.
It offers an impressive 4% cash back on gas purchases (up to $7,000 per year), 3% back on dining & eligible travel expenses, and 2% at Costco.
This no-annual fee card is exclusive to Costco members and serves as both- their credit card & Costco membership card.
Cashback rewards are distributed yearly as a certificate in February. You must visit your local Costco store to redeem them before your Costco membership expires. It’s a must-have for loyal Costco shoppers.
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Best for Everyday Purchases & Rewards Value - card_name
The card_name is an all-rounder card, ideal for everyday spending at Costco and beyond, with a flat 1.5% cash back on all purchases.
You get an impressive 5% cashback on travel bookings through Chase Ultimate Rewards and a solid 3% cashback on dining & drugstore purchases.
This no annual fee card includes an offer of bonus_miles_full
And a intro_apr_rate,intro_apr_duration, then reg_apr,reg_apr_type.
Its simplicity and versatility make it the best Costco credit card for those who want to earn rewards on Costco trips without hassle.
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Best for earning Cash Back - Wells Fargo Active Cash® Card
The Wells Fargo Active Cash® Card is a standout option if you like cashback. It is among the best credit cards for Costco while boasting an unlimited 2% cashback reward for all qualifying purchases without the hassle of dealing with bonus categories.
For avid Costco Wholesale Club shoppers seeking a financial ally, the Wells Fargo Active Cash comes highly recommended.
It sports a no-annual membership, bonus_miles_full. and intro_apr_rate,intro_apr_duration, then reg_apr,reg_apr_type.
This Costco cash back credit card also offers valuable cell phone protection, covering up to $600 for theft or damage to your phone. It’s straightforward, making it perfect for those who prioritize cashback rewards above all.
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Best for Welcome Bonus & Perks - card_name
The card_name is a fantastic choice for Costco lovers looking for a generous welcome bonus of bonus_miles_full And valuable perks.
Cardholders can enjoy a lucrative rewards structure, earning 5X points on travel made through Chase Ultimate Rewards, 3X on dining, grocery shopping & selected streaming services, and 2X on other travel-related expenses.
It ranks among the top-tier travel credit cards with just a $95 annual fee. The comprehensive travel benefits make it another great credit card for Costco enthusiasts who enjoy traveling & dining out.
These include an annual $50 Ultimate Rewards Hotel Credit, no foreign transaction fees, trip cancellation insurance, rental car coverage, baggage delay insurance, etc.
| Credit card | Uthrive rating | Intro offer | Rewards rate | Annual fee | Learn more |
|---|---|---|---|---|---|
Terms Apply | Rating
4.7/5 | Intro Offer bonus_miles_full | Reward Rates Up to 5x Miles | Annual Fees annual_fees | |
Terms Apply | Rating
4.3/5 | Intro Offer bonus_miles_full | Reward Rates 1% - 4% cash back | Annual Fees annual_fees | |
Terms Apply | Rating
4.8/5 | Intro Offer bonus_miles_full | Reward Rates Up to 5% Cashback | Annual Fees annual_fees | |
card_name card_name Terms Apply | Rating
4.6/5 | Intro Offer bonus_miles_full | Reward Rates Earn unlimited 2% cash rewards on purchases | Annual Fees annual_fees | |
Terms Apply | Rating
4.8/5 | Intro Offer bonus_miles_full | Reward Rates Up to 5x Points | Annual Fees annual_fees |
Is the Costco Credit Card Worth It?
Shopping at wholesale clubs like Costco presents a fantastic opportunity to save a lot of money.
Pairing these savings with rewards becomes twice as advantageous, provided you pick the best credit card for Costco purchases!
These rewards can add up significantly if you are a regular Costco customer, especially for gas and groceries.
Costco is a superb choice for optimizing your budget. Thus, Costco credit cards can be beneficial for frequent Costco shoppers to amplify their earnings while also aligning with their overall expenditure.
Things to consider before applying for Costco Credit Card
Before you apply for a Costco credit card, it’s essential to consider several factors to ensure it aligns with your financial goals and needs:
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Credit Score
Knowing your credit score is crucial for identifying credit cards that match your eligibility.
Costco credit cards typically target individuals with good to excellent credit.
Many free credit score resources provide monthly updates on your creditworthiness.
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Purpose of the Card
One should apply for a credit card with a specific purpose in mind.
For instance, if you’re a Costco shopper and pay with cash because you lack a Visa credit card, it’s a valid reason since you’re missing out on potential rewards.
Understanding your main objective will help you choose the most suitable card.
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Costco Membership
To apply for a Costco credit card, you need to be a Costco member.
Remember that the membership comes with an annual fee.
Consider whether you are already a member or willing to become one.
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Usage Plan
Beyond the primary objective of acquiring a card for Costco, assess your intended card usage for other purchases to maximize the benefits.
If it’s for everyday expenses (explore flat-rate cashback cards like the card_name) or for international travel (get a card with no foreign transaction fees like the card_name).
How to choose the Best Costco Credit Card?
Shopping at Costco can lead to substantial savings, and pairing your purchases with the perfect credit card can even help you earn rewards while cutting costs, creating a win-win situation.
While choosing the best card to optimize your spending at Costco, it’s crucial to ensure that it aligns with your overall spending patterns.
Selecting the best Costco credit card involves considering key aspects like membership requirements, cashback rewards, annual fees, foreign transaction fees, redemption flexibility, interest rates, additional benefits, and your credit score. Being a Costco member is a prerequisite, so factor in the membership fee.
If you’re seeking a card that offers straightforward cashback to offset your Costco expenses, the Costco Anywhere Visa® Card by Citi could be an excellent fit.
However, if your goal is to accumulate travel rewards, exploring options like the card_name or other cards featured on our list- for high-value travel redemptions- might be the way to go.
FAQ
Which is the best credit card for Costco purchases?
The Costco Anywhere Visa Card by Citi is a top pick, offering an impressive 4% cash back on gas purchases (up to $7,000 per year), 3% back on dining & eligible travel expenses, and 2% at Costco.
card_name is also a good choice for Costco purchases. It provides 2x miles on every purchase, 5x miles on hotels & rental cars booked through Capital One Travel, $100 credit for Global Entry, and 75,000 bonus miles.
How does the Costco Anywhere card work?
Cashback rewards are distributed yearly as a certificate in February. You must visit your local Costco store to redeem them before your Costco membership expires.
What payment methods are accepted at Costco?
Payment methods such as Visa Credit Cards, Costco Shop Card, Debit/ATM cards, Mobile wallet transactions, Cash or checks from an existing member, and Electronic Benefits Transfer (EBT) are accepted in Costco stores.
Is it hard to get a Costco Credit Card?
Getting a Costco Credit Card is generally not difficult if you meet the credit score requirements.
Individuals with good to excellent credit scores can apply for it.
If you have a strong credit history, the application process is straightforward, and approval is likely.
What credit score do you need for the Costco Credit Card?
Costco credit cards typically target individuals with good to excellent credit. Many free credit score resources provide monthly updates on your creditworthiness.
Does Costco accept Visa credit cards?
Costco primarily accepts Visa credit cards for in-store purchases. This means that Mastercard, American Express, and Discover cards are not valid forms of payment when shopping in physical Costco locations.
Do I have to be a member to get a Costco credit card?
Yes, you need to be a Costco member to apply for a Costco credit card. Remember that the membership comes with an annual fee.
Does Costco count as a grocery store on your credit card?
No, Costco typically does not categorize as a grocery store on credit card statements.
It is usually classified as a “wholesale club” or “warehouse store” for credit card rewards purposes.
Can I use Chase at Costco?
Yes, you can use Chase credit cards at Costco for in-store purchases, as long as they are Visa-branded Chase cards.
However, other Chase cards like Mastercard or American Express are not accepted for in-store payments at Costco.
Is it good to have a Costco Credit Card?
Costco is a superb choice for optimizing your budget. Costco credit cards can be beneficial for frequent Costco shoppers to amplify their earnings while also aligning with their overall expenditure.
