As a follow-up to an article we posted last week about whether now may be a good time to apply for a credit card, we wanted to offer our 2 cents on an upcoming option: the Costco Anywhere Visa Card by Citi.
While current Costco Amex cardholders will receive their new card by mail – and without a hard inquiry – for use on June 20th of this year, those in the market for a credit card should check out the rewards that this card offers and consider whether it makes sense for them.
For starters, there is no explicit annual fee attached to this card, but potential cardholders need to be members at the warehouse club, which offers an annual membership for $55. This card, which acts as the Costco membership card as well, can be used anywhere Visa is accepted to accumulate cash back. That said, the rewards program is fairly robust (and an upgrade from the current Amex card), especially if you fill up your tank often, enjoy eating out, and/or travel a lot:
- 4% cash back on $7,000 spent on gas (excluding stations attached to supermarkets, convenience stores, and other warehouse clubs)
- 3% cash back on all eligible travel purchases as well as restaurants
- 2% cash back on all purchases made at a Costco location or Costco.com
- 1% cash back on all other purchases
It’s important to remember that the rewards accrued by using the new Visa card will come in the form of a voucher that will be snail-mailed once a year. With this coupon, cardholders can pay for their purchases directly at a Costco register or convert it to cash at any Costco’s customer service.
While the rewards can’t be redeemed on-demand and the method of cashing in isn’t the most efficient in today’s digital day and age, current Costco members are getting a solid upgrade; those on the fence for a membership or just looking for a new credit card in general may want to strongly consider the merits of this card as well.
At the time of publication, Condor Capital Management held positions in Costco, Visa, and Citigroup stock in certain client portfolios.