Rewards Credit Cards July 4, 2020 0

Citi Costco Credit Card Review

Citi Costco Card

Hello Friends, I hope all is well with you! I am going to be reviewing the Citi Costco Credit Card today. These opinions are my own, and I am in no way influenced by anyone.

Overall Verdict: The Citi Costco rewards credit card is a good card. It offers you a high cash back amount on gas, but this is only up to a certain amount. It also offers a high cash back amount on restaurant and eligible travel purchases. Unfortunately, it does not offer the benefits that Chase or Capital One may offer. In order to get this card, you have to have a Costco membership, which is only $60 per year.

Some things about this card that I do like:

  1. High cash back amount on gas, travel, and dining
  2. No foreign transaction fees

Some of the things that I don’t like:

  1. No sign-up bonus
  2. Ridged way to redeem rewards
  3. Not as many benefits and protections as some of their competition

What type of reward are you getting?

The Citi Costco rewards credit card offers you the opportunity to earn cash back for every dollar that you spend. The rewards accumulate in your account until February of the following year. Your cash back is then distributed as a credit card reward certificate. You are able to redeem the reward for merchandise at Costco or for cash back. You must also redeem your rewards certificate in person by the end of the year it was issued. For example, if today’s date is July 5th, 2020 and this is the first year that I own the card, I would receive my certificate in February of 2021 and have until December 31st, 2021 to go in person and redeem the rewards certificate.

Is there an annual fee?

Technically, this card does not have an annual fee but then again it does if that makes sense. Citi is not going to charge you an annual fee; however, in order to apply for this card, you must have a Costco membership, which is $60 annually plus tax.

What is the rewards amount?

The Citi Costco rewards credit card offers you the chance to earn 4% cash back on eligible gas worldwide, including Costco; this reward amount is for the first $7,000 per year and then it turns to 1% after that. It’s important to note that not all places you fill up gas at are eligible. Gas purchased at superstores, supermarkets, convenience stores and warehouse clubs other than Costco or for fuel used for non–automobile purposes are not eligible for the 4% cash back reward amount; they are only eligible for the 1% cash back reward. You may be wondering where you can fill up gas, and this is a valid question. As long as you don’t fill up gas at Costco’s competitors, you should be fine. Most convenience store gas pumps are coded as gas stations, so don’t worry. You are also able to earn 3% cash back on eligible dining and travel, 2% cash back on all purchases made at Costco or their website, and 1% on everything else.

For more specific on what qualifies as eligible and ineligible, check out their reward program terms.

Is there a bonus offer?

There is no sign-up bonus for this card.

Are there foreign transaction fees?

This card does not have any foreign fees

Are there any other benefits?

The Citi Costco credit card benefits are similar to the Citi Double Cash rewards card benefits.

They offer:

  1. $0 liability for unauthorized charges – you are not liable for any unauthorized purchase made on your card
  2. 24-hour fraud protection – you will get alerted if Citi sees any unusual activity
  3. Identity theft solutions – Citi will help you to resolve any identity theft issues
  4. The lost wallet service – your card will be replaced in a timely manner if the card is lost or stolen
  5. Damage and theft protection – this protection may cover you for repairs or refunds in the event that the item is damaged or stolen. You must use this card to make the purchase

For more information and details on their benefits, check out their benefits page.

What is the interest rate and are there any other fees?

The Citi Costco rewards credit card does not have an introductory APR offer. Your APR will be around 15.24%, but it depends on the prime rate and your credit score.

Their other fees include:

  1. Balance transfer fee – $5 or 3%, whichever is higher
  2. Cash advance fee – $10 or 5% of the amount of each cash advance, whichever is greater.
  3. Late payment fee – up to $40
  4. Return payment fee – up to $40

For more information on their fees, check out their fee schedule.

How is the customer service like?

There are a few ways that you can contact Citi’s customer service. The first and most common way would be to call the number on the back of the card. The second way would be to mail in your question, comment, or concern to one of their PO boxes. The third way would be to visit a branch if you are close to one. The last way would be to chat with them through their online messaging system.

Should you get the Citi Costco Card?

Who it’s perfect for:

  1. People who have a Costco club near them and can shop there
  2. People who want a high rewards card in certain categories
  3. People who want no foreign transaction fees

Who it isn’t perfect for:

  1. People who are not located next to Costco
  2. People who want more benefits
  3. People who want a more flexible way to redeem rewards
  4. People who spend most of their money outside of their high reward categories

If you are still unsure if a rewards credit card makes sense, check out my post on Why You Should Use Rewards Credit Cards.

Additionally, if this card isn’t right for you, I invite you to check out my credit cards page for more information on other cards.

About the author

Mr. NahasFinance:

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