What the Costco Charge Card Is

The Costco Charge Card is a credit card issued by Costco and Synchrony Bank that works only at Costco warehouses and on Costco.com. You cannot use it at other retailers. The card offers cash back rewards on Costco purchases and has no annual fee, though you must have an active Costco membership to hold one.

Costco issues two versions of the card: one for regular members and one for Executive members. The Executive version offers higher cash back rates but requires an Executive membership, which costs more per year. Both cards report to the three major credit bureaus, so using one responsibly can help build your credit history.

Key Takeaways

  • The Costco Charge Card works only at Costco locations and Costco.com, not at other stores or gas stations.
  • You earn cash back on purchases, with rates varying by category—typically 2% on Costco purchases and 1% on other things, though Executive members earn higher percentages.
  • There is no annual fee, but you must maintain an active Costco membership to keep the card open.
  • The card is issued by Synchrony Bank, and you manage your account through Synchrony's website or mobile app, not through Costco directly.
  • Cash back rewards are deposited as a statement credit once per year, usually in December.

Cash Back Rewards and How They Work

The standard Costco Charge Card earns 2% cash back on all Costco purchases (in-warehouse and online), 1% cash back on gas at any station, and 1% on all other purchases. The Executive version earns 2% on gas and 1.5% on other purchases, but still 2% on Costco purchases.

Cash back accumulates throughout the year and appears as a statement credit on your December billing statement. You do not receive a check or a separate deposit—the credit straightforward reduces what you owe. If you have a balance, the credit applies to it. If you have paid in full, the credit appears as a negative balance (a credit in your favor) that you can use toward future purchases.

Rewards do not roll over year to year. Any cash back you earn in a calendar year must be used by the end of that year or it is forfeited. Costco does not offer a way to cash out rewards as money in your bank account.

How to Get a Costco Charge Card

You must have an active Costco membership before you can open a Costco Charge Card. If you do not have one, you will need to join Costco first. Memberships are available at any warehouse or online at Costco.com.

Once you have a membership, you can request a card in three ways: in person at the membership desk of any Costco warehouse, by phone at the number on the back of your membership card, or online through Costco.com. The in-person route is usually fastest—you can often walk out with a card the same day, though it may take a few days to arrive by mail.

You will need to provide your name, address, Social Security number, and income information. Synchrony Bank will run a hard credit inquiry, which temporarily lowers your credit score by a few points. The decision is usually made within minutes. If you are denied, Synchrony will send you a letter explaining why.

Managing Your Account and Paying Your Bill

Your Costco Charge Card account is managed through Synchrony Bank's website or mobile app, not through Costco. You can set up an online account at Synchrony's site using your card number and other details from your first statement.

You can pay your bill online, by phone, by mail, or in person at a Costco warehouse. Online and phone payments usually post within one business day. Mail payments take 7 to 10 days, so plan ahead if you are close to your due date. The minimum payment is due by the date shown on your statement, typically 25 days after the statement closes.

You can set up automatic payments so your bill is paid the same way each month—either the full balance, the minimum payment, or a fixed amount you choose. This reduces the risk of missing a payment, which would damage your credit and trigger a late fee.

Interest Rates and Fees

The Costco Charge Card has no annual fee. However, it does charge interest on any balance you carry from month to month. The interest rate (called the APR, or annual percentage rate) varies by person and is based on your credit score and credit history. Costco does not publish a standard rate, but it typically ranges from 16% to 24% for most cardholders.

Late fees explore if you miss your due date. The first late payment usually costs $25 to $35, and subsequent late payments cost more. A payment 30 days late will be reported to the credit bureaus and will damage your credit score.

There is no foreign transaction fee, so you can use the card abroad if you are traveling. However, the card will not work outside Costco locations, so this is only useful if you are visiting a country with a Costco warehouse.

When Your Membership Ends

If you let your Costco membership expire, your Charge Card will stop working at Costco warehouses and online. You can still pay off any balance, but you cannot make new purchases. If you do not renew your membership within a certain period, Costco may close the card entirely.

If you close your membership intentionally, you should also contact Synchrony to close the card or confirm what happens next. Keeping an open credit card account (even unused) can affect your credit score, so it is worth clarifying your status rather than leaving it in limbo.

If you rejoin Costco later, you can request a new Charge Card. You do not have to use the same card number—Synchrony will issue a new one.

How the Costco Charge Card Affects Your Credit

Opening a Costco Charge Card will lower your credit score slightly in the short term because Synchrony runs a hard credit inquiry. This typically costs 5 to 10 points and recovers within a few months.

Over time, using the card responsibly—making purchases and paying your full balance on time each month—will help your credit score. The card reports to all three credit bureaus (Equifax, Experian, and TransUnion), so your payment history becomes part of your official credit record.

Conversely, missing payments, carrying a high balance, or closing the account can hurt your score. If you stop using the card but keep it open, it will continue to help your score by adding to your available credit and showing a long account history.

Frequently Asked Questions

Can I use the Costco Charge Card at Costco Gas Stations?

Yes. You can use it at Costco gas pumps. The card earns 1% cash back on gas at Costco (or 2% if you have the Executive version). You can also use it at any other gas station, though you will earn only 1% cash back there.

What happens to my cash back if I don't use it by the end of the year?

Cash back rewards expire on December 31 each year. Any rewards you have not used by then are forfeited. Costco does not carry them over to the next year or allow you to cash them out. The credit appears on your December statement, so check it and use it before the year ends.

Can I use the Costco Charge Card online without a membership?

No. You must have an active Costco membership to use the card anywhere, including on Costco.com. If your membership expires, the card will not work online either.

What is the difference between the standard and Executive Costco Charge Card?

The Executive version earns higher cash back rates: 2% on gas (instead of 1%) and 1.5% on other purchases (instead of 1%). Both earn 2% on Costco purchases. The Executive card requires an Executive membership, which costs more per year than a standard membership. The card itself has no additional fee.

Can I transfer my Costco Charge Card balance to another card?

No. The Costco Charge Card does not support balance transfers. If you want to move a balance to a different card, you would need to open that card with a different bank and request a balance transfer from them. Synchrony will not facilitate a transfer out.