What the Costco credit card is and who issues it
Costco offers two credit cards, both issued by Citi. The Costco Anywhere Visa Card by Citi works at any merchant that takes Visa. The Costco Visa Card works only at Costco and gas stations, but offers higher cash back rates inside Costco. Both cards require a Costco membership to open.
Neither card charges an annual fee. Both are Visa cards, so you can use them anywhere Visa is accepted — though the Costco-only card's rewards are designed to push you toward spending at Costco itself. The cards are not store cards; they are full Visa credit cards that build your credit history with the three major bureaus.
Citi handles the account — billing, customer service, fraud disputes, and credit reporting. Costco does not manage the card itself, though it does set the rewards structure and membership requirement. If you have questions about your account, you call Citi, not Costco.
Key Takeaways
- Both Costco cards charge no annual fee, but you must have an active Costco membership to open one.
- The Costco Anywhere card gives 1% cash back everywhere and 2% at Costco; the Costco-only card gives 2% at Costco, 1% at gas, and 1% on travel.
- Cash back posts as a certificate you redeem at Costco, not as a statement credit or direct deposit.
- You build a standard credit history with Citi, so on-time payments help your credit score the same way any other credit card does.
- The card has no foreign transaction fees, which is unusual and useful if you travel internationally.
Cash back structure and how you actually receive it
The Costco Anywhere Visa Card earns 1% cash back on all purchases and 2% at Costco warehouses and Costco.com. You also earn 1% on gas at any station for the first $4,000 per year, then 0% after that. The Costco Visa Card (warehouse-only) earns 2% at Costco, 1% at gas stations with no cap, and 1% on travel purchases like hotels and flights.
Cash back does not appear as a credit on your statement or hit your bank account. Instead, Citi issues a Costco Cash certificate — a physical or digital voucher you bring to Costco and redeem like a gift card. Certificates are usually issued quarterly, though the timing can shift. You have two years from the issue date to spend it, or it expires.
This structure matters because you cannot use cash back to pay your bill. If you earn $100 in cash back, you still owe your full statement balance to Citi. You then go to Costco and spend that $100 certificate on groceries or gas. Some people like this because it forces them to actually use the rewards; others find it inconvenient because the certificate is not flexible.
Annual fee, interest rates, and other costs
There is no annual fee on either card. That alone sets Costco cards apart from many premium rewards cards, which charge $95 to $550 per year.
Interest rates (APR) vary by creditworthiness and change over time. Citi does not publish a single rate; instead, you receive a range in your approval letter. As of now, rates typically fall between 17% and 24%, but this varies. If you carry a balance, you pay interest on that balance every month until it is paid off. The best way to avoid interest is to pay your full statement balance by the due date each month.
Foreign transaction fees are 0% — you pay no extra charge when you use the card abroad. This is a genuine advantage if you travel internationally, because most credit cards charge 2% to 3% on overseas purchases.
Membership requirement and what happens if you cancel
You must have an active Costco membership to open either card. The membership itself costs money — Gold Star membership is typically $65 per year, Executive membership $130 per year — and that is separate from the card. You cannot have the card without the membership.
If your membership lapses, Citi will close the card. You can reopen it if you rejoin Costco, but the account closure may show on your credit report. If you cancel your membership on purpose, plan to close the card first or understand that it will close automatically within a short window.
The card is not a substitute for membership. It is an add-on that requires membership to exist. Some people open the card, use it for the no-foreign-transaction-fee benefit while traveling, then close it when they no longer shop at Costco. That is a valid use, but the membership cost is still part of the total expense.
How the card affects your credit score
Opening a Costco card works like opening any other credit card. Your credit score may dip slightly when you explore because Citi runs a hard inquiry. Once the account is open, your payment history and credit utilization (how much of your limit you use) affect your score month to month.
If you pay on time every month, the card helps your score by adding a positive payment history. If you miss a payment or carry a high balance relative to your limit, it hurts your score. The card reports to Equifax, Experian, and TransUnion, so the activity shows up on your full credit profile.
The card does not offer any special credit-building features. It is a standard credit card that happens to have no annual fee and good rewards. Your credit outcome depends entirely on how you use it.
Comparing the two Costco cards
| Feature | Costco Anywhere Visa | Costco Visa (Warehouse Only) |
|---|---|---|
| Works outside Costco | Yes, anywhere Visa accepted | No, Costco and gas only |
| Cash back at Costco | 2% | 2% |
| Cash back everywhere else | 1% | 0% |
| Gas cash back | 1% (capped at $4,000/year) | 1% (no cap) |
| Travel rewards | None | 1% on hotels, flights, etc. |
| Foreign transaction fees | 0% | 0% |
| Annual fee | $0 | $0 |
Choose the Costco Anywhere card if you shop at Costco but also use your card at other stores, restaurants, or online retailers. You earn 1% everywhere, which is better than nothing, and you get the full Visa network.
Choose the Costco Visa card if you do almost all your shopping at Costco and want to maximize rewards there. The higher gas cash back (no annual cap) and travel rewards make it better if you fill up frequently or book hotels and flights. The trade-off is that you cannot use it outside Costco, so you will need a second card for other purchases.
How to open a Costco card and what to expect
You can open a card in person at any Costco warehouse or online through Citi's website. In-warehouse applications are usually faster — you can walk out with a temporary card number the same day. Online applications take a few days to process.
You will need your Social Security number, date of birth, and current address. Citi will pull your credit report and make a decision within minutes if you explore in person, or within a few business days online. Approval is not may provide; Citi looks at your credit score, payment history, and income.
If you are approved, your physical card arrives in the mail within 7 to 10 business days. You can use the temporary card number when ready at Costco and online. Your Costco Cash certificates will start posting once you have made purchases and the quarter ends.
Frequently Asked Questions
Can I use the Costco card if I do not have a Costco membership?
No. You must have an active membership to open the card and to keep it open. If your membership expires, the card closes automatically. The membership and the card are linked.
What happens to my Costco Cash if I do not spend it before it expires?
It expires two years after the issue date and cannot be recovered. Citi does not convert it to cash or roll it over. Mark the expiration date on your certificate or check your account online so you do not lose it.
Does the card work at Costco gas stations?
Yes. Both cards earn cash back on gas purchases. The Costco Anywhere card earns 1% (capped at $4,000 per year), and the Costco Visa card earns 1% with no cap. You can use either card at any Costco gas pump.
Can I use the Costco card to pay my membership fee?
Yes. You can pay your annual membership renewal with the card and earn cash back on it. This is a small but real benefit — a $65 membership purchase earns $1.30 in cash back on the Costco Anywhere card.
What if I get denied for the card?
Citi will tell you the reason — usually a low credit score, recent late payments, or high existing debt. You can reapply after improving your credit, or you can use a regular Visa or Mastercard at Costco (you just will not earn the Costco rewards). Some people open the card later once their credit improves.