Is the Costco Credit Card Worth It? Read This First
By Bryce Casson, Founder · Cardocrat · Updated June 2026
The short answer: The Costco Anywhere Visa earns good rates, 4 percent on gas and 3 percent on dining and travel, but it pays them as a single annual Costco Cash Reward certificate you can redeem only at Costco, only once a year, and only if you keep a paid membership. The earning is fine; the locked, delayed, membership-gated rewards are the problem.
Good earning, trapped rewards
The Costco Anywhere Visa from Citi has no annual fee and earns 4 percent on gas up to a yearly cap, 3 percent on restaurants and travel, 2 percent at Costco, and 1 percent elsewhere, which are genuinely competitive rates. The catch is redemption: your rewards accrue all year and arrive as one Costco Cash Reward certificate in February, redeemable only at Costco for merchandise or cash at the register. You cannot use them month to month, cannot spend them anywhere but Costco, and forfeit them if you drop your Costco membership or close the card. See best warehouse-club cards.
The membership and lock-in problem
The card is useless without a paid Costco membership, so the rewards are gated behind an annual fee you pay to Costco. Combined with the once-a-year payout and Costco-only redemption, your cash back is locked inside one retailer ecosystem and tied up for up to a year. A flat 2 percent cash card pays you every month in cash you can spend anywhere, including at Costco, with no membership required to keep the rewards. See are store cards worth it.
Who it actually suits
The Costco card makes sense only if you are a committed Costco member who buys a lot of gas and dining, will hold the membership indefinitely, and does not mind a single annual Costco-only payout. For everyone else, a flexible cash or transferable-points card earns comparably and pays in money you control. See cash back vs travel rewards and co-brand vs flexible cards.
Frequently asked questions
Is the Costco credit card worth it?
Only for committed Costco members who buy lots of gas and dining and will keep the membership. It earns good rates but pays them as a once-a-year, Costco-only certificate, so a flexible cash card often wins for everyone else.
How do Costco Anywhere Visa rewards work?
Rewards accrue all year and arrive as a single Costco Cash Reward certificate in February, redeemable only at Costco for merchandise or cash at the register. You cannot use them monthly or anywhere but Costco.
Do I need a Costco membership for the card?
Yes. The Costco Anywhere Visa requires a paid Costco membership, and you forfeit your rewards if you drop the membership or close the card, so the cash back is gated behind a fee you pay to Costco.
What is a better alternative to the Costco card?
A flat 2 percent cash-back card or a transferable-points card. They earn comparable value, pay you every month in flexible rewards you can spend anywhere including at Costco, and do not require a membership to keep.
Bryce Casson, Founder of Cardocrat. Every card is ranked by what it actually returns, with all points valued at a flat 1 cent and offers verified against issuer sources. About the author.
