5 credit cards that can help you save even more at Costco, no matter what you buy
- Costco is considered the mecca of savings for shoppers, but there are ways to reap even more discounts and benefits from using the right credit cards.
- The Costco Anywhere® Visa Card by Citi is an obvious choice for any regular Costco shopper, but more flexible cards including the Chase Freedom Unlimited and the Capital One® Venture® Rewards Credit Card can help you earn bonus rewards, too.
- The Chase Freedom card, for instance, offers 5% back on rotating quarterly categories once you activate - and one of those categories is big-box stores like Costco.
- Read more personal finance coverage.
When you need a really good deal on everyday grocery items like bulk frozen food, a massive bag of baby spinach, and almond milk, or larger purchases like car tires, a 600-bottle wine cellar, or funeral caskets, Costco is the place to go.
You can even fill up your gas tank on the way out at prices ten to twenty cents lower per gallon than nearby stations, or take a $1.50 jumbo hot-dog and soda combo to go.
And if you bill yourself as a conscious consumer, on a lot of levels, this can all be enjoyed relatively guilt-free. Costco is oft-cited as one of the world's most ethical companies due to the way it value its employees. According to Glassdoor, the average cashier salary at Costco is $14 per hour, a pretty significant step up from the national average cashier salary of $11 per hour estimated by Salary.com. In June of 2019, the company raised its starting wage for employees to $14.50 per hour.
Costco is the mecca of savings, and just by shopping there, you're taking a huge cut out of your expenses. But with the right credit cards, there are ways to save even more.
Keep in mind that we're focusing on the rewards and perks that make these credit cards great options, not things like interest rates and late fees, which will far outweigh the value of any points or miles. It's important to practice financial discipline when using credit cards by paying your balances in full each month, making payments on time, and only spending what you can afford to pay back.
The Costco Anywhere Visa
In 2016, Costco terminated its decade and a half long relationship with American Express, and now only accepts cards in the Visa credit network.
Citi is the exclusive issuer of the Costco Anywhere Visa, which has no annual fee if you have a Costco membership. If you frequently shop at Costco, it could be a good option for maximizing your spending at the store.
The Costco Anywhere Visa by Citi offers:
- 4% cash back on gas, up to $7,000 per year, then 1%
- 3% cash back on eligible travel purchases
- 3% cash back on restaurants
- 2% cash back on all Costco purchases, 1% cash back on all purchases everywhere else
There's also the Costco Anywhere Visa® Business Card by Citi, which offers the same cash-back categories and largely the same benefits.
Other credit cards to use Costco
Costco will now only accept Visa credit cards at its stores, but that doesn't mean you're limited to using the Costco Anywhere Visa. Here are a few other cards to have handy in your wallet every time you make your Costco run:
Chase Freedom
For Costco members who are less religious about shopping at the savings mecca, the Chase Freedom might be a more cost-effective credit card to use there. With no annual fee, it offers a $150 cash bonus for spending just $500 in the first three months of opening the account.
Plus, you can earn 5% cash back (on up to $1,500) on purchases in categories that rotate every quarter once you activate (including a category for wholesale clubs such as Costco).
Click here to learn more about the Chase Freedom.
Chase Freedom Unlimited
The Chase Freedom Unlimited earns 1.5% cash back on all purchases, with a sign-up bonus of $150 after you spend $500 in the first three months and no annual fee.
If you have a Chase card that earns Ultimate Reward points, such as the Chase Sapphire Preferred Card or the Chase Sapphire Reserve, the points you earn here will be even more valuable. If you have one of these Ultimate Rewards-earning cards, you can earn Chase points with the Freedom Unlimited - you just have to move your cash-back rewards over to your Ultimate Rewards account, and then you can redeem them as points for travel.
Click here to learn more about the Chase Freedom Unlimited.
Capital One Venture Rewards Credit Card
If you spend $3,000 on the Capital One Venture in the first three months of opening the card, you'll be gifted with 50,000 Capital One Venture miles, about the equivalent of $500 for travel. This is a great card to use at Costco because you earn 2 miles per every dollar spent, anywhere.
If you do a lot of shopping at Costco, it would be easy to meet the minimum spending requirements to earn the sign-up bonus. And to redeem the miles, you can just purchase travel-related items like airfare or hotel rooms on your card, and then apply your miles toward those specific purchases after they've posted - effectively erasing the expenses.
Click here to learn more about the Capital One Venture card.
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