Are you a Costco enthusiast looking to maximize your savings and enjoy more perks while shopping at your favorite warehouse club? Look no further! In this article, we will dive into the best credit cards for Costco shoppers, providing you with the tools you need to save money and make the most of your Costco experience.
Best Credit Cards For Costco Table of Contents
Why Use Credit Cards for Costco Shopping?
Using the right credit card for your Costco purchases is essential for several reasons. Firstly, you earn rewards for spending in the form of cashback, points, or miles that can be redeemed for other expenses or benefits. Secondly, credit cards often offer additional perks, such as extended warranties on purchases, price protection, and exclusive access to sales and events. In this guide, we'll uncover the top credit cards for Costco to help you choose the best one for your needs.
Citi Costco Anywhere Visa Card
- 4% cashback on eligible gas worldwide, including Costco (up to $7,000 per year, then 1% after that)
- 3% cashback on restaurants and eligible travel purchases
- 2% cashback on all other purchases from Costco and Costco.com
- 1% cashback on all other purchases
- No foreign transaction fees
- $0 annual fee with your paid Costco membership
This card is the ultimate choice for Costco devotees, offering substantial cashback rewards not only for shopping at Costco but also for dining, travel, and gas expenses. It is important to note that this card does require a Costco membership.
Chase Freedom Flex
- 5% cashback on up to $1,500 in combined purchases in bonus categories each quarter you activate
- 5% cashback on travel purchased through Chase Ultimate Rewards
- 3% cashback on dining and drugstore purchases
- 1% cashback on all other purchases
- $0 annual fee
While not specifically designed for Costco shoppers, the Chase Freedom Flex card can be a fantastic option if Costco happens to be included in one of their rotating 5% cashback categories. Just be sure to activate the bonus category each quarter to enjoy the benefits.
Fidelity Rewards Visa Signature Card
- 2% cashback on all purchases (must have a qualifying Fidelity account)
- No annual fee
- No foreign transaction fees
- Flexible redemption options via Fidelity accounts - can be used for investing, saving, or spending
The Fidelity Rewards Visa Signature Card may not offer as many perks as other cards, but its straightforward 2% cashback on all purchases makes it an excellent choice for Costco shoppers looking for simplicity.
Best Credit Cards For Costco Example:
Imagine you are a regular Costco shopper who spends $1,000 at the store each month and prefers to use cashback cards. Your expenses at restaurants, gas stations, and traveling also add up to $2,000 each month. Here's how your earnings would look with the Citi Costco Anywhere Visa Card:
2% cashback at Costco: $1,000 x 0.02 = $20/month
4% cashback on gas: $200 x 0.04 = $8/month
3% cashback on dining and travel: $1,800 x 0.03 = $54/month
Your total cashback per month would be $82 or $984 per year. That's a significant amount of savings that can go back into your pocket or be reinvested in other financial goals.
Now that you know the best credit cards for Costco shopping, it's time to choose the one that suits your spending habits and financial goals. Having the right card can help you maximize your savings and take full advantage of Costco's money-saving potential. Be sure to share this in-depth guide with fellow Costco fans and check out the rest of Flik Eco's informative content to make informed financial decisions.
