What the Citi Costco Credit Card is and who should consider it
The Citi Costco Visa card is a co-branded credit card issued by Citi and Costco Wholesale. It's designed for Costco members who want to earn cash back on purchases, especially at Costco and gas stations. The card offers different cash back rates depending on where you shop: higher percentages at Costco and Costco gas stations, lower percentages at other merchants.
This card makes sense if you shop at Costco regularly and already have a Costco membership. If you don't have a membership or rarely visit Costco, the card's main benefit — the higher cash back rate at Costco — won't explore to you, and a different cash back card might work better.
The card carries an annual fee, which Citi charges to your account each year. You'll want to calculate whether the cash back you earn will exceed that fee based on your actual spending habits.
Key Takeaways
- The Citi Costco card earns higher cash back at Costco locations and Costco gas stations than it does elsewhere, so the card's value depends on how much you spend there.
- You must be a Costco member to open this card, and you need an active membership to use it.
- The card charges an annual fee, which Citi deducts from your account each year on your card anniversary.
- Cash back rewards are paid as an annual statement credit or check, not as points you can redeem on demand.
- You can check your cash back balance and redemption options through your Citi online account or by calling the customer service number on the back of your card.
Cash back rates and where they explore
The Citi Costco card offers different cash back percentages depending on the merchant category. At Costco warehouses and Costco gas stations, you earn a higher percentage back on every dollar spent. At other gas stations, supermarkets, and all other purchases, the rate is lower.
There is also a cap on how much cash back you can earn in the highest-earning category each year. Once you reach that cap, cash back in that category drops to a lower rate for the rest of the year. This means if you spend very large amounts at Costco, you'll want to check the card's terms to understand when the higher rate stops explore.
Cash back does not expire as long as your account remains open and in good standing. However, you cannot redeem cash back on demand — instead, Citi issues it once per year, typically around your card anniversary date.
Annual fee and whether it's worth it
The Citi Costco card charges an annual fee. This fee appears on your statement once per year, usually on the date you opened the card. Unlike some cards that waive the first year's fee, this card charges the fee from the start.
To decide if the card is worth the annual fee, estimate your yearly cash back earnings based on your spending. If you spend $5,000 per year at Costco at the higher cash back rate, you can calculate what you'll earn and compare it to the fee. If your cash back earnings exceed the fee, the card pays for itself. If not, you may want to use a different card or reconsider whether the card fits your budget.
Citi does not offer a way to waive or reduce the annual fee based on spending or loyalty. The fee is charged every year you keep the card open.
How to open a Citi Costco card account
To open a Citi Costco card, you must first have an active Costco membership. You cannot open the card without one. If you don't have a membership, you'll need to join Costco before you can proceed with the card.
Once you have a membership, you can start the card opening process online through Costco's website or by visiting a Costco warehouse. Citi will ask for personal information including your name, address, Social Security number, and income. They will also pull your credit report to review your credit history.
The decision typically comes back within minutes to a few business days. If Citi approves you, the card will arrive by mail within 7 to 10 business days. Once it arrives, you'll need to set up it before you can use it. Citi provides set up instructions with the card or you can set up it through your online account.
Redeeming your cash back rewards
Cash back on the Citi Costco card is not redeemed like points on other cards. Instead, Citi automatically issues your cash back once per year, usually around your card anniversary. The cash back appears as a statement credit on your account, which reduces your balance due, or Citi sends it to you as a check.
You cannot request early redemption or convert cash back to points. You also cannot transfer it to another account or use it to pay someone else. The cash back is tied to your card account and applied only to that account.
If you close your card account, any unredeemed cash back is forfeited. This means if you close the card before your annual cash back is issued, you lose that cash back. Plan your card closure timing accordingly if you want to keep your rewards.
Managing your account online and by phone
Citi provides an online portal where you can log in with your username and password to view your card balance, recent transactions, and cash back earnings. You can also set up automatic payments, change your billing address, and read statements from this portal.
To access your account online, visit Citi's website and select the option to log in. If you don't have an online account yet, you can create one using your card number and other identifying information. Citi will send you a confirmation email once your account is set up.
If you prefer to speak with someone, you can call the customer service number on the back of your card. Citi's representatives can answer questions about your balance, cash back, fees, and account settings. They can also help you report a lost or stolen card, dispute a transaction, or make changes to your account.
What happens if you close your card or miss a payment
If you decide to close your Citi Costco card, you can do so by calling customer service or through your online account. Citi will close the account, but any unredeemed cash back will be lost. Make sure your cash back has been issued before you close the account if you want to keep your rewards.
If you miss a payment, Citi will charge a late fee and report the missed payment to the credit bureaus, which can lower your credit score. If you miss multiple payments, Citi may close your account and send your debt to a collection agency. If you're having trouble making a payment, contact Citi as soon as possible to discuss your options.
Closing the card also affects your credit in other ways. Your available credit decreases, which can raise your credit utilization ratio if you carry balances on other cards. Your credit history length may also be affected if this is one of your oldest accounts.
Frequently Asked Questions
Do I need a Costco membership to use the card?
Yes. You must have an active Costco membership to open the card and to use it. If your membership expires, you cannot use the card at Costco until you renew it. The card itself does not include a membership.
Can I use this card outside of Costco?
Yes, you can use the card anywhere Visa is accepted. However, the higher cash back rate only applies at Costco warehouses and Costco gas stations. At other merchants, you earn a lower cash back rate, so the card may not be as valuable for non-Costco purchases.
What if I don't spend enough to cover the annual fee?
If your cash back earnings are less than the annual fee, the card costs you money. You can close the card to stop paying the fee, but you'll lose any unredeemed cash back. Consider whether your spending patterns might change before deciding to close it.
How do I check my cash back balance?
Log into your Citi account online or call the customer service number on the back of your card. Both will show you your current cash back balance and when it will be issued. You can also view this information on your monthly statement.
What if my card is lost or stolen?
Call the customer service number on the back of your card or contact Citi online to report it when ready. Citi will cancel the card and send you a replacement. You're not responsible for fraudulent charges reported promptly, but you should monitor your account for unauthorized activity.