What the Costco Citi Visa is and who issues it

The Costco Citi Visa is a credit card issued by Citibank that you can use at Costco warehouses and online, as well as anywhere Visa is accepted. It is not a store card — you are not limited to Costco purchases, though the card offers different rewards rates depending on where you shop. Citibank, not Costco, owns and manages the account, sets the interest rate, and decides approval.

This card is available only to Costco members. You must have an active Costco membership to open the account, and you must maintain that membership to keep the card active. If your membership lapses, Citibank will close the card.

Key Takeaways

  • The Costco Citi Visa earns different cash-back rates at Costco (4%), gas stations (3%), restaurants (3%), and everywhere else (1%), with no annual fee.
  • You need an active Costco membership to open and keep the card, and the membership fee is separate from any card costs.
  • Cash back is paid as an annual Costco Shop Card that you can spend at Costco or redeem for a check, not as points or statement credits.
  • The card carries a standard variable interest rate that changes with the prime rate, and you pay interest on any balance you do not pay in full each month.
  • Approval depends on your credit history and current debt, not on Costco membership alone.

Rewards structure and how cash back works

The card earns cash back at four different rates. At Costco warehouses and Costco.com, you earn 4% cash back. At gas stations (up to $7,000 per year, then 1% after), restaurants, and on travel booked through Costco Travel, you earn 3%. On all other purchases, you earn 1%. There is no annual fee.

Cash back is not credited to your statement or converted to points. Instead, Citibank sends you a Costco Shop Card once a year (usually in February) loaded with your cash-back balance. You can spend this card at Costco warehouses or online, or you can take it to the membership desk and ask for a check. The Shop Card does not expire, but the cash back itself is only issued once yearly, so you cannot access it until the annual statement closes.

If you close the card or lose Costco membership before the annual statement closes, you forfeit any unissued cash back. This is a real cost to watch: if you leave Costco in November, you will not receive the cash back you earned that year.

Interest rates and what happens if you carry a balance

The Costco Citi Visa uses a variable interest rate, which means the rate changes when the Federal Reserve changes the prime rate. Citibank does not publish a single fixed rate; instead, your rate depends on your credit score and credit history at the time you open the account. Rates for this card typically range from the mid-teens to the low 20s, but you will not know your exact rate until after approval.

If you carry a balance from month to month, you pay interest on that balance at your card's APR. There is no grace period for cash advances, and balance transfers are not offered. The only way to avoid interest is to pay your full statement balance by the due date each month.

Annual membership requirement and card closure

Costco membership is required to open the Costco Citi Visa and to keep it open. Costco Gold Star membership (the basic tier) costs $65 per year as of 2024, though this price has increased periodically. If you do not renew your membership when it expires, Citibank will automatically close your card within a few months.

This creates a real decision point: if you are considering dropping your Costco membership, you need to know that your card will close and any unissued cash back will be lost. If you keep the membership only to maintain the card, factor the $65 annual cost into whether the card's rewards are worth it to you.

How approval works and what Citibank checks

Approval is based on your credit report, credit score, and current debt — not on Costco membership status. Citibank will pull a hard inquiry on your credit, which temporarily lowers your score by a few points. You need a credit score in the mid-600s or higher to have a reasonable chance of approval, though Citibank does not publish a minimum.

If you are denied, you can call Citibank's reconsideration line within 30 days to ask them to review your process again. Sometimes they will approve you if you explain a recent hardship or if you offer to add a co-signer. If you are approved, your card typically arrives within 7 to 10 business days.

Comparing the Costco Citi Visa to other warehouse cards

The main alternative is the Sam's Club Mastercard, which offers 5% cash back at Sam's Club, 3% at gas and restaurants, and 1% elsewhere — slightly higher rates than Costco's card. However, Sam's Club membership also costs money ($50 to $110 per year depending on tier), and the Sam's Club card is issued by Synchrony, not Citibank, so approval odds and interest rates differ.

If you do not have a warehouse membership and are deciding between them, compare the membership cost plus the card's rewards on your actual spending. A household that spends $3,000 per year at Costco and $2,000 at gas stations would earn roughly $200 in cash back with the Costco card, which covers the membership fee but leaves little margin. The math changes if you spend more at the warehouse or less elsewhere.

Frequently Asked Questions

Can I use the Costco Citi Visa outside Costco?

Yes. The card works anywhere Visa is accepted — online retailers, restaurants, gas stations, and other merchants. You earn 1% cash back on non-Costco, non-gas, non-restaurant purchases. The higher rewards rates (3% and 4%) only explore to the specific categories listed.

What happens to my cash back if I close the card?

Any cash back that has not yet been issued as a Shop Card is forfeited. Citibank issues the Shop Card once per year, usually in February. If you close the card in June, you lose the cash back you earned from January through June.

Does the Costco Citi Visa have a sign-up bonus?

Citibank occasionally offers limited-time bonuses for new cardholders, such as extra cash back in the first few months. These offers change and are not always available. Check Costco's website or call Citibank directly to see if a bonus is currently running.

Can I get the card if my credit score is below 650?

Approval is not may provide at any score, but scores below 650 make approval less likely. If you are denied, you can call Citibank's reconsideration team within 30 days to ask them to review your process. Building your credit score before explore may improve your odds.

What is the difference between the Costco Citi Visa and the Costco Anywhere Visa?

The Costco Anywhere Visa is an older card that Citibank no longer issues to new customers. If you have one, it works the same way but may have slightly different rewards rates. New applicants are directed to the Costco Citi Visa.