The Costco credit card makes sense only if you spend enough to recoup the membership fee through rewards

The Costco Anywhere Visa Card by Citi offers cash back on purchases, but whether it's worth carrying depends on your actual spending and how you compare it to other cards. The card itself is free — there's no annual fee — but you need a Costco membership to use it, and that membership costs money. If you don't already have a membership, the card won't save you money. If you do, the question becomes whether the rewards you earn exceed what you'd earn with a different card.

The card returns 2% cash back on Costco purchases and gas, 1% on everything else. Those percentages are fixed; Costco doesn't rotate categories or offer bonus categories the way some other cards do. That simplicity is useful if you want to know exactly what you'll earn without tracking quarterly categories or set up steps.

Key Takeaways

  • The Costco Anywhere Visa Card is free to own, but you must pay for a Costco membership to use it, so the card only saves money if your rewards exceed your membership cost.
  • The card returns 2% on Costco and gas purchases and 1% on everything else, with no bonus categories or rotating rewards to track.
  • You need to spend roughly $1,200 to $1,500 per year at Costco to earn back a basic membership fee through the 2% cash back alone.
  • The card's main advantage over a general cash-back card is the 2% rate at Costco; outside Costco, other cards often offer higher rewards on groceries or gas.
  • Cash back posts as an annual Costco Shop Card that you can only spend at Costco, not as money in your bank account.

How much you need to spend to break even

A Gold Star membership at Costco costs $65 per year. To earn $65 in cash back from the card alone, you need to spend roughly $3,250 at Costco in a year — because 2% of $3,250 is $65. That's about $270 per month. If your household spends less than that at Costco, the card will not pay for itself.

Many households do spend that much. A family buying groceries, household supplies, and gas at Costco can easily hit $3,250 annually. But if you shop at Costco only occasionally or buy mostly items that don't benefit from bulk pricing, you may not reach that threshold. The only way to know is to look at your own Costco receipts from the past year and add them up.

If you have a household member with a Costco membership but you don't, you cannot use the Costco credit card. The card is tied to the membership account, and only the primary member and their household card holder can use it.

Where the card earns less than alternatives

Outside of Costco, the card returns only 1% cash back on all other purchases. Many other credit cards return 1.5% to 2% on all purchases with no annual membership required. If you use the Costco card for groceries at other stores, gas at non-Costco pumps, or everyday purchases, you're earning less than you would with a flat-rate card.

Some cards offer 3% to 4% cash back on groceries or gas, which beats the Costco card's 2% on those categories outside Costco. If you have a card that earns 3% on groceries, using the Costco card at a non-Costco grocery store would cost you 2 percentage points of rewards per dollar spent.

The card makes financial sense only if you do most of your grocery and gas shopping at Costco. If you split your shopping between Costco and other stores, or if you buy gas elsewhere, you may earn more with a different card.

How cash back works and when you receive it

Cash back from the Costco Anywhere Visa Card does not go into your bank account. Instead, Costco issues it as a Shop Card — a certificate you can spend only at Costco — once per year, usually in January. You cannot convert it to cash or transfer it to another account.

This matters if you want flexibility. If you earn $200 in cash back but you don't plan to shop at Costco in the next month, that money sits unused. Shop Cards do not expire, so you can use it later, but you cannot spend it anywhere else. Some people see this as a feature because it forces them to use their rewards; others see it as a limitation because it locks the money into Costco.

The card also earns 2% cash back on gas purchases at any gas station, not just Costco. That cash back also posts as a Shop Card once per year.

Comparing the Costco card to other warehouse cards

Sam's Club offers a credit card with similar rewards: 2% at Sam's Club and gas, 1% elsewhere. The card is also free, but you need a Sam's Club membership. The math is identical — you need to spend enough to cover the membership fee through rewards.

If you're choosing between Costco and Sam's Club based on the credit card alone, the decision should rest on which warehouse you actually shop at and how much you spend there, not on the card itself. The cards are structurally the same.

For shoppers who don't have a warehouse membership, a general 1.5% or 2% cash-back card from a bank (with no membership requirement) will earn more outside the warehouse and the same or more inside a regular grocery store.

When the Costco card makes the most sense

The card is worth carrying if you already have a Costco membership and you spend at least $1,200 to $1,500 per year at Costco. At that spending level, the 2% cash back begins to offset the membership cost. The higher your Costco spending, the more the card saves you.

The card also makes sense if you buy gas at Costco regularly. Costco gas is often cheaper than other stations, and the 2% cash back on top of that discount compounds the savings. If you fill up at Costco weekly, the gas rewards alone can add up to $50 to $100 per year.

The card is less useful if you shop at Costco only a few times per year, if you buy mostly items that don't benefit from bulk pricing, or if you do most of your grocery shopping elsewhere. In those cases, a general cash-back card will likely earn you more.

What to watch for before you explore

The Costco Anywhere Visa Card is a Visa, which means it's accepted everywhere Visa is accepted — not just at Costco. However, the 2% cash back applies only to Costco and gas purchases. You won't earn extra rewards for using it at restaurants, pharmacies, or other merchants, even though the card works there.

The card does not have a sign-up bonus. Some credit cards offer a cash-back bonus for new cardholders who spend a certain amount in the first few months. The Costco card does not. Your rewards begin at the standard 2% and 1% rates from the first purchase.

If you already have a Costco membership but no Costco credit card, opening one takes a few minutes. You can explore in person at Costco or online through Citi's website. The approval decision is usually when ready or within a few days.

Frequently Asked Questions

Can I use the Costco credit card if I don't have a membership?

No. The card is tied to your Costco membership account. You must have an active membership to open or use the card. If your membership lapses, you can still use the card at Costco, but you won't be able to renew it or open a new one without a current membership.

Do I have to use the Costco card at Costco, or can I use a different card?

You can use any Visa card at Costco, including the Costco card or a card from another bank. Using a different card means you won't earn the 2% cash back, but you can still shop. Some people use a different card to earn higher rewards on groceries or to meet a sign-up bonus.

What happens to my cash back if I don't spend it?

Your cash back posts as a Shop Card once per year, usually in January. The Shop Card does not expire, so you can use it whenever you want. However, you can only spend it at Costco, not at other stores or online.

Is the 2% cash back better than other credit cards?

At Costco, yes — most other cards return 1% or less. Outside Costco, no — many cards return 1.5% to 2% on all purchases, and some return 3% to 4% on groceries or gas. The Costco card's advantage is specific to Costco and Costco gas stations.

Can I get the Costco card without paying for a membership?

No. The membership fee is separate from the card fee. The card itself is free to own, but you must pay for a Costco membership to use it. If you don't have a membership, the card won't save you money.