[Update: Some offers mentioned below have expired. You can view the current offers from our partners here — Costco Anywhere Visa Card and Chase Freedom. Disclosure: Cards from our partners are mentioned below.]
As of Monday, the Costco Anywhere Visa Card and Costco Anywhere Visa Business Card, both issued by Citi, replaced the TrueEarnings Card from Costco and American Express as the retailer’s rewards credit cards. Replacement cards have been sent to existing TrueEarnings cardholders since May, but prospective customers can now apply for the new Citi cards online. (Full Disclosure: Citibank, American Express, Bank of America and Chase advertise on Credit.com, but that results in no preferential editorial treatment.)
Here’s what you should know if you want to apply.
The Fine Print
Citi’s personal and business Costco credit cards allow cardholders to earn 4% cash back on gas worldwide for the first $7,000 spent, then 1% thereafter; 3% cash back on restaurant and travel purchases worldwide; and 2% cash back on all purchases made at Costco in store and online. Cardholders will also receive 1% cash back on all other purchases, with no limits on earning potential.
Both Citi cards will also double as a Costco membership card. They don’t technically carry an annual fee, but you need to be a Costco member, which starts at $55 annually.
Both versions of the card feature a 0% introductory purchase annual percentage rate (APR) for the first seven months after account opening, after which the variable purchase APR becomes 15.49%. Late payment fees will cost up to $37.
The cards also provide the following benefits:
- Extended warranty
- Worldwide car rental insurance
- Worldwide travel accident insurance
- Damage and theft protection
- Trip cancellation protection
Since Visa took over Costco’s network, other credit cards now work at the bulk retailer. As of June 1, BankAmericard Cash Rewards cardholders can earn 2% cash back at wholesale clubs plus 3% cash back on gas, 2% cash back on groceries and 1% cash back on all other purchases. Just last week, Chase announced that its Freedom credit card will offer the 5% cash back category of Wholesale Clubs through the end of the year. (Freedom cardholders — who can read a full review of the card here — can earn up to 5% cash back on up to $1,500 spent in revolving bonus categories each quarter.)
It’s important to read the terms and conditions to be sure a particular credit card is right for you. It’s also a good idea to check your credit score to see where you stand financially, as this may affect whether or not you can qualify. You can view two of your credit scores, updated each month, for free on Credit.com.
At publishing time, the Costco Anywhere Visa Card, BankAmericard Cash Rewards and Chase Freedom credit card as well as American Express products are offered through Credit.com product pages, and Credit.com is compensated if our users apply and ultimately sign up for these cards. However, this relationship does not result in any preferential editorial treatment.
Note: It’s important to remember that interest rates, fees and terms for credit cards, loans and other financial products frequently change. As a result, rates, fees and terms for credit cards, loans and other financial products cited in these articles may have changed since the date of publication. Please be sure to verify current rates, fees and terms with credit card issuers, banks or other financial institutions directly.
[Editor’s note: This post was updated to reflect the starting price of Costco memberships.]
More on Credit Cards:
- Credit.com’s Expert Credit Card Shopping Tips
- How to Get a Credit Card With Bad Credit
- An Expert Guide to Credit Cards With Rewards
Image: Yvan DubA