You’re standing in that massive checkout line. You’ve got a rotisserie chicken, a 24-pack of paper towels, and maybe a kayak you didn’t know you needed. Then the cashier asks: "Do you want to pay with your Costco Citi bank credit card today?" It’s a question thousands of people face every week, and honestly, the answer isn't always a simple "yes."
Most people think of this card—formally known as the Costco Anywhere Visa® Card by Citi—as just another piece of plastic in their wallet. But if you're a hardcore bulk-buyer, it’s basically a tool for hacking your annual membership costs.
Wait.
Before you sign up, you should know that it isn't perfect. There are some weird quirks about how you get your money back that might drive you crazy.
What the Costco Citi Bank Credit Card Really Offers
Let’s get into the weeds. This card is a beast for certain types of spending, but it's mediocre for others. The standout feature? Gas. You get 4% cash back on eligible gas and EV charging for the first $7,000 per year (then 1% after). If you commute or drive a gas-guzzling SUV, that's huge.
Then you have the 3% back on restaurants and eligible travel. This is where Citi gets clever. It’s not just "Costco travel." It’s almost any travel. Airfare, hotels, car rentals, cruise lines—they all count. If you're out to dinner with friends, you're racking up 3% while everyone else is probably getting 1%.
But here is the catch.
When you're actually at Costco, you only get 2% cash back.
It sounds backwards, right? You’d think the Costco Citi bank credit card would give you the most rewards at its own store. But no. 2% is what you get for Costco and Costco.com purchases. It’s still better than the standard 1% you get on everything else, but it's not the "holy grail" of grocery rewards some people claim it is.
✨ Don't miss: How to Sign Someone Up for Scientology: What Actually Happens and What You Need to Know
The Weird Reward Distribution
This is the part that usually catches people off guard. Most credit cards let you redeem your cash back every month. You click a button, and boom—your statement balance drops.
Not here.
With the Costco Citi bank credit card, you get your rewards once a year. Just once. It comes as a credit certificate in your February billing statement. You then have to take that certificate to a physical Costco warehouse to get your cash or use it for merchandise. If you close your account before that February statement hits, you lose everything. You’ve been warned. It’s a total "loyalty play" by Costco to keep you coming back.
Is the Executive Membership Double-Dip Real?
A lot of people ask if they should pair this card with the Costco Executive Membership. The short answer: Probably, if you spend a lot.
The Executive Membership gives you 2% back on most Costco purchases (up to $1,000 back per year). If you also use your Costco Citi bank credit card, you’re effectively getting 4% back on your Costco runs. 2% from the membership, 2% from the card.
Mathematically, it works like this:
If you spend $250 a month at Costco, you’re hitting the break-even point for the Executive upgrade. Anything over that is pure profit. When you add the Citi card on top, you're essentially getting your membership paid for by the rewards. It's a closed loop.
What You Don't Get 4% On
People get excited about the gas rewards and forget the fine print. You don't get the 4% at grocery stores that happen to have gas stations, like Kroger or Publix. You don't get it at superstores like Walmart or Target. It has to be a "stand-alone" gas station or a Costco station.
Same goes for the 3% travel. If you’re booking a "vacation rental" through a random site that isn't coded as a travel agency, you might get stuck with 1%.
🔗 Read more: Wire brush for cleaning: What most people get wrong about choosing the right bristles
The No-Annual-Fee Illusion
The marketing says there is "no annual fee" for the Costco Citi bank credit card. This is technically true, but also kinda misleading.
You must have a paid Costco membership to have the card.
So, while Citi isn't charging you $95 a year, Costco is charging you $65 (for Gold Star) or $130 (for Executive). If you ever cancel your Costco membership, Citi will cancel your credit card. This can hurt your credit score because it lowers your total available credit and reduces the "age" of your accounts.
Think of it as a "subscription-based credit card."
How It Compares to Other "Big Box" Cards
If you shop at Amazon, their card gives you 5% back. If you shop at Target, the RedCard (now Target Circle Card) gives you 5% off at the register.
Compared to those, the 2% you get from the Costco Citi bank credit card on internal purchases feels a bit stingy.
However, Costco’s card wins on versatility. You can use it anywhere Visa is accepted. The Amazon card is great, but its high-yield rewards are mostly trapped in the Amazon ecosystem. The Citi card is a better "everything" card for people who don't want a wallet full of 10 different pieces of plastic.
Insurance and Protections (The Sad Part)
A few years ago, this card was legendary for its extended warranty protection. If you bought a TV at Costco with your Citi card, you got years of extra coverage.
💡 You might also like: Images of Thanksgiving Holiday: What Most People Get Wrong
Citi stripped most of those benefits away.
Today, you still get some basic protections, like Damage and Theft Purchase Protection and Worldwide Car Rental Insurance (which is secondary in the U.S.), but the "glory days" of the double-extended warranty are over. It’s a bummer, especially since Costco is such a big destination for electronics.
The Strategy for Maximum Returns
To really win with the Costco Citi bank credit card, you have to be disciplined. Since the rewards only come once a year, you shouldn't treat it as "spending money."
- Use it for every drop of gas. 4% is hard to beat anywhere else.
- Use it for travel bookings. 3% back on a $3,000 vacation is $90. That pays for your membership right there.
- Don't use it for everything else. If you have a card that gives 1.5% or 2% on all purchases (like the Wells Fargo Active Cash or Citi Double Cash), use those for your non-Costco, non-gas, non-restaurant spending.
- Pay it off every month. The interest rates on store-branded cards are notoriously high. If you carry a balance, the 2% or 4% cash back is completely wiped out by the 20%+ APR.
Who Should Skip This Card?
Honestly, if you only visit Costco once every three months to buy a giant jar of pickles and some socks, skip it. The headache of managing a separate credit line and the once-a-year reward payout isn't worth it.
Also, if you are planning to move to an area without a Costco, stay away. Closing the card when you cancel your membership is a forced move that can annoyingly dip your credit score.
But for the "Costco Family"—the ones who do the bulk of their grocery shopping there and fill up their tank at the warehouse station every Sunday—the Costco Citi bank credit card is basically a mandatory tool. It turns an expense (membership) into a profit center.
Actionable Next Steps
If you’re considering the move, here is how to handle it:
- Check your "Gas" spend first. Look at your bank statements from the last three months. If you’re spending $300+ a month on fuel, the 4% back on this card will net you $144 a year just on gas.
- Evaluate your "Dining" habits. 3% back on restaurants and bars adds up fast. Most "grocery" cards exclude dining; this one embraces it.
- Review your credit score. Citi usually looks for "Good to Excellent" credit (typically 700+). Don't apply if you’re in a rebuilding phase, as a hard inquiry for a rejection is just wasted effort.
- Time your application. If you can, apply right before a big purchase (like a set of tires or a new appliance). While there usually isn't a massive "sign-up bonus" in terms of cash, getting 2% back on a $2,000 purchase right out of the gate feels good.
- Set a calendar reminder. Since the rewards come in February, set a reminder on your phone to check your email or Citi app during that month. People often forget their certificates or let them expire.
Ultimately, this card is about the long game. It’s not about the instant gratification of a $200 sign-up bonus. It’s about the slow, steady accumulation of cash that makes your February Costco trip feel like a free shopping spree. If you can handle the once-a-year payout and you’re a Costco loyalist, it’s a no-brainer. Otherwise, there are plenty of other Visas in the sea.