Best Credit Card to Use at Costco
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If you are a loyal fan of Costco stores, this may have been a challenging year for you. Earlier this year, Costco ended its longtime partnership with American Express and began a new partnership with Citi and Visa.
If you had been using the old Costco American Express card, or any other American Express card, then you had to find a new card for your regular Costco shopping trips, and it had to be part of the Visa network.
This card also features 3% cash back at restaurants and on eligible travel purchases worldwide, and 2% cash back from all Costco and Costco.com purchases. 1% cash back is earned on all other purchases.
Rewards come as a coupon that cardholders receive each year in February. And like the old American Express card from Costco, your account must be open and in good standing in February to receive your coupon. But just as in the past, the reward coupon can be redeemed at any Costco store by the end of the year for Costco purchases or for cash.
Cardholder benefits include a damage and theft purchase protection program that can repair your purchases or give you a refund if a covered item is damaged or stolen within 120 days of purchase. (90 days for New York residents). This card’s extended warranty coverage can also add a year to your manufacturer’s warranty of a covered item purchased with your card.
This card includes travel benefits such as as a trip cancellation and interruption policy that can reimburse you for certain non-refundable expenses if your travel is disrupted. It also includes worldwide rental car insurance, travel accident insurance and access to an emergency travel assistance hotline.
There is a standard interest rate of 16.49%* (Variable). There is no annual fee for this card with your paid Costco membership and no foreign transaction fees.
Other benefits include a purchase security and extended protection policies. The purchase security policy offers coverage if your purchases are lost or stolen within 90 days of account opening, while the extended protection policy will double the length of your manufacturer’s warranty.
As a Visa Signature card, it offers a variety of travel and shopping discounts. It also features exclusive access to tickets for entertainment and sports events. There is a $59 annual fee for this card that is waived the first year, and no foreign transaction fees.
You also earn 10 Hilton HHonors bonus points per dollar spent on hotel stays within the Hilton portfolio, 5x points per dollar spent on airline and car rental purchases, and 3x points on all other purchases. Points can be redeemed for free night stays at Hilton properties around the world.
With this card, you get immediate HHonors Gold status as long as you are a cardmember, which offers you benefits such as complimentary Internet access, late check–outs, and a fifth night free on award bookings of five nights or more. You can also earn top-tier Diamond status when you use your card to make $40,000 or more purchases within a calendar year. There is a $95 annual fee for this card, and no foreign transaction fees on purchases made outside of the United States.