Best Credit Cards for Costco of June 2024

If you shop at Costco often, you could save more by getting a credit card that earns bonus rewards there. The best credit cards for Costco generally earn 2% to 3% back on your purchases at its warehouses and on Costco.com.

Costco stores and gas stations only accept Visa credit cards. That's why all the options below are Visa cards, and it's something to keep in mind whenever you're picking a credit card to use there.

• Best for flat-rate cash rewards: Wells Fargo Active Cash® Card (see rates and fees)
• Best for a big welcome offer: Chase Freedom Unlimited®
• Best for Costco and gas rewards: Costco Anywhere Visa® Card by Citi
• Best for flexible cash back: Bank of America® Customized Cash Rewards credit card

Why it's a good fit for Costco shopping: It earns an unlimited 2% cash rewards at Costco and everywhere else, as that rate applies across all spending categories. For consumers who don't want to keep track of bonus categories or just want a one-card wallet, this Wells Fargo card is one of our favorites.

Why it's a good fit for Costco shopping: While this card earns a base rate of 1.5% cash back on purchases, including at Costco, it also earns an additional 1.5% cash back on everything you spend for the first year (up to $20,000 spent). You can earn as much as $300 in bonus cash back with that welcome offer. It also has several other bonus categories, so you can earn more back on your spending outside of Costco, too.

Why it's a good fit for Costco shopping: It's Costco's own credit card, and it doesn't disappoint, earning 2% cash back on your purchases with the warehouse giant. This card also has a few other useful bonus categories with even better rates, including 4% cash back on gas and EV charging purchases (on up to $7,000 in spending per calendar year). If you fill up your tank at Costco on every visit, those gas rewards will get you even more value.

Why it's a good fit for Costco shopping: It earns 2% at grocery stores and wholesale clubs, including Costco. This card also puts you in control by letting you earn 3% cash back in the category of your choice, from a list of six options. One of those options is gas and EV charging stations, which would be a good choice if you get gas at Costco. The 2% and 3% rates apply on up to $2,500 in combined spending across those categories per quarter.

Why it's a good fit for Costco shopping: You'll earn 3% back in whichever eligible category you spend the most, and one of the categories is groceries. While most credit cards exclude wholesale clubs from the groceries category, the Venmo Credit Card doesn't. If Costco and groceries are where you spend the most, you'll earn an unlimited 3% there, which is the best rate I've seen for Costco spending.

There are several great Costco credit cards. Here are the main factors to consider when choosing the best credit card for Costco, starting with the most important.

Rewards rate at Costco

As you might expect, the first thing to look at is how much a card earns at Costco. If Costco is one of the places where you spend the most, aim for 2% to 3% back. Those are the highest rates I've tracked down at Costco, including with its own store credit card.

Some cards earn bonus rewards at Costco specifically, while others earn bonus rewards at warehouse clubs as a whole. Just know that gas and groceries credit cards usually don't earn any extra at Costco. Most card issuers don't consider warehouse clubs to be grocery stores. So if a card earns 3% at grocery stores, that doesn't necessarily mean it will earn 3% back at Costco.

Redemption options

Most of the best Costco credit cards are cash back cards. With these, you can typically redeem your rewards as cash back toward your credit card bill or a deposit into your bank account. There are also some travel rewards cards that earn high rates at Costco. If you like to travel, then you may want to go with one of these cards.

Whichever type of card you choose, check how you'll be able to redeem your rewards. Make sure the redemption options work for you.

Annual fee

Most credit cards for Costco are also no annual fee cards, so if you're trying to keep costs down, it shouldn't be too difficult. But if you go with a travel card, many of them have annual fees. In that case, it's important to figure out if the perks of the card are valuable enough to justify the cost.

Rewards rate on the rest of your spending

Even if Costco is your store of choice and you have a closet full of Kirkland clothes, you probably spend money elsewhere, too. So don't disregard what the cards you're considering will earn on the rest of your spending.

Some rewards cards earn the same rate, such as 2% back, on all types of purchases. These can work well for just about anyone. There are also rewards cards with bonus categories, such as gas stations or restaurant purchases. You may want to go with one of these if the bonus categories are a good fit for your spending habits.

Additional benefits

Many credit cards have other features in addition to the ones already mentioned. For example, some have welcome offers, such as $200 if you spend $1,000 on purchases in the first 90 days. If you're having trouble deciding between two cards, a welcome offer can be a useful tiebreaker.

Another common perk is a 0% intro APR. Not everybody needs this, but if you expect to pay off purchases over time, then a card with a 0% intro APR could help you avoid interest charges.

Credit card methodology

At The Motley Fool Ascent, we rate credit cards on a five-star scale (1 = poor, 5 = best). Our rating criteria includes rewards rates, welcome bonuses, fees, and perks like travel credits and 0% intro APR offers to evaluate our ratings.

Our highest-rated credit cards have:

• A rewards rate above 2% (or 2x points or miles) with average spending, or competitive 0% intro APR balance transfer and purchase offers
• Attainable welcome bonuses that make up for any annual fees
• Low annual fees or a balance transfer fee of 3%
• Top perks such as purchase and travel protections, no foreign transaction fees, travel credits, and status upgrades

We combine these factors with an evaluation of brand reputation and customer satisfaction to ensure you're getting the best card recommendations. Learn more about how The Ascent rates credit cards.