Best Costco Credit Cards for May 2024

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

Costco Reward Rates

As you might expect, the first thing to consider is how much money a card can earn at Costco. If Costco is one of the places you spend most of your money, aim for 2% to 3% back. This is the best rate I've found at Costco, including using its own store credit card.

Some cards earn bonus rewards exclusively at Costco, while others earn bonus rewards at the entire warehouse club. Just know that you generally won't earn any extra money on the Costco gas and grocery credit card. Most card issuers don't consider warehouse clubs to be grocery stores. So, if a card earns 3% at the grocery store, that doesn't necessarily mean it will earn 3% at Costco.

Redemption options

Most of the best Costco credit cards are cash back cards. With these, you can usually redeem your rewards as cash back on your credit card bill or deposited into your bank account. There are also travel rewards cards that earn high interest rates at Costco. If you enjoy traveling, you may want to use one of these cards.

No matter which type of card you choose, check how to redeem your rewards. Make sure the redemption option is right for you.

annual fee

Most of Costco's credit cards also don't have an annual fee, so if you want to keep costs down, that shouldn't be too difficult. But if you are using a travel card, many have annual fees. In this case, it's important to figure out whether the card's benefits are valuable enough to justify its cost.

Reward rate for remaining payouts

Even if Costco is your store of choice and your closet is full of Kirkland clothes, you'll probably be spending your money elsewhere. So don't lose sight of what the card you're considering will earn you on the rest of your spending.

Some rewards cards offer the same interest rate on all types of purchases, such as 2% back. These apply to anyone. There are also rewards cards with bonus categories, such as gas station or restaurant purchases. If the bonus category is a good fit for your spending habits, you may want to choose one of them.

extra benefits

In addition to the features already mentioned, many credit cards have additional features. For example, some have welcome offers, such as getting $200 if you spend $1,000 in the first 90 days. If you're having trouble deciding between two cards, the welcome offer can be a useful tie-breaker.

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

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