Costco's new Credit Card

[HTSS_TR]

The answers to five important questions about the new Costco Anywhere Card by Visa.

Originally Posted By: fool.com
1. When will the change go into effect?

The new Costco Visa card will go into effect on June 20. Starting on that day, you'll be able to use the card not only at Costco but also anywhere else Visa cards are accepted.

As a corollary, your American Express card should stop working after June 19. At that point, the card will no longer be valid.


Originally Posted By: fool.com
2. What do you need to do?

Current holders of the American Express co-branded card don't have to do anything in order to apply for and receive the new Visa card from Citigroup (NYSE:C). The latter will be mailed between the end of May and early June. There will be directions on the card to confirm you've received it.

The one thing you may need to do is transfer automatic payments that are tied to your American Express over to the new Visa. Along the same lines, if your American Express bill is paid automatically out of your bank account, you'll need to set up autopay for your new card.


Originally Posted By: fool.com
3. Will the new Costco rewards card be better?

Yes. The main reason Costco is switching its cobranded relationship from American Express to a Visa card issued by Citigroup is because the rewards for its customers will improve.


Originally Posted By: fool.com
4. Any additional benefits?

The Visa card offers multiple additional benefits beyond the four-tiered cashback reward program. Beside the fact that Visa cards are more widely accepted around the world, the new Costco Anywhere Card provides:


Originally Posted By: fool.com
5. What will happen to your American Express account?

Your American Express account will be automatically closed. This means the card will stop working after June 19.

The good news is that any balance on your American Express co-branded card will transfer automatically to the new Visa card on June 20. The same is true of previously earned cashback rewards. Accrued rewards that were not previously distributed will be transferred automatically to the new card. As a result, when you receive your cashback rewards coupon in Feb. 2017, it will include cashback rewards earned on your Costco card from American Express during the first half of 2016.


Just use new Costco Visa Card on and after June 20th, 2016 and forget about all cash back and other benefits, they will be taken care off. The only thing you need to do is automatic payment if you had it with American Express. I will setup autopay as soon as I received the new Costco Visa Card.

http://www.fool.com/investing/general/20..._source=yahoo-2

 

[totegoat]

Thanks for the info.

 

[paulri]

In case anyone was wondering, the WSJ says that you can use any Visa, not just Costco's visa, when they make the switch.

http://blogs.wsj.com/totalreturn/2015/03/02/costco-to-accept-visa-credit-cards-next-year/

I know they currently let you use any Amex there, but not everyone might be aware of that.

 

[JHZR2]

That OP doesn't really say anything though about the deal...

The key thing I wanted to know was rewards, as otherwise I'll close the account.

IIRC, the magic numbers were 3% on restaurants and travel, 2% back on all costco purchases but gas, and 4% on gas everywhere.

https://www.nerdwallet.com/blog/credit-cards/new-citi-costco-visa-details/

 

[paulri]

The link in the OP gives you information on teh rewards.

 

[HTSS_TR]

The link I provided did show these cash back deals:

Quote:
According to Citigroup's website, cardholders will earn:

4% cash back on eligible gas worldwide, including gas at Costco, for the first $7,000 per year and then 1% thereafter
3% cash back on restaurant and eligible travel purchases worldwide
2% cash back on all other purchases from Costco and Costco.com
1% cash back on all other purchases


I thought everybody already knew about these rewards so I didn't re-post it. I posted what I think are main points.

I posted this one to remind Costco members to do Auto-pay with new card if they had auto-pay with American Express. Also, to inform current Costco's American Express holder that they shouldn't worry about current reward because it will be transfer to new card.

 

[Donald]

Originally Posted By: JHZR2
That OP doesn't really say anything though about the deal...

The key thing I wanted to know was rewards, as otherwise I'll close the account.

IIRC, the magic numbers were 3% on restaurants and travel, 2% back on all costco purchases but gas, and 4% on gas everywhere.

https://www.nerdwallet.com/blog/credit-cards/new-citi-costco-visa-details/


Typically you should never close a credit card as long as there is no annual fee. Closing credit cards can effect total credit limit and thus percent in use, and average age of credit accounts.

 

[JHZR2]

Originally Posted By: Donald
Originally Posted By: JHZR2
That OP doesn't really say anything though about the deal...

The key thing I wanted to know was rewards, as otherwise I'll close the account.

IIRC, the magic numbers were 3% on restaurants and travel, 2% back on all costco purchases but gas, and 4% on gas everywhere.

https://www.nerdwallet.com/blog/credit-cards/new-citi-costco-visa-details/


Typically you should never close a credit card as long as there is no annual fee. Closing credit cards can effect total credit limit and thus percent in use, and average age of credit accounts.


I couldn't really care less because we have an extremely high credit score and dont rely upon credit for anything. I look forward to the day when I do not have a credit score.

What you state is true though.

 

[JHZR2]

Originally Posted By: HTSS_TR
The link I provided did show these cash back deals:

Quote:
According to Citigroup's website, cardholders will earn:

4% cash back on eligible gas worldwide, including gas at Costco, for the first $7,000 per year and then 1% thereafter
3% cash back on restaurant and eligible travel purchases worldwide
2% cash back on all other purchases from Costco and Costco.com
1% cash back on all other purchases


I thought everybody already knew about these rewards so I didn't re-post it. I posted what I think are main points.

I posted this one to remind Costco members to do Auto-pay with new card if they had auto-pay with American Express. Also, to inform current Costco's American Express holder that they shouldn't worry about current reward because it will be transfer to new card.


I dont go clicking into random posted links.

Apparently the rewards have increased over the current AMEX ones, which is an important fact...

 

[spasm3]

Originally Posted By: JHZR2
Originally Posted By: HTSS_TR
The link I provided did show these cash back deals:

Quote:
According to Citigroup's website, cardholders will earn:

4% cash back on eligible gas worldwide, including gas at Costco, for the first $7,000 per year and then 1% thereafter
3% cash back on restaurant and eligible travel purchases worldwide
2% cash back on all other purchases from Costco and Costco.com
1% cash back on all other purchases


I thought everybody already knew about these rewards so I didn't re-post it. I posted what I think are main points.

I posted this one to remind Costco members to do Auto-pay with new card if they had auto-pay with American Express. Also, to inform current Costco's American Express holder that they shouldn't worry about current reward because it will be transfer to new card.


I dont go clicking into random posted links.

Apparently the rewards have increased over the current AMEX ones, which is an important fact...


I had the same interest a while back, the rewards look worth having the card, i just didn't want more cards, as i pay them off each month. The concensus was to keep the card and not close the account.

 

[HTSS_TR]

I like to have as few things in my wallet as possible. Costco's Credit Card can be used to get into the warehouse and to charge whatever I buy, and can be used at the gas pump too. The bonus with the new Visa if higher rewards, especially 4% cashback on gasoline and out gas price is higher than national average therefore the 4% reward worth it.