What you need to know before you start

Costco offers two credit cards: the Costco Anywhere Visa Card by Citi, which you can use anywhere, and the Costco Visa Card, which works only at Costco and gas stations. Both are issued by Citi, and you request one directly through Costco or Citi's website. You do not need to be a Costco member to request a card, but Citi will check your credit history and may deny you if your credit score is too low or your credit report shows recent missed payments.

The main difference between the two cards is where you can use them. The Anywhere card gives you cash back at any store that takes Visa. The regular Costco card only works at Costco locations and Costco gas stations, but it offers higher cash back rates there. Both cards charge no annual fee if you are a Costco member, and both require you to have a Costco membership to earn rewards.

Key Takeaways

  • Citi issues both Costco cards and will review your credit history before deciding whether to issue one to you.
  • You can request a card online through Costco.com or Citi's website, or in person at a Costco warehouse.
  • The Costco Anywhere Visa works everywhere Visa is accepted, while the regular Costco Visa works only at Costco and Costco gas stations.
  • You must be a Costco member to earn cash back rewards, even if you are approved for the card itself.
  • Citi will ask for your Social Security number, income, and employment information as part of the credit check.

How Citi decides whether to issue you a card

When you request a Costco credit card, Citi pulls your credit report from one or more of the three major credit bureaus — Equifax, Experian, or TransUnion. They look at your credit score, which is a number between 300 and 850 that summarizes how reliably you have paid past debts. Citi does not publish a minimum score, but most people who are approved have a score of 650 or higher. If your score is lower, or if your report shows recent missed payments, collections accounts, or a recent bankruptcy, Citi is more likely to deny you.

Citi also considers your income and current debts. They ask for your annual household income and want to know how much you already owe on credit cards, car loans, and other debts. If your debts are very high compared to your income, Citi may deny you or offer you a lower credit limit. The entire process usually takes a few minutes if you request the card online.

If Citi denies you, they will send you a letter explaining why and telling you how to dispute the information on your credit report if you believe it is wrong. You can request a free copy of your credit report from each bureau once per year at annualcreditreport.com to check for errors.

Where to request a Costco credit card

You have three ways to request a card. The fastest is online at costco.com or citi.com — you fill out a form with your personal information, and Citi tells you whether you are approved within minutes. The second way is to visit a Costco warehouse and ask at the membership desk; staff there can hand you an process or direct you to a kiosk. The third way is to call Citi directly, though this is slower than the online route.

When you request online, have your Social Security number, driver's license, and recent pay stubs or tax returns ready. Citi will ask for your full legal name, date of birth, address, phone number, email, annual income, and current employer. If you are self-employed, have your most recent tax return available. The online form takes about five minutes to complete.

What happens after you are approved

If Citi approves you, they will mail your physical card to the address you provided, usually within 7 to 10 business days. You can also ask to pick up the card at a Costco warehouse if you prefer not to wait for mail. Once you receive the card, you set up it by calling the number on the back or through Citi's website.

Your card comes with a credit limit — the maximum amount you can charge at one time. Citi sets this based on your credit score and income. You can use the card when ready after set up, even if you do not yet have a Costco membership. However, you will not earn cash back rewards unless you are a member. If you want the rewards, you need to sign up for a Costco membership before you use the card.

Understanding the two card options and their rewards

The Costco Anywhere Visa Card works at any store, restaurant, or website that takes Visa. You earn 4% cash back on gas (at Costco and other stations), 3% on restaurants and travel, 2% at Costco, and 1% everywhere else. This card is useful if you shop at many places and want one card that works everywhere.

The Costco Visa Card works only at Costco warehouses and Costco gas stations. You earn 4% cash back on gas, 3% on restaurants and travel, 2% at Costco, and 1% on all other purchases. The main advantage is that you earn the same or slightly higher rewards at Costco itself, and you do not carry a card that works elsewhere. This card is simpler if you do most of your shopping at Costco.

Both cards charge no annual fee if you are a Costco member. If you are not a member, Costco charges an annual membership fee (the amount varies by membership tier). Cash back rewards are paid once per year as a statement credit or check, usually in December.

What to do if Citi denies you

If Citi denies your request, ask them in writing why they made that decision. By law, they must tell you the specific reason or reasons. Common reasons are a low credit score, recent missed payments, too much existing debt, or a short credit history. The denial letter will also tell you how to dispute information on your credit report if you believe it is inaccurate.

If the reason is a low credit score or recent missed payments, you can work on improving your credit before requesting again. Pay all bills on time for at least six months, and try to pay down existing credit card balances. After six months to a year of on-time payments, your credit score usually rises, and Citi may approve you the next time you request.

If the reason is too much existing debt, you can pay down some of your current credit card or loan balances before requesting again. Citi looks at your debt-to-income ratio, which is how much you owe compared to how much you earn. Lowering this ratio can improve your chances of approval.

Frequently Asked Questions

Do I need a Costco membership to get the credit card?

No. Citi will issue you a card even if you are not a member. However, you will not earn cash back rewards unless you are a Costco member. If you want the rewards, you need to sign up for membership before you use the card.

What credit score do I need?

Citi does not publish a minimum score, but most approved cardholders have a score of 650 or higher. If your score is lower, you may still be approved depending on your income and payment history. The only way to know is to request and see what Citi decides.

How long does it take to get the card after I am approved?

The physical card usually arrives in 7 to 10 business days. You can also ask to pick it up at a Costco warehouse instead of waiting for mail. Once you receive it, you set up it by phone or online, and you can use it right away.

Can I use the Costco Visa Card outside of Costco?

No. The regular Costco Visa Card works only at Costco warehouses and Costco gas stations. If you want a card that works everywhere, request the Costco Anywhere Visa Card instead.

What if my credit report has an error on it?

You can dispute errors for free. Get a copy of your report at annualcreditreport.com, find the error, and contact the credit bureau in writing with proof that the information is wrong. The bureau must investigate within 30 days. Fixing errors can raise your credit score and improve your chances of approval if Citi denied you.