Costco is releasing a new credit card for members and it will be rolled out in mid 2016. We always stress here at needhelppayingbills.com that families, whether they are low income or wealthy, should always shop smarter and more effectively. This is one of the easiest things to do to save money for paying bills or even a retirement account. Using a big box wholesale club like Costco is one way to do this as everything they sell is priced at a rate that is slightly above the retailer’s whole sale costs.
Since shopping there can save families a substantial sum of money (especially those with a number of children or other household members) we have reviewed their new credit card below. When it is released later in 2016 it will be a Visa card branded by Citibank. The two companies have worked together on creating favorable terms and conditions for shoppers. It will be replacing the American Express card that millions of members now have.
The savings will be substantial. Not only can families continue to shop at the retailer to buy the bulk goods they need at a low price, but there is an increase in reward rates by using the new Costco Visa credit card. The savings can flow right to the bottom line of a families monthly budget. The rebate amounts are as follows.
- Earn 4% rebates on gasoline purchases, with a maximum of $7,000 per year. This is almost a 100% increase in total rebates possible when purchasing gas.
- Spending money at eligible travel and restaurants will provide the member up to a 3% rebate. Note, review the exact terms and conditions of the Visa Card for a list of “authorized” companies.
- Costco customers will receive 2% back on all spending done at the store.
- Any shopping done at any other retailer that is not Costco will be qualified for a 1% cash back rebate. So if you shop at Amazon, Wal-Mart, Sams, or any other store, the 1% rebate is still effective.
- As a side benefit, Costco still offers many free samples of food and more to visitors!
The interest rate you are charged will vary. Citibank will base this amount based on the person’s credit score, past spending patterns, and other industry standards. Costco will not be involved in setting the annual APR rates. So even though the rebates are higher using this new Visa credit card, you will need to be sure to pay the bill on time, in full each month. If you do not do this than no matter how much improved the cash back program is, you will not benefit during this transition.
It is easy to switch to the new Visa card. In fact, members do not need to do anything! You will be automatically sent a new card, and your existing American Express will be canceled. No one will need to apply or even go to the store. Everything is done automatically and existing members will be sent the new card in the mail.
It is anticipated that members will be receiving the new Visa credit cards starting in June 2016, and the mailing process may conclude in August 2016. So it will take several weeks for every current household to be mailed the new card. If you do not receive one during this time-frame, then feel free to stop by the customer service desk in your local store. Or you can call their customer service line at 1 (800) 774-2678.
The rebate checks will be mailed out to customers in February of the following year. This means that for any shopping you do during 2016 using the new Visa Card or any bills you pay, the rebate voucher will be sent in February 2017. This will be the standard payment date. The funds can help many people pay off any debts or other credit card bills they have accumulated during the holiday shopping season!
If you are a current Costco customer, this review will show how the new Visa Card will save you even more money. If you have never shopped at the store, this program may provide that little extra incentive that you need to sign up for a membership.