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See Costco’s Financing Options and How They Compare
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Costco sells bulk goods and big-ticket items, including widescreen TVs and patio furniture — plus, you can even buy new tires or book a vacation through the retailer. But if you can’t pay for your purchase in cash, here are a few Costco financing options that could help you fund your purchase, and even earn you rewards along the way.
- Costco Anywhere Visa® Card by Citi
- Costco Anywhere Visa® Business Card by Citi
- Alternatives to Costco’s financing options
Costco Anywhere Visa® Card by Citi
If you shop at Costco regularly or use a credit card to pay for your gas, groceries, restaurant spending and travel-related purchases, the Costco Anywhere Visa® Card by Citi is worth considering for the rewards you’ll earn on every purchase.
This Costco credit card can be used anywhere Visa credit cards are accepted. It doubles as your Costco membership card and offers a variety of perks and rewards, including:
- Cash back on purchases
- Extended warranty protection
- No foreign transaction fees
While there is no annual fee for the card, you must be a Costco member to qualify. Costco has two tiers of membership fees: The base-level membership costs $60 per year, and the executive membership costs $120 — but includes a cash back reward of up to $1,000 each year for Costco purchases in store and online, as well as Costco Travel.
|Costco Anywhere Visa® Card by Citi|
|Rewards||4% cash back on eligible gas for the first $7,000 per year and then 1% thereafter, 3% on restaurants & travel, 2% at Costco & Costco.com, 1% on all other purchases|
|Late payment fee||$41|
|Cash advance fee||5% of each cash advance; $10 minimum, whichever is greater.|
|Annual fee||$0 with your Costco membership|
The Costco Anywhere Visa® Card by Citi may be appealing because of its great rewards. But to qualify, you typically need to have a credit score of 720 or higher, which could be an obstacle for some applicants.
Costco Anywhere Visa® Business Card by Citi
The Costco Anywhere Visa® Business Card by Citi is just for business expenses. This card could be a good way to finance a big purchase if you’re looking to extend and expand your business and need a line of credit, or if you’re looking to earn Costco rewards on regular business expenditures.
Like the personal Costco Anywhere Visa® Card by Citi, the Costco business credit card has a variety of cashback rewards for different types of purchases, as well as similar perks. It too doesn’t charge an annual fee, except for the Costco Business base-level membership fee of $60 or the executive membership for $120 (which also comes with the annual 2% reward).
|Costco Anywhere Visa® Business Card by Citi|
|Rewards||4% cash back on eligible gas*, 3% on eligible restaurants & travel, 2% at Costco & Costco.com, and 1% on all other purchases|
|Annual fee||$0 with your Costco membership|
Alternatives to Costco’s financing options
Applying for a Costco credit card isn’t your only option for financing purchases. Here are a few ways to cover purchases.
Low-interest credit card
Costco offers a personal credit card as well as a business credit card. But while both cards offer Costco rewards, they also both charge a slightly above-average APR. There are a number of credit cards on the market that offer great rewards on everyday purchases, as well as purchase protection for big-ticket items. If you have strong credit, you could explore low-interest credit cards. For business costs, there are many business cards that come with benefits such as 0% interest for a months-long introductory period or a low annual fee (or none at all).
A personal loan is a financing option that can be used for a wide variety of purposes, from debt consolidation to major purchases and travel. Personal loans are lump-sum loans that are repaid in fixed monthly installments over a set period of time.
These loans are typically unsecured, which means they don’t require collateral. As such, lenders will rely heavily on your credit profile to determine loan eligibility. Rates can also be higher than if you opted for a secured loan, which requires collateral.
For people with good to excellent credit scores, personal loans may be a great alternative to Costco financing options, as loan interest rates are fixed, and usually lower than the APR on a credit card. However, borrowers with poor credit may not qualify for personal loans at all, or may only qualify for loans that charge a high APR.
The monthly payment calculator below can help you calculate how much your loan will cost you in total:
Paycheck advance apps
Money can be tight in the days leading up to payday. If you have an urgent purchase coming up, you could consider paycheck advance apps like Earnin or Dave to get a short-term cash advance while you wait for your next payday. This can help you afford essentials from Costco such as groceries, toiletries and other immediate needs.
If you’re using your paycheck advance to help pay for groceries and gas, then the Costco credit card may be worth considering instead, since you’ll earn rewards on purchases you’d be making anyway. However, if you need a short-term loan and cannot qualify for another credit card, a paycheck advance may be a better option than a Costco financing option. These apps typically do not require a credit check, making them a potentially good option for subprime borrowers.
The information related to the Costco Anywhere Visa® Card by Citi and Costco Anywhere Visa® Card by Citi has been independently collected by LendingTree and has not been reviewed or provided by the issuer of this card prior to publication.