Best Credit Cards to Maximize Cash Back at Costco

Posted by Madison on June 16, 2016

Next week, Costco is making the switch from American Express to Visa cards. With the switch, there are plenty of new options to earn cash back. The good news is that you probably already have some of these cards in your wallet, or tucked away wherever you store your cards that aren’t in rotation right now!

The better news is that the earnings potential has gone up not only for the Costco co-branded card, but for all of the other Visa cards we can now use at Costco. Although, it will be kind of strange to have to differentiate between Mastercard and Visa… I can’t think of anywhere else we have to do that!

Specifically, the option to earn 5% cash back on our Chase Freedom card this year is the most exciting news!

I promised reader Carmela that I would put together a list of the best cards to use at Costco. Here are your options to maximize cash back at Costco.

The Best Card to Maximize Cash Back at Costco

Chase Freedom. Wholesale clubs are currently earning 5% cash back during 2nd quarter rotating cash back. Since I know I’ll have no problem spending $1,500 at Costco this year, I’m planning to stock up on Costco Cash cards with my Chase Freedom card this month for the 5% cash back.

Even better, Chase just announced that wholesale clubs will be featured again for 5% during 3rd quarter! There are also rumors that they have extended the 5% for 4th quarter, but they haven’t updated their rewards calendar yet. Chase Freedom is clearly the best choice right now for shopping at Costco.

If you don’t have a Chase Freedom card, you can still get them with the Chase Freedom $150+ Sign Up Bonus.

To earn 5% cash back, you’ll have to activate your card each quarter. Directions for activation and links to the rewards calendar are featured every quarter in our Quarterly 5% Rotating Cash Rewards Credit Cards.

The Chase Freedom card is currently listed under the Cash Back category in our credit card directory.

Other Cards to Maximize Cash Back at Costco

Once you have maxed out your Chase Freedom rewards each quarter, here are the rest of the cards that will earn at least 2% at Costco.

Fidelity Card. We have always used our Fidelity Credit Card from American Express to earn 2%. Ironically, the Fidelity card is also switching from American Express to Visa this month! We can continue using the Fidelity card for 2% cash back.

Costco Anywhere Card. Old American Express Costco cards will be converted to the Costco Anywhere Visa card. You’ll earn 2% cash back at Costco (and 4% cash back on gas).

BankAmericard Cash Rewards. The BankAmericard Cash Rewards card just added 2% cash back at wholesale clubs. If you have a Bank of America checking account, your cash back will be higher than 2% depending on your bonus tier.

Capital One Venture. The Capital One Venture card earns the equivalent of 2% cash back. We used this card to earn free tickets to Disney World.

More on Shopping at Costco

If you're looking for a new credit card, be sure to check out our credit card directory!

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