3 Credit Cards to Get Big Cash Back on Your Next Big Costco Purchase

Historically, Costco has amazing deals on electronics, especially TVs, for its members. It is one of the most generous retailers outside of big box stores. However, anyone smart will tell you, your best option is to combine those discounts and sales opportunities with others to maximize your savings. In particular, by choosing the right credit cards with a high percentage of cash back.

This will open you up to incredible savings on those big purchases. The trick is to pay down the loan as quickly or as quickly as possible while still benefiting from the cash back. As always, don’t spend money you don’t have – make sure those debts can be covered. That said, choosing a great credit card, which offers good cash back when you shop at Costco, will help build up a lot of extra cash or credits that you can put to good use.

This includes Citi’s Costco Anywhere Visa Card, which has seen some big price changes that members will no doubt love. That card now offers 5% cash back on gas purchases at Costco stations. While it’s great for casual drivers or gas guzzlers, it’s not as compatible with modern electronics or groceries. Let’s take a look at some that can apply to every other big purchase.

The first thing to consider, which you may already know, is that Costco does not accept MasterCard, Discover, or American Express credit cards in the store. That also means you can’t use Capital One credit cards. This narrows your options a bit, as some of those Capital One cards have great cash back offers.

Fortunately, if nothing else, Costco has partnered with Citi to offer its branded cards. Aptly named, Citi’s Anywhere Visa Card allows shoppers to earn 2% cash back on all in-store and online purchases through Costco.com. In addition, owners can save up to 5% on gas when pumped at a Costco station. Meanwhile, other benefits include 4% cash back on eligible electric vehicle charging charges, 3% cash back on eligible restaurants and travel, including direct Costco Travel, and 1% on all other purchases.

There are no annual fees, so you won’t pay a fee if you don’t use the card. However, it’s important to note that the 5% and 4% cash offers are only good up to $7,000 compounded annually, and drop to 1% after that. So, if you buy a lot of electronics, those benefits may decrease faster than you expect. Still, it’s one of the best cards to have for regular Costco shoppers, which makes a lot of sense.

Looking for a non-Costco option? Besides the Costco card, another good option is the US Bank Shopper Cash Rewards Visa Signature, which offers 3% back at wholesale clubs. Granted, you’ll have to choose wholesale clubs as your top 3% interest when compared to home loans and utilities, gas, and EV charging stations, since you can only get one top item at a time. If you don’t shop at Costco, you can also save up to 6% at places like Apple, Lowe’s, Best Buy, Ikea, Target, Wayfair, Nordstrom, and many other popular retailers.

Another option from the same company was the US Bank Altitude Reserve Visa Infinite Card that returned 4.5% on wallet purchases, but, unfortunately, that card is no longer available to new applicants. For those who already own the card, it appears to always be active and available for cashback.

For some high-value options like the best credit cards, PayPal offers up to 5% cash back on select funds as part of your monthly PayPal Debit category. They must be pre-selected and in the appropriate category, which includes restaurants, clothing, groceries, fuel, and ride-sharing — not electronics. The PayPal Cashback Mastercard also gives you 3% back on purchases, but you’ll have to shop online only.

If you’re still looking for more options when shopping for a TV, you can look into the Venmo Visa credit card, which offers 3% cash back for purchases at Costco, or the Wells Fargo Active Cash Credit Card, which earns 2% back in rewards on purchases.

This guide strictly covers the cash back cards you can spend; however, there are other cards that offer reward points and additional incentives. Plus, don’t underestimate the benefits of Costco’s latest trade-in program to save some money on that next TV. You can trade in old gear for credit to put toward a new purchase, and while it’s not cash back, it can help you cut costs.