Costco Credit Card Benefits: Expert Opinion by Aniruddha Pangarkar | WalletHub
Associate Professor of Marketing, Aniruddha Pangarkar, was recently featured in a WalletHub article on the benefits of the Costco Credit Card.
Should every Costco member with a good enough credit score get the Costco Credit Card?
The Costco Anywhere Visa Card may be a good fit for an individual who is a Costco member and is looking to earn rewards on gasoline, dining, and travel purchase activities. For example, if you drive a fair bit and fill up your gas at Costco, then this is a no-brainer card because of its lucrative rewards benefits. Similarly, for consumers who travel frequently, this is a good card because of the rewards structure at restaurants and hotels. Every consumer is different and their needs, wants, and desires are different. I strongly advise consumers to evaluate their purchase and spending habits to decide if the Costco card is a right fit for your needs. If your self-evaluation shows that you may not be using it much and the benefits are really not stacking up, then there are other credit cards that may serve you better. As a reminder, anyone with a Costco membership can apply for this card (although you do need a good credit score to qualify for this card) and it does not cost you anything more beyond your membership fees (no annual card fees etc.).
Do you have any advice for people trying to figure out whether a card like Costco Credit Card is right for them?
If you are a Costco member, travel frequently, and drive around a fair bit, then this card is a good fit for you because of the associated rewards structure, which is very attractive and lucrative. You do need a good credit score to qualify for this card, so consider that before applying since the hard inquiry can set you back further in terms of reducing your credit score. The cash back redemption, zero annual fee (if you are a Costco member), and zero foreign transaction fee (if you are a global traveler) are really quite rewarding. Also, if you frequently shop at Costco, then this is a good card for you. I know a lot of people who take this card, but rarely shop at Costco, and in my opinion, you would then be better served by another credit card that may match your needs.
What do you think is the most underrated benefit that the Costco Credit Card offers?
While the Costco credit card offers myriad and manifold benefits if consumers use the card judiciously and smartly, I strongly feel that the 4% cash back on gasoline is probably the most striking and compelling benefit that is often overlooked. Many consumers, especially those that travel a lot in their automobile for work, can save a whole lot of money each month. Gasoline is an essential need and managing your gasoline consumption while saving finances is important. The 4% cashback all adds up in the end and helps manage your finances better, especially if you are a single income earner or someone that has just started their career.
What other common credit card benefits do you think the Costco Credit Card should add?
In my opinion, with many Americans traveling globally for work, a reputed retailer like Costco, who has high credibility, can look into building partnerships that offer airport lounge services, concierge services (very important for busy professionals who have time scarcity), travel-related services (important for those Americans who are traveling overseas for the first time and need dedicated help), car rental services (offers peace of mind even if you are traveling domestically), and extended warranty services for products like electronics. This will help Costco leverage and target the individuals in that income-bracket who are most likely to be patrons of their credit card.
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