You Can Get a $400 Costco Shop Card for Spending $2,500 at Once This Week

Planning on spending big at Costco sometime soon? Well, this week (Oct. 16 to 20) might just be the best time to do it. While Costco frequently runs promotions on big-ticket items, from now until Oct. 20, you can earn a $400 Shop Card when you spend $2,500 or more on qualifying purchases in a single transaction. That means, if you spent $2,500, your cash back rate would be about 16%. 

If that sounds like a good deal to you, let's look closely at this limited-time deal. 

How does the promotion work? 

You have to spend at least $2,500 in one transaction. This could be one item, or it could be multiple items. What's more, you have to spend $2,500 before taxes, fees, and shipping are taken into account. It also needs to be at least $2,500 in spending after any other discounts or offers are applied. Finally, this offer is limited to one per member. 

Once you meet that criteria, Costco will send your Shop Card electronically, which you can use in-store or upload to your Costco shopping app. 

What Costco items are eligible? 

You can find the full list of eligible items (about 1,072) on Costco's website. If we're looking at them by category, however, here's what might be eligible: 

• Appliances
• Furniture 
• Home Improvement
• Gourmet Foods 
• Mattresses 
• Patio, Lawn, & Garden 
• Seasonal
• TVs

Currently, the five "most viewed" items under this promotion include a 7-piece dining set ($1,099), a Novaform foam mattress ($399 to $579), a Sealy mattress ($599 to $949), a zero turn riding lawn mower ($5,299), and a Whirlpool refrigerator ($649). 

But that only scratches the surface of what's available. In my own browsing, I've seen a loft bed for kids, a 300-pound weight set with an Olympic bar, swivel, and armchairs, and my favorite -- a premium seafood variety pack with king salmon, Alaskan halibut, Alaskan sablefish, scallops, dungeness crab, and smoked salmon. 

Wait -- is this actually a good deal? 

This is a tricky question. On the one hand, if you've been putting off big purchases, this might be a good time to save money. On the other hand, if you've been putting off purchases because you don't have the money, I wouldn't risk going into credit card debt over a $400 gift card. APRs on today's credit cards are between 17% and 28%, which could totally wipe out that $400 if you left the balance unpaid for 12 months. 

A credit card with a 0% APR offer might help. But you would need to pick one that offers 0% APR on new purchases and has a 0% period long enough for you to pay back the debt. Plus, Costco only accepts Visa cards. That leaves you with only a handful of cards to choose from. 

Those who have cash to finance the purchase might be better off. But be stingy with your money. It's not worth spending $2,500 to get $400 if you would have been fine with no money spent at all. 

Nonetheless, for those who are in the market for big purchases, this could be your time to save. What's more, if you combine this with a Costco Anywhere Visa® Card by Citi and an Executive membership, you'll get an extra 4% back, or $100. That would bring your total savings to about $500. That's a nice surprise for your finances, especially if you need to spend $2,500 regardless of the promotion. Check out Costco's website for the full list of eligible items and buy what you need before the offer expires on Friday, Oct. 20.