Here's Why I'm Not Using a Costco Credit Card to Shop at Costco

The Costco Anywhere Visa® Card by Citi is hands down one of the best credit cards to use at Costco warehouses. The card earns an unlimited 2% back at Costco, 3% on travel packages purchased through Costco Travel, and 4% at eligible gas and charging stations (up to a $7,000 spending cap per year).

So if this card is one of the best to use at Costco, why am I refusing to use it to buy my Costco groceries?

Two words -- welcome offer

Now, let me be clear: The Costco Anywhere Visa® Card by Citi is one of the best cards to use at Costco not because its rewards beat other credit cards, but because Costco only accepts Visa cards. That automatically excludes a slew of great Mastercard, Discover, and Amex cards.

But for as exclusive as Costco's payment processors are, they can't keep out a great Visa credit card -- the Wells Fargo Active Cash® Card. (See rates and fees.)

This cash back card earns unlimited 2% cash rewards on all purchases, including those made at Costco. Terms apply. But where it has greater potential is in its welcome offer, which is currently a $200 cash reward after new cardholders spend $500 within the first three months. Terms apply. To put that into perspective, the Costco Anywhere Visa® Card by Citi would earn $200 in rewards on its 2% earn rate only after you spent $10,000 on Costco purchases.

But the welcome offer is only the icing on the cake. What I really love about the Wells Fargo Active Cash® Card -- and the reason I'm using it instead of a Costco Anywhere Visa® Card by Citi -- is that I don't have to wait to redeem rewards: I can use cash back as I earn it. In contrast, the Costco Anywhere Visa® Card by Citi sends your cash back in the form of a reward certificate once per year, typically after the close of your February billing statement. Because inflation devalues rewards over long periods, I prefer to "earn and burn," which is why the Wells Fargo card suits me more.

Two other ways the Wells Fargo Active Cash® Card trumps the Costco Anywhere Visa® Card by Citi:

• Fifteen months of 0% introductory APR: New cardholders of the Wells Fargo Active Cash® Card can enjoy 0% intro APR for the first 15 months on both balance transfers and new purchases. (After that, the go-to rate of 20.24%, 25.24%, or 29.99% Variable APR applies.) The Costco Anywhere Visa® Card by Citi, in contrast, doesn't have an intro 0% APR period and will charge high interest on balances left unpaid after their due date.
• Cellphone protection: The Wells Fargo Active Cash® Card offers cellphone protection for cardholders who pay their cellphone bill with the card. You get up $600 per claim and enjoy coverage for theft, damage, and "involuntary and accidental parting." Terms apply.

What would change my mind?

If the Costco Anywhere Visa® Card by Citi let me redeem rewards throughout the year, I would strongly consider using it. Truth is, I love the 3% back on Costco Travel and the 4% back on gas. It's a bummer the card doesn't have a welcome offer -- not even a $25 Shop Card -- but the savings at Costco are already substantial enough. For now, I'll earn 2% on Costco purchases with my Wells Fargo Active Cash® Card and burn through rewards as I earn them.