You’ve undoubtedly been approached with a Costco Cash Back Mastercard offer. Is it, however, truly worthwhile? Let’s take a look to see if this credit card is worth your money.
*Note that Costco and Capital One’s agreement will end in September 2021.*
Key facts about this card:
Annual fees: 0$
Annual interest rate: 19.75%
Type of rewards: Store cashback
Rewards Details: Get a 3% discount in restaurants, a 2% discount at gas stations, and a 1% discount on everything else.
The benefits of the Capital One Costco credit card
There are 3 types of benefits with this card: the “Everyday Benefits,” “Travel Benefits,” and “Mastercard Benefits”
- Everyday Benefits: This benefit includes 3 perks. First, the price protection service can help you save money by reimbursing you the difference for the product’s sudden drop in price. For instance, if you spend $50 for an item that drops to $30 a few days later, this service would reimburse you the difference of $20. The price decrease must occur within 60 days of the purchase date in order for this to apply. The highest price difference you may recover is $100 per item, with a total of $500 each calendar year. You’ll also get 120 days of purchase protection on all Capital One-purchased products that are stolen, lost, or destroyed anywhere in the globe. Items will be replaced, fixed, or reimbursed if they are defective. Finally, have also access to an extended warranty which doubles the manufacturer’s warranty of your product bought with this card for up to 2 years.
- Travel Benefits: You and your family will be covered against common carrier accidents if you purchase your ticket using this card. For all travels on a bus, cruise ship, airline, or rail, this coverage can be up to $250,000. If your luggage is delayed for more than 4 hours, you can earn up to $100 each day for three days, plus you have access to 24/7 travel help. The collision damage waiver given by rental businesses is covered by Capital One’s car rental collision/damage insurance. For a maximum of one month, this is a potential savings of roughly $20 each day.
- Mastercard Benefits: This card, being part of the Mastercard umbrella, provides you with several perks. If your card is lost or stolen, you can get an emergency replacement, cash advances, phone support, and an ATM recommendation from Mastercard Global Services. Finally, your account is subjected to an illegal transaction, you are protected by Zero Liability.
Pro of Capital One Cosco card:
- High cash back on restaurants and gas stations
- Insurance coverage
- Act as your Cosco membership card
Cons of Capital One Cosco card:
- No special cashback rate for shopping at Cosco
- Only offers Cosco cashback (no real money cashback)
- The card is set to expire in September 2021
The Capital One Costco Mastercard, which is only available to Costco members, is a good value since it offers great rewards for a no-fee credit card and also serves as your Costco membership card.
On the other hand, you must redeem your cash rewards in-store while other cards allow you to get your money as a statement credit, a check, or a direct deposit.