So, is the new CIBC Costco Mastercard the best one to use in store? What are the alternatives? Read on to learn the details of the CIBC Costco Mastercard and of seven attractive alternatives.
CIBC Costco Mastercard review
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CIBC Costco Mastercard
Annual fee: $0
3% at restaurants and at Costco gas stations
2% back at other gas stations and at Costco.ca
1% on all other purchases (including Costco)
Welcome offer: This card does not have a welcome bonus at this time.
Card details
| Interest rates | 20.75% on purchases and 22.49% on cash advances |
| Income required | $15,000 per year |
| Credit score | 560 or higher |
The pros
The CIBC Costco Mastercard is a no-fee cash back card (just like its predecessor, the Capital One Costco Mastercard). It offers 3% cash back at restaurants and Costco gas stations, 2% cash back at other gas stations—which is handy when you’re on the go—and 2% back when you shop at Costco.ca. For all your other purchase categories, you’ll earn 1% cash back (including at Costco).
This card also comes with mobile device insurance, with up to $1,000 of repair or replacement coverage when you charge or finance the price of a mobile device on your card. With certain eligible purchases, you can also get security insurance and extended warranty insurance. If you meet certain requirements, like having a person income of over $50,000 per year, you may qualify for the CIBC Costco World Mastercard, which is essentially the same card, but includes World Mastercard benefits like car rental insurance, travel perks and more.
The cons
There are a few drawbacks to the CIBC Costco Mastercard. While there is technically no annual fee, to truly reap the benefits of this card, it’s worth noting that you (obviously) have to have a Costco membership, which is $60 or more per year. Another point: there’s no limit on how much you can earn throughout the year. But, the cash back earn rate you receive does come with a cap. When you reach your annual spend in a certain category, you’ll still earn cash back—it will just be at the 1% rate for the remainder of the calendar year in that category. For gas, you will receive the 3% cash back rate (and 2% cash back rate at other gas stations) only on the first $5,000. After that, you’ll earn the 1% cash back rate. For Costco.ca purchases, the cap is $8,000 before you return to the 1% base rate.
The cash back redemption process might be considered a downside, too. While some cards pay out cash back earnings monthly, straight onto your statement or into your savings account, the CIBC Costco Mastercard gives them to you the form of gift certificates, issued in January, that you can redeem for anything in the Costco warehouse.
While Costco’s official credit card benefits Costco members, there might be other Mastercard products, all of which can be used at Costco, that will better meet your needs. This no-annual-fee card doesn’t match the perks of some of the cards we’ll discuss below.
The best Costco compatible credit cards in Canada
Best no-fee credit card for cash back
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Rogers Red World Elite Mastercard
Annual fee: $0
3% cash back on all purchases in USD
2% back for Rogers, Fido and Shaw customers
1.5% cash back on all other purchases
Welcome offer: This card does not have a welcome bonus at this time.
Card details
| Interest rates | 20.99% on purchases, 22.99% on cash advances, 22.99% on balance transfers |
| Income required | $80,000 per year |
| Credit score | 725 or higher |
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