Personal Finance

Best Mastercard for Costco?

  • Last Updated:
  • Jul 7th, 2015 5:09 pm
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[OP]
Member
Jun 5, 2010
421 posts
15 upvotes
Toronto

Best Mastercard for Costco?

What would be the best mastarcard if its use is largely, if not entirely, for Costco?

The Capital One Platinum is specifically for Costco members: http://www.capitalone.ca/credit-cards/costco/ but the reward is quite disappointing with just 1% return on Costco purchases (after the promo for double % expire), it's funny that their card is specifically for Costco but the rewards is designed for restaurant and gas.

Thoughts?

Thanks!
3 replies
Member
Mar 19, 2015
293 posts
58 upvotes
You might want to read it again. The reward rate is "up to" 1%.
You only earn 0.5% on the first 3k annual spend, 1% after that.
Capital One World and MBNA Rewards World Elite, both give 2% straight up on everything. Though of course both have an annual fee.
Just don't get caught thinking that Costco qualifies as a grocery store for any bonus cash back on any card. They aren't coded as a grocer, they're coded as a warehouse/wholesale.
eonibm wrote: Quite a few people don't know what they are talking about and someone has to put them in line.
Member
Oct 16, 2014
225 posts
152 upvotes
Moncton, NB
The reason this Cap1 card is designed for Costco Members is the rewards are issued to the cardholder as a Costco Voucher. Plus, the credit card acts as a Costco membership card. Granted, if you are looking for cash or travel rewards, there might be better MasterCard options for you. A good way to compare would be http://www.ratehub.ca/credit-cards/mastercard; if you click on "Monthly spending by category", you'll be able to sort card according to the rewards earned based on your spending. As emeralds6edge pointed out, Costco purchases would belong in the "everything else" category.
Deal Addict
Nov 18, 2012
1503 posts
578 upvotes
Toronto
Mbna world elite, 89 annual fee for 2% reward with anything purchase.

Keep in mind the cp1 Costco higher reward rate is only for first couple months.
Simple is the best.

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