Costco Gas Rewards program is not the best - There's a better alternative.
Updated: May 22
Costco offers its members a cashback reward for gas and they have this program called "Costco Gasoline Cash Back Rewards". You need to apply for their Costco Anywhere Visa Cards by Citi. You can use this card at any gas station in the US. This rewards program although comes with good benefits such as earning a 4% cashback on gasoline purchases for up to $7000 per year, 3% cashback on restaurants and travel. It also rewards you with a 2% on purchases at Costco, and 1% on all other purchases.
The fuel and food cashback rewards are very low compared to other cashback apps. You will see why at the end of this post and a better gas rewards program that you will glad to get to know.
3 reasons why the Costco Gas Rewards program is not worth it:
Reason # 1: Very low savings at the end of the year
Costco fuel rewards, which give you a 4% cashback on gas will get you $120 every year. An average customer in the US buys around 700 gallons of gas every year. If you do the math ($3 per gallon, that is $2100 per year for gas), using this card will get you around $75 in savings which is not worth it given the following difficulties getting Costco gas as mentioned in this post.
With such small savings, why go the extra mile just to have small cashback earnings. If there is a way to earn to earn even more, you should know it. That is exactly my point.
Reason # 2: There are better and free alternatives
A better alternative is to use a free cashback app like GetUpside which will give cashback on gas. Users save an average of $350 to $500 per year per vehicle! This app gives you 10 to 25 cents cashback per gallon of gas at most gas stations in the US. Read my review here.
Even if you are only going to Costco using your own credit/debit card, you get a saving of 10 cents which is lower than what this free app gives you which is an average savings of 20 cents per gallon! Download this today using this promo link and get an extra 20 cents per gallon bonus on your first purchase!
There are other similar apps like Gas Buddy but again you need the best offer when it comes to cashback and you need to get cashback with less hassle. I have explained why GetUpside is better than GasBussy in this post.
Reason # 3: Why carry another credit card?
Are you not tired of another card in your wallet? Another credit card statement to look forward to. Another hassle of scheduling payments when you already have other points credit card which you can use instead anyway.
I use American Express and I earn 2000 points on average every month which is worth around $30! So why you need another card - really. Havings too many cards are neither good nor bad. That many cards only make your life complicated.
Hopefully, these three reasons would help you understand why the Costco rewards card is good but not the best. There is a better way such as using the GetUpside cashback app which users use and save at least $500 a year. Now on other apps can beat that.
Some drivers use their Costco rewards card or Gas Buddy and apps like GetUpside and get the highest savings. Get creative and see if it works for you this way.
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