The 3 Credit Cards For The Most Cash Back On Your Next Big Costco Purchase

Historically, Costco has some amazing deals on electronics, especially TVs, for its members. It's one of the more generous out of the big box retailers. However, anyone resourceful will tell you, your best option is to combine those discounts and sales opportunities with others to maximize your savings. In particular, by choosing the right credit cards with the highest percentage of cashback in earnings.  

This will net you incredible savings on those big purchases. The trick is to pay down the debt right away or as quickly as possible while still benefiting from the cash back offers. As always, don't spend money you don't have — make sure those debts can be covered. That said, choosing an excellent credit card, one that gives great cashback while shopping at Costco, will help build up loads of extra money or credits you can use effectively. 

This includes the Costco Anywhere Visa Card by Citi, which saw some big rate changes that members will undoubtedly love. That card now gives 5% cashback on fuel purchases made at Costco stations. While it's good for frequent drivers or gas guzzlers, it's not so relevant for modern electronics or even groceries. Let's explore some that could work for all other major purchases.

The first thing to consider, which you might already know, is that Costco does not accept Mastercard, Discover, or American Express credit cards in-store. That also means you cannot use Capital One credit cards. This narrows down your options quite a bit, as some of those Capital One cards have great cash back offers. 

Luckily, if nothing else, Costco has partnered with Citi to offer its own branded cards. Aptly titled, the Anywhere Visa Card by Citi allows shoppers to earn 2% cash back in-store and on all purchases online through Costco.com. In addition, owners can save up to 5% cash back on gas when pumped at a Costco station. Meanwhile, some other perks include 4% cash back on eligible gas and electric vehicle charging fees, 3% cash back at restaurants and eligible travel, including Costco Travel specifically, and 1% on all other purchases.

There are no annual fees, so you won't rack up costs if you don't use the card. However, it is worth noting that the 5% and 4% cash earn offer is only good for up to a combined $7,000 per year, and then it drops to 1% after that. So, if you make a lot of electronics purchases, those perks might reduce faster than you'd expect. Still, it's one of the best cards to have for frequent Costco shoppers, which makes a lot of sense.

Looking for a non-Costco-branded option? Other than Costco's own card, another great option is the U.S. Bank Shopper Cash Rewards Visa Signature, which gives 3% back at wholesale clubs. Granted, you will have to select wholesale clubs as your top 3% perk versus bills and home utilities, gas, and EV charging stations, as you can only have one top item applied at a time. If you're not shopping at Costco, you can also save up to 6% at places like Apple, Lowe's, Best Buy, Ikea, Target, Wayfair, Nordstrom, and many more popular retailers. 

Another option from the same company was the U.S. Bank Altitude Reserve Visa Infinite Card that gave 4.5% back via mobile wallet purchases, but, unfortunately, that card is no longer available for new applicants. For those who already own the card, it appears to remain active and available for cashback.

For other options with rates as high as the best credit cards, PayPal offers up to 5% cash back on offers selected as part of your PayPal Debit monthly category. They have to be selected in advance and in the appropriate category, which includes restaurants, apparel, groceries, fuel, and ridesharing — not electronics. The PayPal Cashback Mastercard also offers 3% back on purchases, but you'd have to shop online only.

If you still want some additional choices when buying a TV, you could look into the Venmo Visa Credit Card, which gives 3% cash back for purchases at Costco, or the Wells Fargo Active Cash Credit Card that earns 2% back in rewards on purchases. 

This guide strictly covers cards offering cash back that you can use; however, there are other cards that offer reward points and further incentives. Moreover, don't underestimate the benefits of Costco's recent electronics trade-in program to save some more money on that next TV. You could trade in old gear for credit to put towards new purchases, and although it's not cash back, it can help you cut down on expenses.