CIBC Costco Mastercard Review for 2024

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Written by Enoch Omololu

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Are you a Costco Canada member looking for a credit card that offers exclusive rewards and cash back? Then the CIBC Costco Mastercard might be what you need.

In this article, we will review the CIBC Costco Mastercard benefits as well as its pros and cons.

CIBC Costco Mastercard – Summary

  • Annual fee for both primary cardholder and supplementary: $0
  • Interest rates: 19.75% on purchases, 21.49% on cash advances, 21.49% on balance transfers
  • To apply for the CIBC Costco MasterCard, you must have an active Costco Wholesale membership. This applies to the primary cardholder and authorized users.
  • Income Requirement: $15,000
  • Also acts as your Costco membership
  • The CIBC Pace It feature allows you to create an installment payment plan for your Costco purchases

Benefits of the CIBC Costco Mastercard

When it comes to benefits, the CIBC Costco Mastercard doesn’t disappoint. Here are some key advantages of this card:

Cash back rewards

The CIBC Costco Mastercard allows cardholders to earn 3% cash back at restaurants and Costco gas, 2% cash back at other gas stations and Costco.ca, 1% cash back on all other purchases (including Costco)

Mobile Device Insurance

You don’t have to worry about the repair cost of damaging your phone.

It also covers the cost of replacing lost or stolen phones (up to $1,000). Remember, you must have your monthly phone bill, or the full cost of the phone, charged to your credit card to claim coverage.

Extended Warranty and Purchase Protection

The card offers extended warranty coverage on eligible purchases. Additionally, purchase protection ensures that you’re protected against theft, loss, or damage for a specified period after making a purchase with the card.

Zero liability for unauthorized transactions

The CIBC Costco Mastercard provides protection against unauthorized transactions, ensuring that you won’t be held responsible for fraudulent charges made on your card.

Mobile app for convenient account management

With the CIBC Costco Mastercard mobile app, cardholders can easily manage their account, track spending, and view cash back rewards, all from the convenience of their phone.

Downsides of the CIBC Costco Mastercard

While the CIBC Costco Mastercard has its merits, it’s important to consider its downsides as well.

You must be a Costco member to be eligible

You have to be a Costco member before you can apply for this card. This means you either pay a $60 annual fee or have to pay $120. Thus, the CIBC Costco Mastercard is not a $0 annual fee card after all.

Cash back rewards are provided annually as a voucher

Unlike some other credit cards, the CIBC Costco Mastercard accumulates rewards throughout the year and provides them as an annual voucher. This may not suit everyone’s preferences or spending habits.

Cash back rewards caps

The CIBC Costco Mastercard offers enticing bonus earn rates of 2% at Costco.ca and 3% at Costco Gas.

But there are caps on these rates. After spending $8,000 on Costco.ca purchases, the rate drops to 1%, and after spending $5,000 on gas, it decreases to 1% as well.

How to Apply for the CIBC Costco Mastercard

Applying for the CIBC Costco Mastercard is a straightforward process. Here’s how you can get started:

You can visit their website or the nearest branch to apply.

Remember, to be eligible, you must:

  • Be a resident of Canada and of legal age in your province
  • Be a Costco member with a valid Costco membership number
  • Have a minimum annual income of $15,000.

CIBC Costco Mastercard Alternatives

While the CIBC Costco Mastercard offers attractive benefits, it’s always a good idea to explore alternative credit card options. Here are a few alternatives worth considering:

Neo Card

This card offers up to 5% cash back with no annual fee. With Neo, you can redeem your rewards at any time with no minimum redemption requirements. You can also choose how to redeem your rewards.

Neo Financial Mastercard

Rewards: Earn up to 15% cash back at Neo partners and never fall below 0.5% average cash back.

Welcome offer: Get an extra 15% cash back on your first purchases at many Neo partners.

Interest rates: 19.99% to 26.99% for purchases, 22.99% to 28.99% for cash advances.

Annual fee: $0

Recommended credit score:
600
900

Fair to Excellent

neosecuredmastercard cc-img

On Neo’s website

  • Earn up to 15% cash back on your first purchases at many Neo partners.
  • Get an average of 5% instant cash back at over 8,000 Neo partners.
  • Never fall below 0.5% average cash back – if you do, Neo will top it up.
  • Cash back is instantly rewarded.
  • Use the Neo app to view cash back offers near you and view insights on your spending.
  • Instantly use the digital Neo card after signing up.
  • Optionally subscribe to Bundles for more cash back on certain spending categories.
  • No annual fees or income requirements.

No annual fee or income requirements

Earn up to 15% cash back

Neo mobile app shows you cash back offers near you

Only earn 15% cash back once at each Neo partner

You need to subscribe to Neo Bundles for more cash back

No insurance coverage

The Neo Card is an all-in-one cash back credit card and mobile app that earns you cash back on all purchases. Shop at Neo partners and earn up to 15% cash back, rewarded instantly.

Tangerine Money-Back Credit Card

This card has no annual fee, and you can earn unlimited cash back of up to 2% in up to two categories and 0.5% cash back on everything else.

You can also earn extra rewards by depositing rewards into your Tangerine savings account and earning a third 2% cash back category.

Tangerine Money-Back Credit Card

Rewards: Earn 2% unlimited cash back in up to 3 categories of your choice plus 0.50% on all other purchases.

Welcome offer: Get an additional 10% cash back after spending $1,000 in the first 2 months ($100 value).

Interest rates: 19.95% for purchases, balance transfers, and cash advances.

Annual fee: $0

Recommended credit score:
600
900

Fair to Excellent

tangerinemoneyback-cc-img

On Tangerine’s website

  • Earn 2% unlimited cash back on 2 categories of your choice, including groceries, restaurants, entertainment, and recurring bill payments.
  • Unlock an additional 2% cash back category when you deposit your money back into a Tangerine Savings Account.
  • Earn 0.5% unlimited cash back on all other purchases.
  • Cash back is earned automatically on everyday purchases and paid monthly.
  • 1.95% promotional balance transfer interest rate for 6 months.
  • Purchase assurance and extended warranty are included.
  • Track and categorize your spending with the Tangerine mobile app.
  • To qualify, you must make a minimum of $12,000 per year.

Earn unlimited 2% cash back in up to 3 categories

No annual fee

1.95% balance transfer interest rate for 6 months

No travel benefits or insurance

No physical bank branches as it is an online-only bank

The Tangerine Money-Back Credit Card has no annual fees and earns you 2% cash back on up to 3 categories. You choose the categories in which you spend the most to maximize your rewards.

CIBC Dividend Visa Infinite Card

Among Canada’s highest earn rates, CIBC Dividend Visa Infinite puts your money back in your wallet when you spend on groceries, gas, recurring bills, and more.

Journie Rewards offers even more value with fuel rebates that can save you hundreds of dollars each year.

CIBC Dividend Visa Infinite Card

Rewards: Earn up to 4% cash back on everyday purchases.

Welcome offer: Get the first year annual fee waived for the primary cardholder and up to 3 additional users.

Interest rates: 20.99% for purchases, 22.99% for cash advances.

Annual fee: $120

Recommended credit score:
660
900

Good to Excellent

CIBC Dividend Visa Infinite Card

On CIBC’s website

  • Earn 4% cash back on gas and groceries (up to $80,000 annually).
  • Earn 2% cash back on dining, transportation, and recurring payments (up to $20,000 annually).
  • Earn 1% unlimited cash back on everything else.
  • Redeem cash back for as little as $25 at any time.
  • Save up to 10 cents per litre at participating gas stations when you link your Journie Rewards card.
  • Save up to 25% at participating Avis and Budget car rental locations.
  • Send money abroad with no transaction fees and no interest as long as you pay your balance each month.
  • Access a 24/7 concierge service, dining events, and hotel benefits with the Visa Infinite program.
  • $500,000 common carrier accident insurance, out-of-province emergency medical travel insurance, and auto rental collision/loss damage insurance are included.
  • Get coverage on your mobile device and any purchases with mobile device insurance and purchase security and extended protection insurance.
  • Use CIBC Pace It to pay for large purchases in monthly installments.
  • You must make a minimum of $60,000 (individual) or $100,000 (household) income to be eligible.

Earn unlimited cash back and redeem at any time

High earn rate on groceries and gas

Travel, shopping, and mobile device insurance included

High annual income requirement

4% and 2% cash back categories have a yearly spend limit

No travel rewards or benefits

The CIBC Dividend Visa Infinite Card is a top choice if you spend a lot of money on groceries and gas, as you get 4% cash back on up to $80,000 per year. You save money on gas and car rentals and get valuable insurance coverage with this card.

MBNA Rewards World Elite Mastercard

Not only does this card offer a generous earn rate of 5 points per dollar, but it also boasts a huge category cap.

Each spending category is set at $50,000, which includes groceries, entertainment, and digital media.

Credit CardAnnual FeeAPR PurchasesAPR Cash AdvancesRewards
CIBC Costco Mastercard$019.75%21.49%3% cash back at restaurants and Costco gas, 2% cash back at other gas stations and Costco.ca, 1% cash back on all other purchases (including Costco)
Neo Financial Mastercard$019.99%-26.99%22.99%-28.99%Get 5% average cash back at 10,000 affiliated merchants across Canada
Tangerine Money-Back Credit Card$019.95%19.95%Get 2% cash back on purchases you make every day in two 2% cash-back categories of your choice.
MBNA World Elite Mastercard$12019.99%%24.99%Earn 5 points per $1 on eligible restaurant, grocery, digital media, membership, and household utility purchases (up to $50,000/year). 1 point per $1 on other eligible purchases.
CIBC Dividend Visa Infinite Card$12020.99%22.99% (21.99% for Quebec residents)Earn 4% cash back at eligible gas stations, EV charging stations and grocery stores 2% cash back on transportation, food and recurring payments 1% cash back on everything else

Is the CIBC Costco Mastercard Worth It?

The CIBC Costco Mastercard offers enticing bonus earn rates of 2% at Costco.ca and 3% at Costco Gas, in spite of having caps on these rates. If you frequently shop at Costco, these bonus rates could still make the card worthwhile.

Additionally, accumulating all cash back as a Costco voucher issued annually can be appealing to avid Costco shoppers. With 3% back at restaurants and 1% elsewhere, it can further boost your Costco rewards.

The combination of competitive bonus rates and the convenience of a Costco voucher makes the CIBC Costco Mastercard a compelling choice for Costco enthusiasts overall.

FAQs

How do I apply for the CIBC Costco Mastercard?

To apply for the CIBC Costco Mastercard, you may visit the official CIBC website or its nearest branch to get access to an application form. Make sure that you are a Costco member before applying.

Does the CIBC Costco Mastercard have built-in insurance?

This card includes three types of insurance built-in, including mobile device coverage.

Are there any annual fees or income requirements for the CIBC Costco Mastercard?

The CIBC Costco MasterCard has no annual fee, and the personal income requirement is $15,000.

Are there any perks for CIBC Costco Mastercard Online Banking?

One of the best features is the CIBC Global Money Transfer feature, which lets you send money abroad without paying transfer fees.

Related: HSBC Cash Rewards Mastercard Review

Bonuses & Deals for April

Free prepaid card with up to 5% cashback. No credit check & $20 bonus when you deposit $50 and complete first purchase.

Earn average of 5% unlimited cashback. No annual fees and $25 bonus.

Get a $100 cashback bonus in the first 2 months. No annual fee credit card.

No current offers for this category.

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Enoch Omololu

Enoch Omololu is a personal finance expert. He has a master’s degree in Finance and Investment Management from the University of Aberdeen Business School (Scotland) and has completed several courses and certificates in finance, including the Canadian Securities Course. Enoch is passionate about helping others win with their finances and has written about money matters for over a decade. He has been featured or quoted in The Globe and Mail, CBC News, Yahoo Finance, GO Banking Rates, Financial Post, Bankrate, Forbes, Toronto Star, CTV News, and other personal finance publications. He founded Savvy New Canadians, one of Canada’s top financial education platforms.

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