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.
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:
Fair to Excellent
On Neo’s website
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:
Fair to Excellent
On Tangerine’s website
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:
Good to Excellent
On CIBC’s website
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 Card | Annual Fee | APR Purchases | APR Cash Advances | Rewards |
| CIBC Costco Mastercard | $0 | 19.75% | 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 | $0 | 19.99%-26.99% | 22.99%-28.99% | Get 5% average cash back at 10,000 affiliated merchants across Canada |
| Tangerine Money-Back Credit Card | $0 | 19.95% | 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 | $120 | 19.99%% | 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 | $120 | 20.99% | 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
