CIBC Costco® Mastercard® Review

The CIBC Costco® Mastercard® has generated quite a buzz in Canada since its launch. Offering exclusive benefits for Costco shoppers and attractive rewards for everyday spending, it’s no wonder many Canadians are considering this card for their wallets. In this in-depth review, we’ll analyze the features, benefits, and drawbacks of the CIBC Costco® Mastercard® to help you make an informed decision.

1. Exclusive Benefits for Costco Members

As a Costco member, you can take advantage of a multitude of benefits that come with the CIBC Costco® Mastercard®. The card doubles as a Costco membership card, making it convenient for you to shop at Costco warehouses and online. Additionally, the card offers a 2% cashback reward on all Costco.ca purchases, with a generous cap on annual purchases eligible for this rate. This makes the CIBC Costco® Mastercard® an excellent choice for those who frequent Costco stores.

2. Cashback Rewards on Everyday Spending

The CIBC Costco® Mastercard® stands out for its cashback rewards structure. Cardholders can earn:

• 3% cashback on restaurant and eligible food delivery purchases
• 2% cashback on gas station purchases and at Costco.ca
• 1% cashback on all other purchases

There are no limits on the cashback you can earn, and these rewards are automatically applied to your account annually, which makes the card a great option for those who want a hassle-free rewards system. There are some limits for the higher earning tiers applicable generally only to the first $5,000 in purchases within a calendar year.

3. Competitive Interest Rates

The CIBC Costco® Mastercard® offers a competitive 19.99% annual interest rate on purchases and 22.99% on cash advances, which is on par with many other credit cards in the market. It’s essential to keep in mind that maintaining a good credit score and paying off your balance in full each month will help you avoid paying interest.

4. No Annual Fee

Another attractive feature of the CIBC Costco® Mastercard® is its absence of an annual fee. This makes it an excellent option for those looking to maximize rewards without incurring any extra costs. However, it’s worth noting that you’ll still need to maintain a Costco membership, which comes with its own annual fee.

5. Additional Perks

The CIBC Costco® Mastercard® offers several additional benefits for cardholders, including:

• Purchase Protection: This feature offers coverage for eligible items purchased with the card against theft, loss, or damage for up to 90 days from the date of purchase.
• Extended Warranty: The card extends the manufacturer’s warranty on eligible items by up to one additional year.
• Mastercard® Benefits: As a Mastercard holder, you’ll have access to a range of perks, such as exclusive offers, experiences, and savings on rental cars.

6. Drawbacks

While the CIBC Costco® Mastercard® offers several attractive features, there are some drawbacks to consider:

• Costco Membership Required: To apply for the card, you must be a Costco member, which comes with its own annual fee. If you’re not an avid Costco shopper, the membership cost may offset the card’s benefits.
• Limited Redemption Options: The cashback rewards are applied automatically as a credit to your account once a year, which may not be as flexible as other cards that allow you to redeem rewards at any time.
• No Travel Benefits: The card does not offer any travel-related benefits, such as travel insurance or airport lounge access. If you’re a frequent traveler, you might want to consider a card with more comprehensive travel rewards and benefits.

Summary

The CIBC Costco® Mastercard® is a solid choice for Costco members looking to earn cashback rewards on everyday spending without an annual fee. Its competitive interest rates and additional perks make it an attractive option for many. However, if you’re not a regular Costco shopper or require more flexible reward redemption options, this card may not be the best fit for your needs.

Overall, the CIBC Costco® Mastercard® is an excellent option for those who frequent Costco stores and are looking to maximize rewards on their everyday spending. The cashback rewards structure, combined with purchase protection, extended warranty, and Mastercard® benefits, make this card a valuable addition to any wallet. However, it’s important to weigh the potential drawbacks, such as the required Costco membership and limited reward redemption options, before making a decision.

In conclusion, the CIBC Costco® Mastercard® offers impressive rewards and benefits for Costco members, making it a strong contender in the Canadian credit card market. If you’re an avid Costco shopper and want to earn cashback on your everyday spending without an annual fee, this card is well worth considering.