The CIBC Costco Mastercard: Review
Natasha Macmillan, Business Unit Director - Everyday Banking
After Capital One parted ways with the mega-retailer last year, an announcement was made in September that CIBC would be stepping in to partner with Costco on a brand new Mastercard. In this article, we will cover the details of the no-fee Costco Mastercard, the upgrades that were added in as well as some other credit card alternatives.
Details of the CIBC Costco Mastercard
- Annual Fee: $0
- Earn Rate: 3% cash back at restaurants and Costco gas, 2% at other gas stations and at costco.ca, 1% cash back on all other purchases including at Costco
- Interest rates: purchase 19.75%, cash back 21.49%
- Annual income requirements: $15,000 personal income
While there was a small improvement in the card’s cash back value when transitioning from the Capital One Costco Mastercard to the CIBC Costco Mastercard, there is no special earn rate when shopping at Costco Warehouses. That being said, if you frequently shop at Costco Warehouses, there are other credit cards that will provide you with better rewards.
Furthermore, the CIBC Costco Mastercard only offering the following insurance:
- Purchase security (up to 90 days)
- Extended warranty insurance (up to one additional year)
- Mobile device insurance (up to $1,000 per person, per occurrence)
While this definitely seems like a step back from the more thorough coverage offered previously, one thing to take note of here is the new inclusion of mobile device insurance, which will protect any cell phone, smart phone, or tablet purchased with your card up to $1,000. For those looking to purchase a new device, it’s a great reason to do so with your CIBC Costco Mastercard.
Alternative credit cards to the CIBC Costco Mastercard
These are great alternative credit cards that will earn you more rewards than the Costco credit card.
Tangerine Money-Back Credit Card
Best for Flexible spending
based on spending $2,200/mo after $0 annual fee
- Earn rewards
0.5% – 10% earn rate
- Welcome bonus
$100
- Annual fee
$0
Perks
- Ratehub.ca’s 2023 Award Winner – Best No Fee Cash Back Credit Card
- Life’s back in session. Enjoy it with an extra 10% back.*
- Apply for a Tangerine Money-Back Credit Card by April 30, 2024 and earn an extra 10% back (up to $100) when you spend up to $1,000 in everyday purchases within your first 2 months.*
- Earn 2% Money-Back Rewards on purchases in two 2% Money-Back Categories of your choice, and 0.50% Money-Back Rewards on all other purchases.
- Earn extra rewards – have your Money-Back Rewards deposited into a Tangerine Savings Account, and get a 3rd 2% Money-Back Category.
- No limit on the amount of Money-Back Rewards you can earn.
- Change your 2% Money-Back Categories to suit your spending.
Ratehub’s take
While the Tangerine Money-Back Credit Card is a no annual fee card, what really sets it apart is the ability to customize your rewards. With this card, you can choose your own bonus categories (which will earn you a strong cash back rate of 2% per dollar spent). This is rare in the credit card market and means you can avoid being locked into a bonus category that you can’t take full advantage of, or that doesn’t align with your spending habits.
Pros
- Customizable bonus categories: Flexibility to pick up to three bonus categories to earn 2% cash back on (out of a total of 10 options), which is in sharp contrast to most other cards where you have fixed bonus categories that you have no control over. Users are also given the freedom to change the bonus categories at any time (changes will take up to 90 days to come into effect)
- High cash back earning rate: 2% cash back per dollar on bonus categories is one of the richest earn rates for a no-fee card, plus your rewards are unlimited and don’t have monthly or annual maximums
- Wide acceptance: Widely accepted almost everywhere including No Frills and Costco
- Additional cards at no cost: Free supplementary cards for authorized users
- Frequent cash back reimbursement: Cash back is refunded on a monthly basis, instead of the standard annual reimbursement
Cons
- Limited cash back for non-bonus categories: For all purchases that aren’t categorized under one of your chosen bonus categories, you’ll earn just 0.5% cash back
- Limited travel insurance and perks: No travel medical insurance or any substantial side perks
Eligibility requirements
Minimum credit score: 660
Minimum income: $12,000/yr
Interest rates
Purchase interest: 19.95%
Cash advance: 19.95%
Balance transfer: 1.95% for the first 6 months. 19.95% after promo.
BMO CashBack World Elite Mastercard
Best for Everyday spending
based on spending $2,200/mo after $120 annual fee
- Earn rewards
1% – 10% earn rate
- Annual fee
$120 $0 first year waived
Perks
- Welcome offer: Get up to 10% cash back in your first 3 months and the $120 annual fee waived in the first year*
- Earn more cash back on the categories that mean the most:
– 5% on groceries*
– 4% on transit including ride sharing, taxis and public transportation*
– 3% on gas and electric vehicle charging*
– 2% on recurring bill payments like your monthly phone bill or favourite streaming service*
– 1% unlimited cashback on all other purchases* - Get the highest cash back earn rate on groceries in Canada.*
- Get valuable benefits and offers for digital everyday services from a variety of on-demand apps and subscription services
- Extended Warranty Plus*
- Purchase ProtectionPlus*
- Complimentary membership in Mastercard Airport Experiences provided by LoungeKey*
- Access over 1 million Wi-Fi hotspots around the world – all at no added cost, and no added fees or roaming charges*
- Complimentary Roadside Assistance Program*
- BMO CashBack World Elite Travel and Medical Protection*
- BMO Concierge Service*
- Unlock Mastercard Travel Rewards cashback offers when you travel and shop outside of Canada
- BMO is not responsible for maintaining the content on this site. Please click on the Apply now link for the most up to date information
- Cash Advance Interest 23.99% (21.99% for Quebec residents)
- The offer may vary in Quebec
Features
Ratehub’s take
The BMO Cashback World Elite Mastercard is a great pick if you want easily accessible and unlimited cash back rewards. The card does come with some extra features, too, which are not usually typical for cash back credit cards, although they are not the most competitive perks on the market.
Pros
- Access cash back at any time: Unlike some other cards which require you to redeem only once per year or set a higher minimum redemption, this card allows you to redeem cashback rewards at any time at a minimum of $1
- Strong earn rates: The 5% cash back on groceries is one of the highest in the market
- Unlimited cash back: 1% cash back on all purchases is not subject to any limits or maximums like with other cards
Cons
- Bonus rewards are limited: For bonus categories including groceries, transit and bill payments, you can only earn rewards on the first $300-$500 spent each month, then you’ll earn at the base rate (1%)
- Insurance package: The travel medical coverage only applies for the first 8 days of your trip, which isn’t the most competitive package on the market, plus, the card doesn’t include mobile device insurance
Eligibility requirements
Minimum credit score: 760
Minimum income: $80,000/yr
Interest rates
Purchase interest: 20.99%
Cash advance: 23.99%
Balance transfer: 23.99%
The bottom line
While the CIBC Costco Mastercard might not be the giant leap forward customers were hoping for in comparison to the Capital One Costco Mastercard, there are still some improvements which loyal Costco shoppers can take advantage of. While the CIBC Costco Mastercard has some benefits to Costco members, there are certainly other Mastercard products - all of which can be used at Costco - that will better meet your needs. What do you think of the new card? Let us know in the comments below.