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.
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.