CIBC Costco MasterCard Review
Pros
- No annual fee
- Up to 3% cash back on eligible in-store and online Costco purchases
- 2% cash back on eligible gas purchases
- 0.5% to 1% cash back on all other purchases
- Purchase Assurance and Extended Warranty Protection
- Exclusive credit card for Costco in Canada
Cons
- Requires Costco membership
- Limited cash back earning rates outside of Costco
- No additional perks or benefits compared to other cash back credit cards
- No travel rewards or insurance coverage
- Cash back earned must be redeemed at Costco stores
Editorial Note: DollarWise may earn a commission on sales made from partner links on this page.
Performance test results
At DollarWise, for each credit card we test 7 different factors including the rewards, value for money, perks, insurance, strengths and weaknesses of the card.
You can see our full testing methodology here to learn why we’re the most trusted source for credit card reviews.
The CIBC Costco MasterCard has earned a 4.37 DollarWise Rating out of 5. This score is based on a weighted average of the two highest scoring factors (excluding acceptance and approval).
2.6
Rewards
5.0
Fees
0.9
Perks
2.9
Interest rates
1.8
Insurance
4.8
Acceptance
2.5
Approval
The highest scoring categories for the CIBC Costco MasterCard are fees and interest.
These factors are weighted 70% to the highest scoring factor and 30% to the second highest score to get an overall review score.
This weighting allows us to judge cards on their merits and the customers they are designed for.
For the CIBC Costco MasterCard the most important factors for scoring this card are its fees and interest.
Rewards
With the CIBC Costco MasterCard, here’s the rates at which you earn rewards for different spending categories per dollar you spend:
| Bills | 1% |
| Pharmacy | 1% |
| Gas | 2% |
| Groceries | 1% |
| Restaurants | 3% |
| Specific Stores | 3% |
| Travel | 1% |
| All Other Spend | 1% |
Calculating your annual rewards
We estimate that spending $2,000 per month with the CIBC Costco MasterCard would earn $336 in rewards over the year.
Our performance testing research uses an accurate estimation of the average Canadian households spending patterns to predict the rewards a card will earn.
We found that you’d earn this per category:
| Gas | $48 |
| Restaurants | $72 |
| Specific Stores | $36 |
| All Other Spend | $180 |
Our study investigating the value found that each dollar spent on the CIBC Costco MasterCard is worth up to $0.01, depending on how you redeem.
This $336 in rewards value puts the CIBC Costco MasterCard in the top 50% of credit cards in Canada based on rewards earned.
The average credit card in our database earns $337 in rewards for the same spend that the CIBC Costco MasterCard earns $336 in rewards value.
We can compare this card to other options by looking at the earn rate by category.
This earn rate is the percentage return that you would get when you spend on this card, assuming you redeem at the predicted maximum value.
For example, if a card earned 5 points per dollar on gas and each point is worth up to $0.02, then the earn rate is 5 points multiplied by $0.02 each, divided by the dollar you spent.
In this example, that’s a 10% earn rate on gas.
| Spend | This Card | Average |
|---|---|---|
| Bills | 1.00% | 1.25% |
| Pharmacy | 1.00% | 1.17% |
| Gas | 2.00% | 1.48% |
| Groceries | 1.00% | 1.71% |
| Restaurant | 3.00% | 1.53% |
| Store | 3.00% | 1.94% |
| Travel | 1.00% | 1.19% |
| Other | 1.00% | 1.08% |
| Redemption method | Annual rewards |
|---|---|
| Costco gift cards | $437 |
For an annual spend of $24,000, we estimated annual rewards value at up to $336.
That’s equivalent to a 1.40% return on spending.
The CIBC Costco MasterCard has an annual fee of $0. After deducting this, we predicted net annual rewards of $336.
This puts it in the top 40% of credit cards for net rewards after fees.
In comparison, the average card earns net annual rewards of $254.
Fees
The CIBC Costco MasterCard has a $0 annual fee.
The average card charges $85. So, the CIBC Costco MasterCard is in the bottom 50% of cards based on the cost of the annual fee.
Perks
We manually review the perks of each credit card to determine how they compare to other cards.
The CIBC Costco MasterCard scored a 0.9 out of 5 for perks, putting it in the bottom 30% of cards.
The average card scores 1.6 out of 5 for perks.
Interest Rates
| Purchase | 19.75% |
| Cash Advance | 21.49% |
| Balance Transfer | 21.49% |
The average (median) credit card has a purchase interest rate of 19.99% and so the CIBC Costco MasterCard charges 0.24% less than the average.
For cash advances it costs 21.49% compared to the average of 19.96%.
Testing the CIBC Costco MasterCard with a $2,000 starting balance, you can see in the graph how the 0.24% less in interest rates impacts the interest over a year, compared to the average card.
Insurance coverage
| Insurance | This Card | Average |
|---|---|---|
| Extended Warranty | 1 year | 1 year |
| Purchase Protection | 90 days | 90 days |
| Mobile Phone Insurance | $1,000 | $1,000 |
We scored it 1.8 out of 5 for insurance.
It offers 3 types of insurance, whereas the average card has 5 types of coverage.
Approval and qualifying
| Do I qualify? | |
|---|---|
| Estimated Credit Score | 760 – 900 |
| Personal Income | $15,000 |
| Household Income | $0 |
| Fees | |
|---|---|
| Annual Fee | $0 |
| Extra Card Fee | $0 |
| Card type | MasterCard |
We scored it 2.5 out of 5 for approval.
We predict that you will require a credit score of at least 760 to qualify for the CIBC Costco MasterCard, while the average card requires 652 to qualify.
This puts it in the top top 10% of cards by approval difficulty.
The personal income requirements are $15,000, while the average card requires $23,896.
This puts it in the top 30% of cards by the income required to qualify.
The CIBC Costco MasterCard is a popular credit card option among Costco members seeking a card that offers impressive rewards and benefits on their everyday spending. This review unveils its earning potential, elaborates on four notable advantages, and discusses two considerable drawbacks.
Earning potential with the card:
The CIBC Costco MasterCard allows cardholders to earn cash back on various categories. Cardholders earn 3% cash back on restaurant purchases, 2% on gas station and transit expenses, 2% cash back on Costco purchases (including at the gas bar), and 1% cash back on all other eligible purchases.
This versatile cash back structure gives users the ability to accumulate rewards faster on everyday spending.
Benefits
- Membership Reward System: One of the foremost advantages of the CIBC Costco MasterCard is its membership reward system, which includes cash back on Costco purchases. This not only provides cardholders with valuable rewards but also enhances their overall Costco membership experience.
- Cash Back on Gas Station and Transit Spending: The CIBC Costco MasterCard extends considerable cash back on gas station and transit spending, ideal for commuters looking to save on fuel and transportation costs. The 2% cash back on gas stations and transit further propels the card’s value for Canadian households.
- Complimentary Purchase Protection: Complimentary purchase protection is an added perk of this card. Cardholders enjoy an extended warranty and price protection of up to 90 days, assuring them of exceptional value in their purchases and allowing peace of mind in case of price fluctuations or product defects.
- No Annual Fee: Another advantage that sets this card apart is the absence of an annual fee. This creates an accessible, budget-friendly choice for potential cardholders seeking a rewarding credit card without hefty fees.
Drawbacks
- Exclusive to Costco Members: A significant drawback of the CIBC Costco MasterCard is the fact it is exclusive to Costco members, limiting its application among the general Canadian public. Acquiring a Costco membership to access the card may be a detractor for some potential cardholders.
- Cash Back Issued Once a Year: The cash back rewards for the CIBC Costco MasterCard are only issued once a year in the form of a voucher that can be redeemed at Costco stores. This might not appeal to users who anticipate redeeming their rewards more frequently or using them at a broader range of retailers.
Additional information
Overall, the CIBC Costco MasterCard is an attractive option for Costco members aiming to optimize their cash back earnings throughout various spending categories.
From earning a generous cash back at restaurants and gas stations to providing user benefits such as purchase protection and no annual fee, this card packs immense value, despite its Costco membership requirement and infrequent cash back issuance.
Is the CIBC Costco MasterCard not convincing you? Consider the CIBC Aeroplan Visa Card for students or the CIBC Aventura Visa Infinite Card. Still not the right credit card? Make sure not to miss the CIBC Aeroplan Visa Card.
FAQ
Key benefits
- #NAME?
