CIBC has developed the CIBC Costco®† Mastercard® as credit card for its clients who are the members of Costco in Canada, which provides the number of privileges aimed at improving the shopping experience at Costco and elsewhere.
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This card has no annual fee, users get cashback on the purchases and others privileges such as having flexible installment plans for purchases. Now, as you consider the CIBC Costco Mastercard for use, this guide on the pros, cons and overall description of the card will be quite useful.
Key information about the CIBC Costco®† Mastercard®
It is a credit card affianced directly exclusively to the Costco members for making purchases from Costco’s departmental stores. The features compiled on this card are primarily suited for low-cost, usual purchases, particularly when shopping at Costco.
Another strength is based on the opportunity, depending on the type of credit card, to receive from 1% to 3% cash back on purchases, which makes it profitable for those people who want to get the maximum of the bonuses.
How does the annual fee work?
As much as no annual fee is one of the outstanding qualities of the CIBC Costco Mastercard, it does not have a foreign transaction fee. This is particularly beneficial in the current credit cards market in that it ensures once and for all fee charges unlike many other credit cards.
How is the credit limit determined?
The CIBC Costco Mastercard’s credit limit is also calculated according to the credit characteristics of an applicant. In the case of the standard credit cards, this company evaluates factors such as the applicant’s income, credit history, and other factors in ascertaining the credit limit that corresponds to his or her ability to pay.
Credit card benefits
- 3% cash back at restaurants and Costco Gas: Earn 3% cash back on all purchases made at restaurants and Costco gas stations. This can lead to significant savings for those who dine out frequently or refuel at Costco.
- 2% cash back at other gas stations and Costco.ca: For those who shop online or purchase fuel outside of Costco, the card offers 2% cash back, providing value even beyond Costco’s walls.
- 1% cash back on all other purchases: Whether you’re shopping at Costco or anywhere else Mastercard is accepted, you’ll earn 1% cash back on all other purchases, ensuring that every transaction contributes to your rewards.
- No annual fee: With no annual fee, this card is an affordable option that doesn’t eat into your rewards, allowing you to enjoy the full benefit of your cash back earnings.
- Flexible installment payment options: CIBC offers special installment plan interest rates for larger purchases made at Costco, with rates as low as 5.99% for six months. This feature can be particularly useful for managing big-ticket purchases without the burden of high-interest rates.
- Mobile device insurance: When you use your card to purchase or finance an eligible mobile device, you’ll receive up to $1,000 in repair or replacement coverage, adding an extra layer of protection for your tech investments.
Cash back rewards program
The cash back rewards feature is arguably the most enticing of the lot in the CIBC Costco Mastercard. Its use of a cash back rate that is tiered allows the cardholder to earn the most points depending on his expenditure patterns. There’s much to like at Synchrony Bank, especially the 3% cash back at restaurants and Costco gas stations, which are two major spending areas for a large number of consumers.
Disadvantages
- High purchase interest rate: The card has a purchase interest rate of 20.75%, which can be costly if you carry a balance from month to month.
- Limited rewards redemption options: The cash back rewards can only be redeemed as a Costco gift certificate, limiting flexibility compared to other cards that offer more versatile redemption options.
- Exclusive to Costco members: You must be a Costco member to apply for this card, which excludes non-members from accessing its benefits.
Limited redemption options
The only major disadvantage of the CIBC Costco Mastercard is this, that while earning cash back, the cards don’t offer many options of what to do with the cash back rewards. Hence, unlike other credit cards that have rather versatile ways of accumulating the rewards, including statement credits, travelling points, or deposits directly to customer’s account, the CIBC Costco Mastercard allows only one method of the rewards’ usage – receiving a Costco gift certificate.
Who can apply for this card?
The following is the eligibility criteria in order to qualify for the CIBC Costco Mastercard. First and foremost a, you have to be a holder of a Costco membership because the card is only issued to Costco members. Besides, you must meet basic eligibility requirements that call for a minimum annual income of $15000 to access the bare minimum CIBC Costco Mastercard.
How to apply for the CIBC Costco®† Mastercard®
Applying online
Thus, it is very simple to become a holder of the CIBC Costco®† Mastercard®, as well as the necessary application is mostly developed taking into account an online format. First of all, you will have to go to the official website of CIBC and locate the web page that is telling about the CIBC Costco Mastercard.
After getting to the website, you can start the application process by clicking on the “Apply Now” button and that will take you to the online application form. There are the basic fields where you are to enter your full name, address, date of birth and employment data.
You will also have to provide your membership number at Costco to show that you qualify for the card as the Costco Anywhere Visa Card is issued only to Costco members. Make sure that every piece of information that you shall be submitting is correct since this shall determine your credit worthiness.
Upon submission of the form, you must go through the information filled in once more to ensure accuracy. To do the submission of your application, you can satisfy all that has been asked by the company or organization. To apply for this card, the process is quite fast and CIBC usually responds within 60 seconds, hence one will be aware of whether he/she has qualified for the card.
If your application for a new card has been approved, your new CIBC Costco Mastercard will be sent to the address you have given. Once you are in possession of the card, you will need to activate it and from the time you do that you are in a position to start enjoying the benefits and earning money back from your purchases.
