Costco Visa

How I use it:

  • Gas
  • Travel (hotels, airplane tickets, etc)
  • Costco purchases

Quick details:

  • 4% back on Gas
  • 3% back on Travel and Restaurants
  • 2% back on Costco purchases
  • 1% back on everything else
  • No annual fee (but you need a Costco membership)

Annual Value:  $468

  • $300 from Travel (3% x 10 trips/year x $1,000/trip)
  • $96 from Gas (4% cash back x $200/month x 12 months)
  • $72 from Costco purchases (2% x $300/month x 12 months)
  • Ignoring the annual Costco membership fee (notes below)

If you’re going to pick any single card, I can’t think of a better one out there.  The rewards are spread across categories nicely, and if you shop at Costco even semi-regularly you’re getting your value from the membership so there this is essentially a no-annual-fee card.

Plus, the value above is probably understated quite a bit, especially for work travel and family vacations.  Not to mention, if you decide to make a big purchase from Costco, that $300/month can get blown significantly out of the water.

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