Costco Credit Cards is offered to members of their company's frequent and loyal customers. They offer a line of credit and a host of rewards on the card. The only bad thing about it is the Costco Credit Card foreign transaction fee.
There is a cost associated with making purchases with your Card. Some people refer to it as the cost of using your Card. The fee varies according to the Card's terms and conditions. One of the most common fees charged by Costco is the foreign transaction fee. This is one charge that can put a serious damper on your spending power.
A Costco credit Card is issued at a Master Distributor facility, which is an office that is not located in the United States. In effect, this means that a Costco card is not really issued from within the United States, but from some location overseas. For those who travel a lot or who engage in international business, having a card issued from overseas may seem like a money saver. Unfortunately, the cost of this feature will often be added to the balance of the cardholder's account.
A Costco card can earn the card holder an interest rate of between twelve to twenty-two percent. This is determined by the Card's Transactional Fee Schedule. This twelve to twenty-two percent interest rate can be compounded on the balance of the cardholder's account for up to thirty days after the Card's purchase is made.
For example, let us say you make a purchase of gas during the weekend. You do this five days a week. Now let us assume that you do not plan to use your card every day that you have gas to buy gas. If you only plan to use your Card on Sunday and Monday, you would pay only one cent per point (PPS) when you pay with your Card. If, however, you intend to use your Card on Friday and Saturday, you would pay two cents per point (PPS).
Some people believe that they are getting a discount simply because they are carrying a “Dollar Store” charge card. While it is true that the Card has a lower interest rate than most cards, it should also be noted that Costco's Service Fee is not included in this calculation. In fact, this Service Fee and the Annual Percentage Rate (APR) are added at the card holder's discretion. In addition, many Card Holders finds that paying off their balances faster can save them substantial amounts of money on this Service Fee.
One area that Card Holders should be aware of is the foreign transaction fee. A Costco Credit Card earns a zero percent approval for purchases in participating countries. Cardholders traveling outside of the United States should plan on paying the additional fee, which is in addition to any other taxes or fees that might be due. If you are planning to use a Costco Credit Card overseas, you should keep in mind that some countries charge taxes on foreign transactions in addition to the Costco fee. Therefore, it is critical that you become fully aware of all charges and fees when traveling outside the U.S.
One final note about the Costco credit Card: although many American Express, Visa and MasterCard Credit Cards offer rebates on purchases and cash advances, Costco does not. As such, this card can be quite useful as it allows Card Holder's the option of using rebates on purchases and cash advances and then covering these expenses with the interest rate that they have paid out. Cardholders often find this interest rate to be much lower than what they would pay if they chose to pay the full interest rate on purchases.
Costco's Canada Card is one of their many international credit cards available to consumers in North America. What makes it special is the fact that it comes with a low introductory rate of 0.9%, or nine hundred and sixty-nine cents per point. This means that every dollar that is paid on the card will ...
The Costco Visa card is really hard to get before June. With Citi taking the credit card contract over from Bank of America, all current Visa cards are going to soon be accepted at Costco locations. Citi was just supposed to be Taking over the Costco contract from American Express in April, but in ...