CIBC Costco Mastercard

• 

  Mobile Device Insurance

  $1000
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  Purchase Protection

  Up to 90 days
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  Extended Warranty

  Up to a year

If you’re a frequent Costco shopper, the CIBC Costco Mastercard could be your ideal cashback card. Also a top contender for foodies, this card has one of the highest cashback rates for restaurant purchases in Canada.

So, if you want to make the most of your restaurant, gas, and Costco.ca expenses, you'll need to become a Costco member to apply for this card. Otherwise, you won't be approved as a cardholder.

While the card is good for food purchases and online shopping at Costco.ca, keep in mind that it's one of the worst cards for Costco warehouse purchases, which might be a dealbreaker for some members.

How You Earn Rewards With The CIBC Costco Mastercard

Here are the types of cashback rewards you can expect from the CIBC Costco Mastercard:

• 3% cashback on restaurants and CostcoGas
• 2% cashback on Costco.ca purchases (Max $160 yearly)
• 2% cashback on gas (Max $100 yearly)
• 1% on everything else

The best way to earn cashback with the CIBC Costco Mastercard is through Restaurant and CostcoGas purchases. In fact, this card offers one of the highest cashback rates for restaurant purchases in Canada. While other rewards rates like the cashback on Costco.ca purchases and gas are capped, you can still accumulate decent yearly rewards at no expense (since there’s no annual fee).

Redeeming Your Rewards With The CIBC Costco Mastercard

You can expect to receive your CIBC Costco Mastercard’s cashback rewards as a gift certificate redeemable at Costco warehouses. Typically, the rewards will appear on your January statement. 

4 Benefits of The CIBC Costco Mastercard

To decide whether the CIBC Costco Mastercard is the best card for you, you’ll want to brush up on its benefits. Here are some of the perks you’ll receive:

The No-Cost Costco Card

Costco members love a good bargain, so these budget-conscious shoppers will be pleased to know that the CIBC Costco Mastercard comes with no annual cost. That said, you will need to purchase a Costco membership to qualify for this credit card.

Competitive Cashback in Popular Categories

We can’t help but mention it again. The CIBC Costco Mastercard is equipped with one of the highest cashback rates for restaurant purchases in Canada, with a competitive rate that also comes with CostcoGas. The capped runner-up cashback rate categories cover purchases at Costco.ca and gas, before the standard base rate on everything else kicks in.

Additional Cardholders at No Cost

With this card, multiple family members can shop at Costco. You can request up to 3 additional cardholders, all at no additional cost.

Two Cards in One

Although you’ll need to pay for your Costco membership separately, once approved for the CIBC Costco Mastercard, this card acts as both your credit card and your Costco membership card. 

Mentionable Mobile Device Insurance

At no annual fee, you can also enjoy mobile device coverage for your eligible smartphone, something unique to this card out of all the other no-fee competitors we’ll mention below.

4 Downsides of CIBC Costco Mastercard

To make the best decision on whether to apply for this card, we’ve also included the downsides of the CIBC Costco Mastercard.

Beware of The No Warehouse Cashback Earn Rate

A major complaint you might come across with the CIBC Costco Mastercard is that while you can receive bonus cashback rates on Costco.ca purchases, there’s no special earn rate at Costco warehouses for in-person shopping, which would be beneficial to members. 

While it's nice that your rewards redemption gift certificate is redeemable specifically at Costco warehouses, you might want special perks for shopping in-store well before redemption. Alternatively, you might want a card with a higher cashback rate in categories that would cover in-person shopping at stores like Costco. We'll cover some cards that might be a better fit later on in this post.

Restricted Annual Redemptions

As we previously mentioned, the cards' cashback earnings are redeemed once a year and are converted into a gift certificate. This means that you’ll have to wait patiently for your earnings and can only redeem them at a Costco Warehouse. For eager earners or those who want more redemption flexibility, this might be less than ideal.

Exclusive Access For a Fee

Note that while the card itself costs nothing, the required Costco membership to apply for the card does have an annual fee, which can run anywhere between $65 to $130 per year.

Limited Insurance

Although you can’t always expect extensive coverage with a no-annual fee credit card, it may come as a slight disappointment that the CIBC Costco Mastercard doesn’t come with much insurance. The three types of insurance that come with this card are mobile device insurance, purchase protection, and extended warranty coverage.

Comparison to Other Credit Cards and Their Rewards Rates For Warehouse Purchases

The next best way to conclude whether the CIBC Costco Mastercard is for you, is to compare it against similar cards. Here’s how the CIBC Costco Mastercard stacks up against other credit cards, some with better rewards rates for warehouse purchases (something the CIBC Costco Mastercard lacks).

Rogers Red World Elite Mastercard

It might be a little bit trickier to apply for the Rogers Red World Elite Mastercard since it recommends a “very good” credit score and requires a higher annual income. But, if you’re not interested in a Costco membership, or still want a slightly higher cashback earn rate for shopping in-store at Costco, the Rogers Red World Elite Mastercard is a great alternative.

Both cards come with no annual fee, but each have affiliations with other programs (Costco for the CIBC Costco Mastercard, and Rogers, Fido or Shaw services for the Rogers Red World Elite Mastercard). The difference is the Rogers Red World Elite Mastercard doesn’t make it mandatory for you to be a Rogers, Fido or Shaw customer to be a cardholder, but you will earn higher rewards if you are. These rewards are earned on regular purchases, so if you regularly shop at a Costco warehouse, you're contributing to this cashback reward. Even if you aren't a Rogers, Fido or Shaw customer, the base rate on this card for all other purchases is still slightly higher than the CIBC Costco Mastercard.

Another key advantage the Rogers Red World Elite Mastercard has over the CIBC Costco Mastercard is its comprehensive coverage. Unlike the CIBC Costco Mastercard, travelers will enjoy extra car rental damage and theft, emergency out of province medical, emergency medical over 65, and trip interruption and cancellation insurance (which is rare for a no-fee card). In terms of benefits, the Rogers card also comes with an airport lounge Dragon Pass and no cost roaming.

We’ve also voted the Rogers Red World Elite Mastercard as the best cashback card in Canada, specifically for Rogers, Fido and Shaw customers, and the best no annual fee credit card in Canada – two titles that might make it a tempting contender. Plus, it helps that the Rogers Red World Elite Mastercard offers a higher potential first year value and a substantial annual value after that. 

Simplii Financial Cash Back Visa Card

Unlike the CIBC Costco Mastercard, it’s recommended you have “very good” credit to apply for the Simplii Financial Cash Back Visa Card, but the good news is you’ll get a nice welcome bonus (something the CIBC Costco Mastercard doesn’t offer). 

Regarding rewards rates, if you thought the CIBC Costco Mastercard’s restaurant cashback earnings were impressive, you’ll be pleased to know that the Simplii Financial Cash Back Visa Card offers a slightly higher earn rate in this category (making it the highest cashback rate on restaurant purchases in Canada). However, other earn categories are of lower earn value – so this will be the most intriguing to those who like to dine out.

For coverage, the two cards offer the same insurance on extended warranty and purchase protection, but the CIBC Costco Mastercard includes mobile device insurance.

In the first year, you’ll find that the Simplii Financial Cash Back Visa Card has more annual value, but in the years that follow, the CIBC Costco Mastercard takes the lead.

Keep in mind though that as a Visa credit card, the Simplii Financial Cash Back Visa Card cannot be used for Costco warehouse purchases in Canada. You can, however, use it to buy products online at Costco.ca.

MBNA Rewards World Elite Mastercard

If you don't mind paying an annual fee and prefer points to cashback, the MBNA Rewards World Elite Mastercard is another contender that could satisfy in-store Costco shoppers. Enjoy high points rewards rates in popular categories like restaurant and grocery purchases, plus a similar earn rate that counts toward Costco warehouse purchases as the CIBC Costco Mastercard. Compared to the CIBC Costco Mastercard, this card wins in overall return for average spenders.

Besides its rewards, you'll find the MBNA Rewards World Elite Mastercard has a higher first-year value, thanks to its substantial first year bonus and annual birthday bonus. You can also expect extensive coverage, including solid travel insurance, and mobile device insurance, plus added benefits like car rental discounts, concierge services, and unique price protection.

Since it's the only annual fee card we featured in this comparison, we have to address that the card will only be worth it if you plan to make use of its perks enough to offset the yearly cost. Like the Rogers Red World Elite Mastercard, you'll also need a higher annual income and a recommended "very good" credit score to qualify.

Luckily, it's also a Mastercard, so you'll be able to tap it in-store at Costco no problem.

Final Verdict

If you're looking to link your Costco membership to a credit card, earn one of the highest cashback rates for restaurant purchases in Canada, and earn decent rewards in other categories overall, then the CIBC Costco Mastercard could be your top contender. That said, if you're looking to maximize Costco warehouse purchases, this card can't help you there.

However, if you’re a more frequent traveler with “very good” credit, a higher annual income, and are a Rogers, Fido or Shaw customer, you might want to take advantage of the high rates and benefits from the Rogers Red World Elite Mastercard (compatible with in-store shopping at Costco).

If you were intrigued by the restaurant reward opportunities offered by the CIBC Costco Mastercard, you might want the best of the best from a no-fee card and opt for the Simplii Financial Cash Back Visa Card.

Or, if you're looking for another Mastercard alternative, with plenty of perks, high value in popular categories, and better overall return than the CIBC Costco Mastercard, you might want to invest in the MBNA Rewards World Elite Mastercard (if you meet the application requirements).

Frequently Asked Questions

What credit score is needed for a CIBC Costco Mastercard?

It’s recommended that you have a good credit score (typically a score of around 660), to apply for the CIBC Costco Mastercard. 

Is the CIBC Costco Mastercard worth it?

If you’re an avid Costco shopper, meet the required annual income, have a good credit score, and want to reap the benefits of some of the best cashback rates for restaurant purchases in Canada, plus free mobile insurance, then this could be the no-fee cashback credit card for you.

Is it hard to get approved for the CIBC Costco Mastercard?

Alongside a recommended “good” credit score, you’ll also need to meet the required personal income requirement, and you’ll need to have a Costco membership (which comes with a cost). If you meet this criterion, you’ll be more likely to have a successful application.