![Credit Card Showdown: Chase Sapphire Preferred vs. Costco Anywhere Visa [In-Depth Analysis]](/en/content/images/size/w1280/format/webp/20250707223105_chase-sapphire-preferred-card.jpeg)
Credit Cards: A Closely Examined Confrontation - Chase Sapphire Preferred Card versus Costco Anywhere Visa Card
In the realm of credit cards, two popular options for frequent shoppers and travellers are the Costco Anywhere Visa® Card by Citi and the Chase Sapphire Preferred® Card. Both cards cater to distinct traveler profiles, offering unique rewards, redemption options, and benefits.
The Costco Anywhere Visa® Card by Citi is primarily a cash-back card, designed for Costco shoppers. It boasts lucrative gas, dining, and travel cash-back rates, but with limited travel benefits or redemption flexibility. This card rewards users with 5% cash back on gas at Costco (up to $7,000/year), 4% on other gas and EV charging, 3% on restaurants and eligible travel, 2% on Costco and Costco.com purchases, and 1% on all other purchases. The rewards are paid annually as a reward certificate redeemable at Costco warehouses, requiring an active Costco membership for rewards to be valid.
On the other hand, the Chase Sapphire Preferred® Card is a travel-focused rewards card, offering flexible points, meaningful travel perks, and protections for frequent travellers. Points can be redeemed for travel at a bonus rate or transferred to airline and hotel partners, providing more value and flexibility. The card charges a $95 annual fee but provides travel credits and notable travel protections.
For frequent travellers, the Chase Sapphire Preferred® clearly offers superior travel rewards, redemption options, and benefits. It earns 5x points on travel purchased through Chase, 3x points on dining and travel, and 1x point on other purchases. Points can be transferred to multiple airline and hotel partners for increased value, and the card offers additional travel benefits and protections, such as trip cancellation/interruption insurance, primary rental car insurance, and no foreign transaction fees.
The Chase Sapphire Preferred Card also offers a welcome bonus of 75,000 points after spending $5,000 on purchases in the first 3 months. Redeeming Ultimate Rewards points from the Chase Sapphire Preferred card for select travel via a Points Boost offer in the Chase travel portal could have a value as high as $378 (1.75 cents per point).
Meanwhile, the Costco Anywhere Visa Card by Citi does not offer a welcome bonus. However, if spending a lot at Costco, on gas, and eligible travel, the Costco Anywhere card may yield more earnings compared to the Chase Sapphire Preferred card. In a scenario where a user spends $7,000 on gas at Costco, $7,000 on other gas and EV charging, $7,000 on dining and eligible travel, $5,000 on Costco and Costco.com purchases, and $14,000 on other purchases, the yearly earnings on the Costco Anywhere card would be $276 in cash-back.
It's important to note that the Costco Anywhere Visa Card by Citi does not charge a fee for authorized users, but requires a Costco membership for approval. The Chase Sapphire Preferred Card, on the other hand, charges a $95 annual fee.
In conclusion, both the Costco Anywhere Visa® Card by Citi and the Chase Sapphire Preferred® Card serve different traveler profiles, with the former being more suitable for Costco members looking for straightforward cash back on everyday purchases, and the latter offering superior travel rewards, redemption options, and benefits for frequent travellers.
- The Costco Anywhere Visa® Card by Citi provides rewards within the realm of personal-finance, offering cash-back on food, fuel, and travel expenses, making it an ideal choice for Costco shoppers.
- In contrast, the Chase Sapphire Preferred® Card primarily caters to the world of travel, investment, and education-and-self-development, providing users with flexible points that can be redeemed for travel, transferred to travel partners, or even used for entertainment purposes.
- For those who frequently travel and seek technology-driven convenience, the Chase Sapphire Preferred Card offers notable travel protections, such as trip cancellation/interruption insurance and primary rental car insurance.
- The world of finance and business can benefit from theCostco Anywhere Visa Card by Citi's lucrative cash-back rates, particularly for the sectors like food and catering, transportation, and entertainment, given its generous rewards on dining, gas, and travel.
- The decision between the Costco Anywhere Visa® Card by Citi and the Chase Sapphire Preferred® Card depends on individual lifestyle preferences, addressing the need for either straightforward cash-back or flexible travel rewards, redemption options, and benefits.
