When applying for the popular Citi Costco credit card, one of the most common questions people have is “what credit bureau does Costco pull?” Understanding which bureau Citi is likely to check can help you optimize your credit score and boost your chances of getting approved. In this detailed guide, we’ll break down everything you need to know about Costco’s credit bureau practices.
Overview of Costco’s Credit Card and Citi as the Issuer
The only credit card offered for Costco members is the Costco Anywhere Visa® Card by Citi It provides generous rewards on Costco purchases and gas, has no annual fee, and does not require a Costco membership to apply Citi issues the card, so they are responsible for checking applicants’ credit.
The Three Major Consumer Credit Bureaus
In the United States, there are three main credit bureaus that collect credit report data on consumers – Equifax, Experian, and TransUnion. Each bureau maintains its own database of credit information reported by lenders and creditors. This data includes your payment history, amounts owed, length of credit history, new credit accounts, and credit inquiries.
Why Does Knowing Which Bureau Matter?
When you apply for new credit, the issuer will pull your credit report from one or more of the bureaus to evaluate your creditworthiness. Knowing which one(s) they check allows you to target your credit score optimization efforts accordingly. For example, you may need to resolve errors or discrepancies with a particular bureau before applying.
Experian Appears to be Citi’s Primary Bureau
Based on numerous consumer reports Citi seems to pull credit reports primarily from Experian when evaluating applications for the Costco Visa card. However, they have also been known to pull from Equifax and TransUnion at times. Unfortunately Citi does not disclose which bureau(s) they use.
Strategies for Optimizing Your Experian Credit Score
Since Experian is likely Citi’s first choice, make sure your Experian credit report and score are in great shape. Key factors Experian considers include:
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Payment history – Pay all bills on time. Set up autopay if needed.
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Credit utilization – Keep balances low, 30% or less of your credit limits.
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Credit history length – Maintain your oldest accounts if possible,
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Credit mix – Have a variety of credit types – credit cards, auto loans, mortgages, etc.
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New credit – Limit new account applications. Too many can lower your score.
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Inquiries – Each application causes a hard inquiry which can impact your score slightly for up to a year. Apply selectively.
How Citi May Pull Other Bureaus
While predominantly using Experian, Citi may pull your Equifax or TransUnion reports instead in certain cases, such as:
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You have a freeze on your Experian account
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There are errors or issues with your Experian report
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You have significant differences in your credit history across bureaus
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You reside in a state where they tend to use other bureaus
So it’s wise to also optimize your Equifax and TransUnion credit scores. Address any negatives, maintain positive factors, and check for errors.
Checking All Three of Your Credit Reports
To stay on top of your credit health, check your reports from Equifax, Experian, and TransUnion on a regular basis. This allows you to catch any reporting mistakes early and dispute them promptly. Monitoring services like those from myFICO provide easy online access to your reports.
How to Get Approved for the Costco Visa Card
While Citi’s credit decisions involve proprietary scoring models, excellent credit in the 700s or higher seems to be key to getting approved for their Costco card. Before applying, check all three of your credit reports and scores. Dispute any errors. Then put your best foot forward with Experian since that appears to be Citi’s first choice bureau. Taking these steps can significantly improve your chances of instant approval.
The Takeaway – Check Experian First But Don’t Neglect the Others
Costco Anywhere Visa Card by Citi
The Costco Anywhere Visa has no annual fee, although you are required to have a Costco membership, which costs $60 or $120 depending on what level of membership you get. But if you already have a Costco membership, this isnt really an added cost.
It earns bonus cash back on the following purchases:
- Earn 5% cash back rewards on gas at Costco and earn 4% cash back on other eligible gas and electric vehicle (EV) charging purchases for the first $7,000 combined spend per year, and then 1% thereafter.
- 3% cash back on restaurants and eligible travel purchases and eligible travel, including Costco Travel.
- 2% cash back on all other purchases from Costco and Costco.com
- 1% cash back on all other purchases
The cashback you earn is awarded via an annual reward certificate once your February billing statement closes. Youll need to take the certificate to a physical Costco store to redeem it for merchandise or cash. Learn more about how to redeem Costco credit card rewards.
19.49% – 27.49% variableAnnual fee
$0, Costco membership requiredWelcome bonus
See rates and fees. Terms apply.
The Costco Anywhere Visa® Card by Citi is a valuable card to pair with a Costco membership, but the rewards program is more restrictive than what you get with a typical cash-back card.
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Selects editorial staff.
- Discover one of Citis best cash back rewards cards designed exclusively for Costco members
- Earn 5% cash back rewards on gas at Costco and earn 4% cash back on other eligible gas and electric vehicle (EV) charging purchases for the first $7,000 combined spend per year, and then 1% thereafter.
- 3% cash back on restaurants and eligible travel purchases and eligible travel, including Costco Travel.
- 2% cash back on all other purchases from Costco and Costco.com
- 1% cash back on all other purchases
- No annual fee with your paid Costco membership and enjoy no foreign transaction fees on purchases
- Receive an annual credit card reward certificate, which is redeemable for cash or merchandise at U.S. Costco warehouses, including Puerto Rico
5% of each balance transfer; $5 minimum
Find the best credit card for you
Citi is an advertising partner.
Costco famously declared the price of its hot dog combo is staying at $1.50 forever, but the big-box store helps its members save money on more than cheap grub and bulk goods.
Only Costco members can apply for the card, but membership doesnt guarantee approval. Below, CNBC Select details the credit score youll need if you want to get approved for the Costco Anywhere Visa Card.
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Why Do You Need a Costco Membership? #stepmobile #personalfinance #education #business #step
FAQ
Which credit bureau does Costco use?
What credit score do you need for Costco?
Bottom line. To get approved for the Costco Anywhere Visa® Card by Citi you’ll typically need a FICO® score of 800 or higher.
Who does Costco use for a credit check?
The Costco Credit Card mainly uses Experian to check your credit when you apply, though Citibank may use TransUnion or Equifax instead, according to anecdotal evidence.
What bank does Costco go through?
Costco Anywhere Visa Card by Citi
Variable APR for purchases, balance transfers and Citi Flex Plans subject to an APR: 19.49% – 27.49%, based on creditworthiness.