Skip to main content

You’re going to hate this change to your Costco credit card’s benefits

This benefits change is bad news for Costco credit card holders

Bad news for Costco fans: one of the most beloved perks of the Costco credit card will soon be going away. Credit card companies often offer their customers exclusive benefits like cash back and discounts to stand out from the competition. But nothing good can last forever—especially in times of economic instability like these. Keep reading to learn how your Costco credit card benefits are changing and what you can do instead.

Costco storefront with car parked in front
Grant Beirute / Unsplash

Say goodbye to this Costco credit card perk

In a partnership with Citi Bank, Costco offers two types of credit cards: the Costco Anywhere Visa Card and the Costco Anywhere Business Visa Card. Both offer benefits like no annual fees for Costco members and cash back on gas and Costco purchases. But one of the most unique Costco credit card benefits is the free extended warranty protection, offering 24 additional months of coverage on purchases up to a seven-year limit. Or, at least, it used to be.

As many investigative Reddit users have discovered, this perk is slated to end for both cards on January 22, 2023. All qualifying Costco purchases made before the end date will still be covered by the warranty, and the warranty will still stand for past purchases that are currently covered. But anything you buy after January 22nd will no longer qualify for the additional protection.

What prompted this seemingly sudden change? In a notice from Citi Bank, the company explained, “We are making these changes so that we can continue providing the key benefits that our customers use and value most at no additional cost.” While this explanation is a bit vague, it seems likely they’re ending this benefit due to budgetary setbacks caused by inflation and other economic stressors.

This isn’t the first time Citi Bank has removed credit card benefits. In 2019, the creditor cut a lot of benefits from its cards, including extended warranty and purchase protection. The Costco credit card was originally spared from this perk purge, but unfortunately, that won’t be the case for much longer.

Costco aisle full of shoppers
Sean Lee / Unsplash

Are extended warranties really worth it?

Getting an extended warranty for no extra cost is a great credit card perk; it makes repairs simple and provides consumers with essential peace of mind. But when you’re paying for a warranty out of pocket, is it really worth it? In truth, it depends on the cost of the item, how complex it is to repair, and the fine print of the coverage.

The cost of an extended warranty can vary greatly depending on the product and store. In general, experts recommend avoiding warranties that cost more than 30% of the total price of the item you’re buying.

Often, it may be better to skip the extended warranty altogether. According to Consumer Reports, stores keep 50% or more of what they charge for extended warranties. They also found that repairs are often covered by manufacturer’s warranties and often, the costs of repairs aren’t much higher than the price of the service plan.

Soon, Costco credit cardholders will no longer receive free extended warranties on their qualifying purchases. The change to the Costco credit card perks may come as a surprise to many consumers. But there’s still time to take advantage of this benefit before it disappears. So, if you’re planning to buy any large electronics or appliances from Costco, be sure to do so before January 23rd. Otherwise, it may be best to forgo the extended warranty altogether.

Editors' Recommendations

Shannon Cooper
Former Digital Trends Contributor
Shannon Cooper has written about everything from pet care and travel to finance and plumbing in her seven years as a writer…
Someone charted Walter White’s entire Breaking Bad wardrobe, and it’s as drab as you’re imagining
You may be surprised what White's clothing means throughout Breaking Bad
Photo of Walter White

Breaking Bad is a special crime drama because it focuses on the small aspects of the filmmaking experience. Sure, a compelling plot and a laundry list of exciting cliffhangers are enough to garner millions of fans. The other elements of the show are what helped it to become legendary, though. The attentive camera angles and the use of techniques, such as montage, helped give the show a different feel from the other prestige dramas on television at the turn of the 2010s. Creator Vince Gilligan accounts for every minuscule detail, especially the wardrobe of the main characters.

You may have heard that every character on Breaking Bad has a color wheel associated specifically with them, but one Reddit user was able to give a full visual display of evidence for this theory. By showing every outfit antihero Walter White wears throughout the 62 episodes of the series, viewers can gain a broader perspective on what these ensembles mean.

Read more
SlingTV just made it easier to keep up with every March Madness game in real-time, anywhere you go
Sling TV debuts two new features that will make March Madness even better
how to watch march madness anywhere sports scores


For many people, spring means a vacation from school or work. It could signal the flowers are ready to bloom and the barbecue is about to exit the garage and settle in on the back porch. And for basketball fans, spring is the best time of the year! March and April are two of the busiest months to watch college basketball as the NCAA Tournament kicks off. May and June mean the NBA Playoffs will begin to determine the champion of the league.

Read more
Every ‘Super Mario Bros. Movie’ trailer (plus the change you won’t expect)
We have all of the Super Mario Bros. Movie trailers
Super Mario Brothers

There are very few characters in entertainment more recognizable than Mario. The jolly plumber with the red cap and blue overalls has been Nintendo's most iconic figure for nearly four decades, meaning several generations of children have grown up playing his games. But for those of us who grew up with the plumber and his cohorts, the last and final trailer for The Super Mario Bros. Movie has revealed one plot change you probably weren't expecting.

The Super Mario Bros. Movie | Final Trailer

Read more