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Costco is the most popular department store in America, according to YouGov, and a lot of that comes back to the great deals it offers its customers on everything from groceries and appliances to travel packages and auto insurance. For many of its members, the savings they earn in a year easily outweighs the cost of the annual membership.

But if you’re just taking the listed prices at face value, you might be paying more than you need to. Here’s a little-known way to earn cash back on your purchases too.

How do you pay for your Costco purchases?

If you’re like a lot of people, you probably use a credit card for your Costco purchases. Cash back credit cards like these are a smart choice, as long as you can pay the charges off at the end of the month, because you’ll earn cash back you can use to cover other purchases. But most rewards credit cards only pay a standard 1% back at Costco. So if you spend $100 there, you’re only going to get $1 in rewards, and it can take a while to earn anything substantial.

Consider opening a credit card that offers bonus rewards for Costco purchases if you hope to maximize your earnings. Some cards out there offer these rewards specifically at Costco, while others more broadly offer bonus rewards at wholesale clubs, including Costco and Sam’s Club.

If the card you choose offers 2% back on these purchases, you’re now earning twice as much as you’d get with a standard cash back card. That can help you gain rewards a lot faster.

Is now a good time to open a credit card that offers bonus rewards on Costco purchases?

Now is a great time to open a credit card that offers bonus rewards at Costco because the holiday shopping season is just around the corner. You may not be able to rack up sufficient rewards to reduce your holiday costs. But if you use the card for holiday spending at Costco, you’ll be able to use any rewards you earn to reduce your everyday costs next year.

To get started, all you have to do is choose the card you’re interested in and fill out the online form. The issuer may need a little time to review your application. Then, if you’re approved, it’ll send you the card in the mail within a few business days.

What if you don’t live near a Costco?

You might be wondering if the card is worth it if your nearest Costco is far away. That’s ultimately up to you. If you choose a card that offers bonus cash back at other stores, too, it might still be worth the investment. But if rewards are limited exclusively to Costco, you’ll have to weigh your spending habits to decide whether you’ll charge enough to the card in a year to warrant owning it.

Just make sure you read the fine print before you sign up for any card so you understand what you’re getting. And if you have any questions about the card’s perks or its bonus rewards, contact the issuer for clarification before you apply.

Top credit card to use at Costco (and everywhere else!)

We love versatile credit cards that offer huge rewards everywhere, including Costco! This card is a standout among America’s favorite credit cards because it offers perhaps the easiest $200 cash bonus you could ever earn and an unlimited 2% cash rewards on purchases, even when you shop at Costco.

Add on the competitive 0% interest period and it’s no wonder we awarded this card Best No Annual Fee Credit Card.

Click here to read our full review for free and apply before the $200 welcome bonus offer ends!

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Kailey Hagen has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.