Citigroup to take Over Costco Cobranded Cards

Discuss the Visa & MasterCard payment networks as well as cards that operate through them.
11 posts
Centurion Member
Centurion Member
Posts: 1099
Joined: Sun May 04, 2014 4:41 pm
Location: Atlanta, GA

Citigroup to take Over Costco Cobranded Cards

Postby popamode72 » Mon Mar 02, 2015 7:36 am

Discuss. And they will under the Visa network according to the MW piece.

I really don't like Citi by the way. This probably might mean high APRs and relatively low CLs if they do this wrong but on the flip side, it also means that you can use your other Visa cards at Costco too, so even if you aren't interested in getting the cobranded card, there's still that.
Macy's TLs (21k), Lowes (17k), CSP (10k), Sam's Club (10k), Nordstrom (5k), AARP (4.2k), Freedom (3k), Discover (1.5k), Quicksilver (2k), BoA (3k), Barclaycard Arrival (2.5k), Amazon Store (6k), Paypal (4.9k), Sam's Club MC (3.6k), Walmart MC (1.2k)

User avatar
Centurion Member
Centurion Member
Posts: 410
Joined: Wed Jun 04, 2014 1:06 pm
Location: Chicago

Postby PlyrStar93 » Mon Mar 02, 2015 9:17 am

I am surprised, as there has always been predictions in Capital One taking this over and MasterCard would be the network.

As the style of Citi, you know the drill. One of the hardest underwriting criteria in the industry, and the service is... While I don't mess with their customer service too much, as a customer for more than two years, I have to say their website really needs better designer to maintain, as there are just so many bugs out there and many links are dysfunctional. Another issue is co-branded cards will require separate username from those non-co-branded ones, unless you have a bank account with them. When of applying for a card from Citi, expect to receive a request of 4506-T from them if you don't get instant approval.

I used to like them pretty much, as they are the first to give me a credit card. The APR of my Forward card, which is my first card, is 12.99% before reduction. Now I get a card from them and they give 22.99% through prequalifier. Frankly, they are still good at 6 month soft pull CLI, though it might be only 1.5k each time, though you may encounter a denial if your limit is high enough. You may be able to combine limits from different cards, but that will take a hard pull as they consider you are requesting CLI.

Since Visa cards will be available to use, it may be extremely easy to rack up points for loyalty programs, since there are way more choices. So this makes me doubt the value in getting a co-branded card for Costco. Nonetheless, even during those days Visa cards are not accepted in store, buying Costco cash cards online has always been viable.

One last thing--While they chose Citi as issuer, cards issued by Citi under MasterCard and American Express network might not be able to use in there. Citi has issued its new cards under MasterCard, e.g. the Double Cash. Now it looks like we can only achieve at most 1.5% back. The FIA AMEX days will be gone, unless you meet a spending threshold on an FIA Visa.
Citi Forward Visa $5000 10/2012 | American Express Blue Cash Everyday $8000 2/2014 | Discover it $7000 5/2014
Chase Freedom Visa Signature $7000 6/2014 | Citi ThankYou Premier Visa Signature $5000 1/2015
All EMV.

Centurion Member
Centurion Member
Posts: 443
Joined: Wed Jul 09, 2014 5:55 pm
Location: San Jose CA

Postby yfan » Mon Mar 02, 2015 9:39 am

I had hoped that Amex would at least get to keep the portfolio and move us over to a different card product. Since that is not going to be the case, I will have to look into applying for a new Amex next year and moving my TE limit over to it, or in the best case scenario, have Amex PC my TE to a different product (but I doubt that's possible).

Green Member
Green Member
Posts: 24
Joined: Wed Dec 04, 2013 10:15 am
Location: Iowa

Postby liberate » Mon Mar 02, 2015 9:44 am

Never dealt with Citi. I'm wondering what the rewards will be. In a related Yahoo Finance news article:
Costco Wholesale Corporation ("Costco") (COST) today announced it has entered into a new co-brand credit card program agreement with Citi and an acceptance and co-brand incentive agreement with Visa. The implementation of these agreements is subject to the purchase of the existing co-brand credit card portfolio by Citi.

Not really sure what the bolded means. Should I expect my TrueEarnings card to be ported over to a Citi card? If that's the case I'm wondering what AmEx is going to do to keep the cardholders.

Edit: After yfan's post, I guess I'll be applying for a new AmEx card at some point too.
It: $19.5k
TrueEarnings: $12k
Sallie Mae: $5k
Freedom: $2.5k

Best Buy: $8k
Kohl's: $0.8k

Discover TU FICO: 754 (6/2015)
Building credit while completeing grad school. Three long years to go...

Centurion Member
Centurion Member
Posts: 322
Joined: Tue Oct 16, 2012 11:20 pm
Location: Miami, Cuba

Postby TheLethargicAge » Mon Mar 02, 2015 10:06 am

Sounds like I'll be cancelling my TrueEarnings card. Not to eager to have a "TryEarning" Citi Platinum Visa in my wallet.
Blue Cash Preferred ($24K), Costco TrueEarnings ($8K), Better Balance Rewards ($6K), CashForward ($15K), Sallie Mae Rewards ($10K), Quicksilver ($17K), AARP Rewards ($15K), Freedom ($15K), Double Cash ($16.5K), It ($28.5K), Fidelity Investment Rewards ($18K), Cash+ ($11K)

User avatar
Centurion Member
Centurion Member
Posts: 4440
Joined: Thu May 08, 2014 7:42 pm
Location: United States

Postby CarefulBuilder14 » Mon Mar 02, 2015 10:20 pm

I'm glad it's Visa. Unless the Citi Costco card has really amazing rewards, Freedom or CSP will do nicely.
Warranties and sketchy merchants: Schwab Platinum
Price rewind: Costco
Travel insurance: Prestige, CSP
Perks: IHG, Hyatt
Rewards/Offers: Discover, Freedom, ED, BCE
Taxes/Misc: SPG

Limited value, might close: Arrival

Might add: First Tech, proper business card

Centurion Member
Centurion Member
Posts: 508
Joined: Tue Aug 13, 2013 10:04 pm
Location: ca

Postby whit » Tue Mar 03, 2015 2:01 am

I'm not surprised but mildly disappointed it's over so soon and a tiny part of me hoped discover can pull out even though mc has a better chance against visa

visa has been super aggressive and has gotten chase to switch over completely and having talked to some of the programmers and sales execs there I can feel excite my and innovation budding in the air, just a feeling mind you because they will not let the top top secrets out

I'm wondering what MasterCard is going to do to keep an edge on this

Centurion Member
Centurion Member
Posts: 1741
Joined: Wed Jun 05, 2013 3:12 pm
Location: US

Postby takeshi » Tue Mar 03, 2015 9:14 am

I don't recommend assuming that the TE will be automatically converted into a Citi card. It could just be converted into another AmEx card with those wanting the Citi Costco card required to apply for it. Without the details we'll just have to wait and see.

The selection of Citi doesn't really matter to me. I mainly picked up the TE for backdating as I already had a Costco membership which made the TE effectively no AF. I doubt I'd apply for a Citi Coscto card but it really just depends on the details.

Green Member
Green Member
Posts: 5
Joined: Mon Jan 19, 2015 10:37 am
Location: Minneapolis, MN

Postby upnorth » Tue Mar 03, 2015 1:20 pm

I would have preferred a Master Card with Chase. But Citi was desperate to move on from the sub-prime portfolio to servicing a group of affluent high spending customers. Since Master Card already had the Sams Club account, Visa was more desperate. Discover never stood a chance. The risk to Costco would be too high.

Platinum Member
Platinum Member
Posts: 82
Joined: Wed Jul 24, 2013 9:56 pm
Location: Corvallis, Oregon

Postby Wildcat_1 » Tue Mar 03, 2015 4:56 pm

I thought I saw somewhere that there was talk the TE could just be converted by AMEX to an Everyday product when the Costco relationship ends.

Return to “Visa & MasterCard”

Who is online

Users browsing this forum: No registered users and 3 guests