Here's What I Use My Costco Visa For Most (Hint: It's Not Costco)

I have a bunch of credit cards, but there are only a handful of them I use regularly. To be exact, there are five credit cards that are typically in my wallet, and one of them is the Costco Anywhere Visa® Card by Citi. And the primary reason it stays in my wallet isn't so I can pay for purchases at Costco.

Of course, I use my Costco Anywhere Visa® Card by Citi when I shop at Costco, but I only make a Costco shopping trip about once a month. While I love stocking up on certain bulk items -- especially meat, cleaning products, and snacks for my kids' school lunches -- the reality is that I buy the majority of my groceries elsewhere.

However, of the five cards that are typically in my wallet, the Costco Anywhere Visa® Card by Citi gets the second-highest purchase volume. And there is one big reason why.

Here's what I always use my Costco Visa card for

Of the credit cards I carry, the one area where the Costco Anywhere Visa® Card by Citi really shines is gas purchases. Simply put, I get the best value for my money by using the card every time I fill my tank.

The card earns a stellar rewards rate of 4% back on gas, whether it is purchased at a Costco gas station or elsewhere. The rate applies to as much as $7,000 in spending per year, and if you drive an electric vehicle, it applies to EV charging purchases as well. My wife and I both carry the Costco card and use it to pay every time we fill up, and between the two of us, we spend between $3,500 and $4,000 on gas in the typical year.

Of course, the Costco Visa Card isn't perfect, especially for redeeming the rewards you earn.

Specifically, the card doesn't offer cash back rewards. It earns rewards that can be used at Costco. Each year, Citi sends me a rewards certificate that is based on an entire year of credit card rewards. Some consumers might see the once-a-year rewards payout as a drawback, but being able to do a large (and usually free) Costco trip once a year is a perk I find very enjoyable.

Several strong rewards categories

The Costco Anywhere Visa® Card by Citi also earns 3% back on restaurants and travel spending, with no limits, as well as 2% back at Costco. For this reason, I often use the card when I dine out as well. Between gas and restaurants, I charge far more to the card than I do from actual Costco purchases. However, for travel, I prefer to use an airline-specific credit card to earn miles as well as achieve elite frequent flyer status.

One key takeaway is that it's important to learn a credit card's full rewards structure, as it can often extend beyond the obvious spending categories. And the Costco Anywhere Visa® Card by Citi offers a pretty exceptional rewards program, especially for a card with no annual fee (other than the cost of a Costco membership).