Costco citi credit card benefits extended warranty

Good morning everyone, happy Friday.  I was reviewing my recent Citi Costco Anywhere Visa Credit Card statement and spotted this announcement at the bottom of my statement.  The announcement says: “Effective January 22, 2023, Extended Warranty coverage will be discontinued and will no longer be provided for purchases made on or after that date.”  I decided to do some digging to find out more information about the change.

I signed into my Citi online account and navigated to the extended warranty page and here is the popup:

I then went to the Card Benefits FAQs page (you need to be logged in to see these FAQs) to see more information about the change.

Here is the link to the current Guide to Benefits and here is the link to the new Guide to Benefits (effective January 22, 2023).  Here are the relevant extended warranty pages:

I have not used the extended warranty protection on the Citi Costco card, but I know some people love this benefit and the added piece of mind.  Frequent Miler has a great resource on extended warranty benefits and other credit card purchase protections, so check out the post to see what the new best card will be for you.  If you have any questions about the Citi Costco Anywhere Visa Credit Card or the extended warranty change, please leave a comment below.  Have a great weekend everyone!

It looks like Costco and Citi may be ending the extended warranty benefit of the Citi Costco Visa credit card, according to some savvy card holders on Reddit's r/Costco and r/CreditCards forums who have posted alerts they received about the upcoming changes.

According to the alerts, the 2-year extended warranty benefit will end on Jan. 22, 2023. Any Costco purchases that qualify for the extended warranty made before that date will still be covered, but any purchases made on or after Jan. 22 will not come with an extended warranty.

Redditors who report that they are Costco employees have confirmed the upcoming changes as far back as four months ago, and blame Citi for decision. "I work at Costco, I was one of the first to see the email from Citi," says u/systemofadingus. "...It’s for sure coming from Citi. Not exactly sure why they are deciding to take that feature away."

Gallery: Costco Products You Can't Return

Understandably, Costco shoppers are disappointed about the upcoming change. The 2-year extended warranty was one of the benefits touted by Costco and Citi for the credit card, and persuaded a lot of people to purchase electronics and appliances with it. 

While there has not been any official word from Costco about the change, any mention of an extended warranty has been removed from the Costco Anywhere Visa Card by Citi website. All the cashback rewards remain the same, and Redditors don't believe there are any other changes coming. Will the end of the extended warranty benefit stop you from using your Costco credit card?

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.

Contents

• Say goodbye to this Costco credit card perk
• Are extended warranties really worth it?

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.

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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.

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.

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