3 Reasons to Upgrade to Costco’s Executive Membership — Even Though It Just Got More Expensive

This post may contain affiliate links which may compensate us based on your interaction. Please read the disclosures for more information.

Not sure it makes sense to pay for Costco’s more expensive membership? Read on to see why you should give it a chance. [[{“value”:”

After years of keeping its membership costs steady, Costco raised its fees on Sept. 1. Now it costs $65 a year instead of $60 to have a Gold Star (basic) membership, and it costs $130 instead of $120 for an Executive membership.

In light of these higher fees, you may be thinking you’ll stick with Costco’s basic membership and avoid paying double for the Executive membership. But here are three reasons to upgrade despite the higher cost.

1. You might easily make back your upgrade cost — and then some

Indeed, an Executive membership at Costco will cost you twice as much as a basic one. But it also lets you earn 2% cash back on your purchases. And if you shop at Costco often enough, you can not only make back your extra $65, but pocket cash back beyond that.

It takes $3,250 in Costco spending to earn $65 cash back. But if you shop at Costco 40 times out of the year and spend $125 per visit, that’s $5,000, $100 of which goes back in your pocket from your Executive membership. In that case, you’re ahead by $35 for paying for the upgrade.

2. You can enjoy extra travel perks

As an Executive member, you can earn cash back on your Costco Travel bookings. A single $4,000 vacation package could leave you with $80 cash back, covering your entire upgrade fee and leaving you with a little bit of money left over.

But Executive members at Costco are also eligible for added perks when they book vacations, like free room upgrades, beverage credits at resorts and on cruises, and more. These benefits can make your travels more enjoyable, not to mention save you money on costs you might otherwise incur.

3. Executive members get access to insurance benefits

Insurance is an unavoidable expense if you own a car or home. Costco members can apply for different types of insurance through Costco, and there may be savings involved.

But Executive members may be eligible for added benefits when they buy auto or homeowners insurance. These include roadside assistance, home glass repair, and home lockout assistance.

There’s no risk in upgrading your Costco membership

You may be hesitant to shell out extra money for a Costco Executive membership — especially now that it costs $10 more than it did last month. But remember, Costco stands behind its memberships and guarantees your satisfaction.

If you upgrade to the Executive membership and don’t rack up enough cash back to make it worthwhile financially, you can downgrade to a basic one. And when you do, Costco will pay you the difference. So if you only earn $50 through your Executive membership and decide to downgrade, Costco will reimburse you $15 (just visit the customer service desk).

For this reason, it’s worth giving the Executive membership a try if you shop at Costco fairly often. Even if you don’t, a single large purchase like a vacation could make it so the Executive membership is worth paying for. Keep that in mind, too, when making your choice.

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.JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and JPMorgan Chase. The Motley Fool has a disclosure policy.

“}]] Read More