Here’s How to Get Costco to Pay for Your Annual Membership

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Want to effectively pay nothing for a Costco membership? Here’s how to pull that off. [[{“value”:”

Many people love Costco and find shopping there to be a giant source of savings. But then there are those people who grumble about the membership fees — to the point where those fees deter them from joining.

Costco recently raised its prices. Now, a basic Costco membership costs $65 a year, while an Executive membership costs $130. These prices are slightly higher than Sam’s Club, which charges $50 for a basic membership and $110 a year for a Plus membership.

Plus, Sam’s Club commonly offers discounted memberships as promotions throughout the year. That’s something Costco doesn’t typically do. If you’re looking for a cheaper Costco membership, it will be hard to come by.

That said, there’s one trick you can use to get Costco to pay for your annual membership. It’ll require you to spend a certain amount of money at the store, but it can be done.

When your cash back covers your Costco membership fee

The reason Costco’s Executive membership costs twice as much as a basic one is that it gives you 2% cash back on your Costco purchases. And if you do a lot of shopping at Costco, that cash back can really add up.

If you spend $3,250 a year at Costco, you’ll get $65 back from your Executive membership. That’s enough to cover the cost of your upgrade from a basic membership.

But if you spend $6,500 a year at Costco, your Executive membership will give you $130 back. And that’s enough to cover the cost of your upgraded membership in full.

And the best part? Any cash back you get from an Executive membership is on top of whatever cash back your credit card gives you. Click here for a list of the best credit cards to use at Costco so you can rack up plenty of rewards.

Hitting the $6,500 mark may be easier than expected

You may be thinking, “How on earth am I going to spend $6,500 a year at Costco?” And to be clear, you should not force yourself to spend money on things you don’t particularly need or want simply to snag cash back that covers your membership fee. However, you may find that making certain purchases through Costco allows you to hit that threshold pretty easily.

For one thing, travel packages booked through Costco are eligible for cash back. So are purchases of appliances and electronics. If you have several bigger-ticket items on your list, buying them at Costco could make sense not just from a cash back perspective, but also, because Costco offers great prices and service (like a second-year warranty on all laptops, for example, and free tech support when you need it).

Plus, if you have a larger family to feed and shop at Costco every week, you might easily spend $130 per trip on groceries and household essentials alone. At 50 weeks a year (because it’s fair to assume you’ll skip a couple of weeks), that’s $6,500 right there.

There are ways to shop without a membership — but they’re complicated

If you don’t like the idea of having to pay for Costco, there are other tactics you can try. First, Costco.com is available to anyone, though there’s a 5% surcharge for non-member orders. You can also tag along with a paying member to get in the door at Costco and do your shopping in person.

Plus, one lesser-known Costco rule is that anyone who has a Shop Card (the store’s version of a gift card) in their possession is allowed to enter the store to use it. So you could easily pay someone you know who’s a member for a Shop Card and visit Costco whenever you want.

But you should know that a Costco membership could offer you and your family a lot of value. It might make sense to pay for one even if you can technically get around the membership fee.

And while you may not get a discount on that membership when you sign up, if you spend enough at Costco, you might be able to effectively get the cost of your membership covered in full — especially if you’re strategic in the way you shop.

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.Maurie Backman 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.

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