The Zero-Risk Way to Trial a Costco Membership

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A Costco membership is only a bargain when it saves you money. Here’s how to see if it’s the right fit for you. [[{“value”:”

It’s not easy to shop at Costco without a membership. But it’s also not easy to tell if you’ll save money by shopping at Costco if you can’t, you know, shop at Costco.

So how do you decide if it’s worth forking over the big bucks (currently $60 or $120; starting Sept. 1, it will cost $65 for a Gold Star membership, $130 for an Executive) to join? Well, you use my fool-proof method to join Costco with no risk. Here’s how it works.

Step 1: Get a Costco membership

You can do this at the membership counter of any Costco. It only takes a few minutes. You’ll need to pay your membership fee on the spot.

Alternatively, you can do this online through Costco.com. You’ll be able to shop online without any extra steps. However, you’ll need to head to the desk to get a membership card before you can shop in person.

Gold Star vs. Executive memberships

If you sign up after this month, you’ll need to choose between a Gold Star membership for $65 a year, or an Executive membership for $130.

The most relevant difference between the two account types is that Executive members earn 2% back on Costco purchases (in the form of an annual Costco Reward). Mathematically, you’d need to spend $3,250 to earn $65 and break even at the 2% rate.

In other words, if you think you’ll spend an average of $271 or more a month at Costco, the Executive membership is worth the upgrade. Otherwise, it’s not.

Step 2: Use the membership

Once you have your membership, use it. Buy the items you’d normally buy, while trying out some of the best perks Costco has to offer.

This includes the Costco house brand, Kirkland Signature. A lot of Kirkland products offer quality as good as (or sometimes better than) name brands, often at a discounted price.

You can also find a lot of name-brand bargains at Costco, too. This includes everything from clothing to electronics to appliances.

Pro tip: Costco codes as a “wholesale club”

Credit cards that earn bonus rewards in certain categories determine those categories based on merchant codes. Costco tends to code as a “wholesale club” with most (all?) card issuers.

Supermarkets have a separate code from big-box stores or wholesale clubs, so cards that earn bonus rewards on grocery store purchases won’t earn extra rewards at Costco — even on groceries. Switch to a card that earns bonus rewards at Costco or a good flat-rate card instead.

Step 3: Get a refund if you don’t like it

Costco is well-known for its excellent return policy and satisfaction guarantee. That guarantee covers the membership itself.

If you spend a few months shopping at Costco and realize you aren’t seeing the savings you hoped for, then head into a warehouse. You can cancel your membership at the membership counter and get a refund on your membership fee. It’s that simple.

(Keep in mind this will end your membership. You can’t return your cake and have it, too.)

This also works for downgrades. For instance, if you have an Executive membership but don’t spend enough to pay for the difference, you can downgrade to Gold Star and get a prorated refund.

Trying is doing

The best way to decide if you can save money at Costco is to try to save money at Costco. If it works out, great! If it doesn’t, cancel and get your fee refunded.

Costco isn’t for everyone. But you don’t need to wonder if it’s for you — you can just give it a try.

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. Brittney Myers 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.

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