3 Ways to Get Your Costco Annual Membership for Free

On Sept. 1, 2024, Costco will increase its membership dues. The price of a Gold Star membership will rise from $60 to $65. Likewise, an Executive membership will cost $130 instead of $120.

While the price change helps Costco offset increased overhead costs, it might make some Costco members hesitant to renew their memberships. Even so, Costco members can still find plenty of ways to pay for their annual membership. Here are three.

1. Become an Executive member

A sure-fire way to get your Costco annual membership for free is have Costco pay it in annual rewards.

That's the essence of becoming an Executive member. As such, you'll earn 2% cash back on Costco purchases. To earn the full value of your $130 Executive membership, you would need to spend $6,500 each year. That works out to about $542 monthly. Likewise, if you can spend $3,250 annually (about $271 monthly), you make up the difference between a Gold Star and Executive membership ($65).

2. Get a credit card for Costco purchases

Costco only takes Visa credit cards. If you use all kinds of credit cards, this can make it tricky to know which one is best for Costco purchases.

Fortunately, there are quite a few Visa credit cards that earn bonus rewards at Costco. The magic numbers here are 2% and 3% in cash back. If you're not currently earning 2% to 3% in cash back on your credit card, you're leaving money on the table (check out our full list of the best credit cards for Costco for more details).

If your credit card earns 2% at Costco, you would need to spend about $3,250 annually to earn the price of a Gold Star membership. If you have an Executive membership, you can double dip: You'll earn 2% back as an Executive member and 2% back on your credit card. With an effective earn rate of 4%, you would only need to spend $3,250 to earn the value of your membership in rewards.

3. Earn a Shop Card on a one-time purchase

A Shop Card is basically a gift card that you can use at Costco. You can buy them separately, or you can earn one with certain one-time purchases.

For example, many of Costco's home improvement services give out Shop Cards when you make the purchase through Costco. Often, the value of your Shop Card is 10% of the purchase amount. So, if you paid $1,300 for a service, you would get a $130 Shop Card. That essentially pays for your Executive membership in one go.

But you don't need to be a homeowner to get one of these Shop Cards. Costco will also give them out with other big purchases, like appliances, electronics, furniture, and mattresses. If you're in the market for one of these items, take a look at Costco's deals first. You might earn the value of your membership just by buying it there.

One thing to keep in mind: If you haven't gotten a Costco membership yet, or you know someone who hasn't, look for a membership promotion first. You can usually find these promotions online (Groupon is a good place to start), and you'll often get a Costco Shop Card for signing up and establishing auto-renewal. With that Shop Card, you're well on your way to getting the value of your membership in savings, especially if you apply any (or all) of the other tips above.