Here’s How to Upgrade to a Costco Executive Membership

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Costco shoppers often start with a Gold Star membership. It’s the most affordable option, at $60 per year. Eventually, you may want to move up to the Executive membership, Costco’s highest level of membership. It costs $120 per year, but you earn a 2% annual reward on qualified purchases.

Even though it costs twice as much, it’s a popular choice. Executive members made up 45% of Costco’s paid membership at the end of 2023. If you’re ready to upgrade, here’s how to do it.

The three ways to upgrade to a Costco Executive membership

Here are your options to upgrade to a Costco Executive membership:

• Online: Log in to your Costco account online. If you haven’t already, you can create one using your membership number. Select “My Account,” and then “Renew Membership.” Click on “Upgrade Membership,” go through the payment process, and you’ll be an Executive member.
• Over the phone: Call Costco Membership and Warehouse Services at 1-800-774-2678.
• In person: Go to the membership counter at a Costco warehouse and ask to upgrade your membership.

You must be the Primary Member or the Account Manager on your membership to upgrade it. So for example, if you have a membership with your spouse and they’re the Primary Member, they would need to handle the upgrade.

Costco prorates the $60 upgrade fee ($120 for the Executive membership, minus the $60 you already paid for a Gold Star membership) for the number of months left in your membership year. If there are six months left, then you’ll be charged $30. At renewal, you’ll be charged $120 per year going forward.

Benefits of a Costco Executive membership

The best benefit of being a Costco Executive member is the 2% annual reward. You earn this on qualified purchases at Costco, Costco.com, and Costco Travel. Most purchases are eligible, with the most notable exclusion being gas.

So, if you spend $5,000 per year on qualified Costco purchases, your Executive membership would save you $100. The maximum annual reward you can earn is $1,000.

Executive members also receive exclusive offers and extra benefits on some Costco Services. For example, if you buy auto insurance through Costco, an Executive membership will also get you roadside assistance. If you buy homeowners insurance through Costco, you’ll get lockout assistance.

Is a Costco Executive membership right for you?

If you spend more than $3,000 per year at Costco, you should get an Executive membership. Once you’ve spent $3,000, that’s a $60 annual reward already, enough to cover the cost difference.

Remember that you don’t earn rewards on Costco gas purchases. If a lot of your Costco spending is at its gas stations, that will affect how much you earn back. But if you shop at its warehouses and website regularly, you’ll have plenty of opportunities to earn rewards.

You can try upgrading risk free to see if you like it and how much you earn. Thanks to Costco’s satisfaction guarantee, if you decide you don’t want to keep your Executive membership, you can downgrade it and get a refund for the upgrade fee. All you need to do is go to the membership counter and ask.

For that reason, it’s never a bad idea to give the Executive membership a try. The worst-case scenario is that you cancel it and get your money back. Or, it could end up saving you quite a bit of money.

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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.Lyle Daly 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.