Image source: Getty Images
I recently let my Costco membership lapse because I wasn't using it enough to justify the annual price. I love finding great deals on everything I buy -- and Costco's great for that -- but I can score good food prices at stores that are a bit closer to my house than my local Costco.
With Costco's annual membership prices recently increasing to $65 for Gold Star memberships (up $5 annually) and $130 for Executive memberships (up $10), some members may be asking themselves if the cost is worth it.
If you decide it's not, here's how to get a membership refund.
How to get a Costco membership refund
If you're ready to cancel your Costco membership and get a refund, it's very easy to do. Costco gives you two options for canceling memberships, including:
- In person: You can visit any Costco warehouse store and speak with an employee at the membership counter. You'll be able to cancel your membership right there and receive an immediate refund.
- Over the phone: If you don't want to cancel your membership in person, you can cancel it over the phone by calling 1-800-774-2678.
There's also an online form you can use to cancel your membership and receive a refund if the membership has automatically renewed. Just fill out this form and your membership will be canceled and refunded.
Here's the really good news about canceling your Costco membership: You can cancel at any time and receive a full refund. Costco is well known for its generous return policy and 100% customer satisfaction, which extends to its memberships. The company says on its website, "We will cancel and refund your membership fee at any time if you are dissatisfied."
That's a pretty sweet deal.
So, if you find the recent increase in membership fees too steep for your budget, you're not using the membership enough, or for any other reason, you can just ask Costco for a refund.
How to decide if you're ready to cancel your membership
I often assess my monthly subscriptions and annual memberships to ensure I only pay for services I use. I'm pretty ruthless about it, and any recurring payment that I can't justify gets cut, whether it's an unused gym membership or that extra streaming service I barely use.
I did the same recently with my Costco membership, and it didn't make the cut. Everyone's budget is different, though, so here are a few ways to figure out if the annual membership is worth it for you.
- You can find better deals elsewhere: My family frequently shops at Aldi and finds great BOGO deals at our local grocery store. The combination of those two made our annual Costco membership fee hard to justify.
- You don't buy Costco gas: Costco gas can be up to $0.30 cheaper per gallon than many gas stations. That's an impressive savings, but Costco's fuel stations may not be convenient to where you live. That could be a deal breaker if you bought a membership to save on gas.
- You're not using all the membership perks: If you're not filling your prescriptions at the Costco Pharmacy, buying tires at its Tire Center, or getting your glasses through Costco Optical, then a membership may not be worth it to you.
It's also worth mentioning that if you're an Executive member and you're not earning as much cash back rewards as you'd like, a membership may not be worth it. Executive members earn 2% back on their purchases, and Costco just raised the annual amount you can earn to $1,250 (up from the previous $1,000). However, if you're not tapping into that benefit, then it might be time to cancel your membership.
An annual Costco membership is probably a good way for many people to save money. But if you're like me and aren't using all the benefits, it might be time to cancel your membership and get a refund. Just be sure you're ready to give up Costco's $1.50 hot dog combo meal before you do.
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. Chris Neiger 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.
